Fintechs that specialize in rounding up customers’ spare change and investing those funds are getting a boost. Plum, a U.K.-based savings and investment app picked up $10 million in new funding as it plans European expansion. Canadian financial app Mylo, which just rebranded as Moka, announced plans to expand to France, and earlier this month, U.K.-based Moneybox, closed a $37.6M Series C fund raise.

Why should we care?
Consumers are spending less and growing their rainy day funds in response to financial strain from the pandemic, and fintechs see opportunities. Plum is positioning its product as a tool to build financial resilience. Research seems to support fintechs’ assumptions: A global consumer study from The Conference Board found that consumers’ saving and investing habits grew during the second quarter of 2020. Fintechs playing in this field are betting that bigger consumer appetites for saving and investing will help them scale more quickly, grow revenue, and in some cases, expand to new markets. The market for “invest your spare change” apps, however, is getting increasingly crowded, adding pressure on these brands to differentiate.