Radius Bank Strengthens In-House PFM

Radius Bank, a digital bank with $1.4B in assets, is incorporating goals-based saving into its app. Radius, which has partnered with many fintechs, is in the process of joining LendingClub upon the close of a $185M acquisition of the bank.

Why should we care?
The goals-based saving tool is called Goalkeeper, which was developed with B2B fintech Harvest Savings & Wealth Technologies. It helps users save for specific goals, and makes deposits automatically through a proprietary algorithm. The tool resembles third-party personal finance management (PFM) platforms like Digit, and PFM-turned challenger bank Qapital. Radius said it’s seen growing interest in third-party PFMs, and it’s hoping customers will enjoy the convenience of having those functions embedded within its own banking app. It’s a move other banks, including RBC and Fifth Third, have taken to keep customers within their platforms. Banks are realizing that owning the customer relationship can help them mine insights better and grow client relationships.