Spruce Mobile Bank: what is it and how it works
There are two notions in the financial world that seem to go like oil and water: taxes and neobanks.
Now there is a new mobile banking platform in town that wants to reach across the aisle and change the volatile relationship.
Spruce is an App released by the American tax preparation company in collaboration with the fintech Galileo to combine the necessity of users on saving on tax money and deductibles, while also accessing the practicality of neobanks.
What Is Spruce?
Spruce is an Online banking App that was created by an American company that specializes in tax preparation, H&R Block. They are not the only ones sponsoring the project — the fintech solutions company Galileo is in charge of pouring their expertise into its blueprint.
The app, which was released on January 20th, 2022, holds a vast array of features — all designed to help individuals save money and better optimize their taxes. It includes several features that make the App examplarery in this regard.
A spending account with an appended debit card; a connected savings account which permits the user to program it, and compartmentalize it, with specific budget objectives; USD20 overdraft protection; even early paycheck availability. These are just some of the tools at Spruce’s disposal.
The reason for the creation of this company stems from the fact that there is a need for overall financial inclusion in the states and the inherent stability of such a model — this in turn creates an environment that is highly apt for widespread adoption of digital financial services.
Spruce is empowered by a cloud-based tech platform that was brought to life by Galileo. Their innovative financial solutions are an additive crescent, demanding customer requirements.
Another reason for Spruce’s inception is the fact that less than half of the American population uses digital-only banks as either a primary or secondary bank account. The remainder of the population, experts predict, is likely to switch to neobanks soon in the future – as a secondary financial foothold.
History of Spruce
H&R Block is a company that was created on January, 25th in 1955. H&R Block operates in Canada, US, and Australia. It is dedicated to tax preparation. The founders are Henry W. Bloch and Richard Bloch.
The company operates out of 12,000 retail tax offices and spearheaded several accounting professionals spread throughout the globe. It mostly offers business consulting services, as well as payrolling, consumer tax software, and electronic filing/tax preparation.
Their purpose is simple, albeit an essential: To help people when it comes to taxes. They have a reputation as leaders in the field – and have prepared approximately 800 million tax returns thus far throughout all of their offices.
H&R Block labels itself as a “people company first” and “a tax company second”. This means that they put the client above the rest. Their long-lasting relationships with customers means that Spruce is likely to inherit a large portion of the loyal client base.
Spruce is an emerging company that inherits H&R traits and values. Fueled by a strong sense of purpose, community and creativity, this brand-new neobank is set to prosper and gain new users at a rapid pace.
In regards to Galileo, the company is a world-leading fintech conglomerate that has partnered with H&R Block to give form to Spruce’s tech infrastructure. Galileo has also powered several other fintechs like KOHO, Chime, SoFi, Varo, Robinhood, to name a few. In addition, TransferWise, Monzo, Paysafe, and Revolut are in the mix as well since they use Galileo's patent IP tech.
Galileo’s headquarters are located in Mexico, where partnerships with Mexican and Latin American fintechs are emerging continually — this means that it has a network of partners which might prove useful for Spruce’s deployment in other regions.
What will make Spruce stand out is its ironclad Online security platform. Superior fraud detection, decision-making analytics, security, functional compliance regulations are facilitated by Galileo's API-based processing platform. This, in combination with highly capable, customizable and responsive programs, means Spruce will blossom in unfathomed ways come tomorrow.
Features of Spruce
When using Spruce, clients have almost no fees. There are no hidden fees — nor monthly fees or enrollment fees.
Customized Saving Goals
All saving goals can be tailored to each client. This means that whatever the saving goal is, it can be added onto the App.
Automatic Cash Back Rewards
People that utilize Spruce get really great perks. Cash back rewards are one of the provided services – in restaurants, shopping malls, and hotels within its network.
Clients can forget about delayed payments with this feature. All they need to do is sign up for the direct deposits feature. Anticipated payments can be completed up to two days early.
Free Credit Score (Credit Build-up)
This can be a highly valuable feature for individuals that are just getting started with their financial journey. Spruce helps build credit score for later with the sole use of a free Online App.
No Fees for Overdraft
Spruce doesn’t charge fees for bank account overdraft, as long as said overdraft does not exceed USD20.