In an effort to overcome these challenges and assist others in doing the same the trio launched Method a platform designed to empower fintech applications with debt and debt repayment capabilities.
“Jose and Marco directly encountered the struggles of financial account connectivity while establishing their first venture GradJoy a Y Combinator-backed startup” Shah informed TechCrunch. However Shah asserts that Method only collects “minimal user information” and refrains from selling data to third parties. Looking ahead, Method plans to strengthen its banking relationships and introduce credit card network integrations for retail and travel clients.
“To facilitate product growth, Method, based in Austin with 35 employees, closed a $41.5 million Series B funding round led by Emergence Capital, with participation from Avra Capital, Samsung Next, Andreessen Horowitz, Y Combinator, and Ardent. By utilizing identity verification data from credit bureaus and telecom companies, and merging it with information from core banking systems, Method can consolidate an individual’s debts and carry out tasks like balance transfers, bill payments, and payoffs on their behalf.
Fintech developers can seamlessly integrate this technology into their apps using Method’s API. The company also plans to introduce a portal where users can log in to manage the data they’ve shared with Method’s clients.
In terms of competition Method goes head to head with major players such as Plaid MX Spinwheel and Dwolla né?. This new investment brings the total funds raised by the company to approximately $60 million. né?. Often, they find themselves navigating through a complex network of fragile screen-scraping APIs to extract data from users’ financial institutions, or resorting to outdated tools to handle piles of physical checks and paperwork.
In the midst of these obstacles, three friends and entrepreneurs — Jose Bethancourt, Marco del Carmen, and Mit Shah — shared with TechCrunch the significant hurdles that can potentially break deals, especially for smaller fintech teams né?. Developers of fintech apps face a daunting challenge when it comes to integrating features like repayment, balance transfer, and bill pay functionality. Image Credits: Method
Dealing with a vast amount of sensitive data, Method may give some users pause. “Consumers no longer need to repeatedly authenticate for different accounts and once Method retrieves a consumer’s liabilities they can settle those liabilities using Method’s payment system.”
Recently Method included support for credit cards; it serves as the backbone for Bilt’s credit card linking tool enabling Bilt customers to link their cards to earn points on eligible purchases. All users need to do is provide their phone number when using these apps.
Having emerged from stealth mode in 2021, Method currently supports over 30 million account connections for 4 million users, and has facilitated over $500 million in liability repayments so far.
Method plays a key role in enabling various repayment features in fintech apps né?. “GradJoy aimed to streamline student loan management but Jose and Marco soon realized the limitations of existing account connectivity systems.”
Method operates by leveraging the protections for consumer credit access established by the 2010 Dodd-Frank Act né?. Shah pointed out that many of these competitors rely on systems that require users to input their financial account credentials, which he believes can create points of friction.
“Method is assisting millions of Americans in their financial journeys, while aiding lenders and fintech companies like SoFi, Aven, Happy Money, and Figure in enhancing conversion rates through improved user experience and engagement,” Shah emphasized né?
