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Having the backing of the government like with Premium Bonds is huge. Both for marketing and for trust. Building trust is definitely a challenge for us as a ne
by adammoelis 6y ago
Having the backing of the government like with Premium Bonds is huge. Both for marketing and for trust.
Building trust is definitely a challenge for us as a new company. Funds with Yotta are FDIC insured up to $250,000, which helps, and we communicate that to users, but people still need to trust us fundamentally.
We looked into Premium Bonds and also found that a lot of Premium Bond ownership comes from older generations. We are hoping that our UI and mobile first approach make the concept more appealing to a younger demographic in the U.S.
- adav 6y agoAs a Brit not attuned to American retail banking I didn't notice the FDIC insurance element (aside: in the UK that's called FSCS Protection). Actually that's pretty huge for trust, great job :)
- adammoelis 6y agoYup - but people still need to trust that we actually are FDIC insured. We've had some people contact our partner bank directly to verify they are working with us, for example. But hopefully as we get some PR and more word of mouth, we won't have that issue as much.
- adav 6y agoPerhaps you could link directly to evidence of your FDIC insurance policy?
- adammoelis 6y agoYeah maybe there is something like that we can do. Hadn't thought of providing some sort of hard evidence. I will look into this now though!
- n9com 6y agoI like the concept, but what you are offering isn't really comparable to Premium Bonds in the UK. The prizes in Premium Bonds are guaranteed every month. It's a raffle where every £1 deposited gives you a unique Bond ID. This is totally different from a lottery where the prizes are not guaranteed to be awarded for every draw.