Digit is a San Francisco-based financial health company that analyzes spending and automatically saves the optimal amount for users each day. Led by founder and CEO Ethan Bloch, the company began as a savings tool and created an 'auto-save mode' to remove the stress and effort of saving. By connecting directly to members' banks, Digit automatically allocates money toward personalized savings goals to ensure steady progress toward financial health. So far, members have set over 8 million goals and on average save over $2,000 a year. The company has a team of over 60 and intends to use new funding to expand operations and broaden its business reach. The product focus remains automated, individualized savings and goal tracking to improve users' financial stability. Digit operates an automated savings service that connects to users' checking accounts and learns spending patterns to move small amounts into an FDIC-insured savings account. The product targets Americans—particularly the 18–30 demographic—who the company says save insufficiently. Digit has grown from processing a few million dollars a month to nearly $20 million per month and has helped customers save over $125 million since launch. The company was founded in February 2015, currently employs 18 people, and operates in the U.S. At the time of the Series B, Digit still had $8 million remaining from its Series A. In the near term the team plans to invest heavily in product development and is slated to grow headcount. Digit provides an automated savings platform that connects to users’ bank accounts, tracks spending behavior with algorithms, and moves money into a separate non‑interest‑bearing savings account. The service is primarily managed via SMS rather than a full mobile app, with users texting to view balances, withdraw, or save more. Since opening to the public after a lengthy beta, Digit’s user base has grown 10x and its savings under management have increased 5x. Only about a quarter of users have withdrawn funds set aside for them, and another quarter increase savings when prompted by SMS, indicating strong engagement. The company plans to expand features, including working on a compliant way to pay interest, exploring overdraft protection, and ultimately automating broader financial tasks like bill payment, debt reduction, and retirement saving. With rapid user growth and recent funding, Digit is focused on integrating into multiple parts of consumers’ financial lives. Digit automatically transfers funds from a user’s checking account into a non‑interest bearing but FDIC‑insured Digit savings account using an algorithm that assesses balances, pay schedules and spending habits. Users grant Digit access to online banking credentials and the service decides safe transfer amounts without requiring preset rules. Digit communicates primarily via SMS, sending daily updates and responding to simple commands like 'Recent' and 'Withdraw', and provides a minimal web view of balances and transfer history. Since launching its pilot, Digit has saved more than $600,000 for users and the company reports saving about 5.5% of users' monthly income on average; one pilot user saved roughly $1,000. The company plans to integrate with a major banking partner to lower ACH processing costs and scale, and will use the seed funding to grow the team slightly. CEO Ethan Bloch, formerly of Flowtown (acquired by Demandforce), leads the company and assembled a team and advisors focused on payments and scaling.

Total raised

$64M

Funding rounds

4

Latest round

Series C

Latest activity

Sep 2019