Will Peng, a Princeton graduate with $35,000 in student debt, knew he wasn’t alone in his struggles. He turned to Google and NerdWallet articles, but still made "a ton of mistakes." This experience sparked an idea that would eventually become Northstar, a startup aiming to make financial advisory services accessible to everyone.
The Problem: Financial Advice is a Luxury
Peng realized that receiving financial advice was often reserved for the upper middle class or affluent. This realization led him to develop a solution that partners with employers to offer financial wellness benefits to their employees. "We want to build financial wellness for the 100%, not just the 1%," he said.
How Northstar Works
Northstar has created personal financial management tools to guide employees through various financial and life situations. Their aim is to help employees understand "the full value of their compensation, equity, and benefits." With clients ranging in size and industry, including private and public companies like Zoom, Snap, and NerdWallet, Northstar charges employers a monthly subscription based on headcount.
Employees pay nothing for these services, making financial advice accessible to all. Currently, Northstar has about 50 employees, with contractors serving as financial advisors in 18 countries. The company hopes to expand its operations to 30 countries by the end of 2023.
The Vision: Universal Financial Wellness
GGV Capital managing partner and Northstar board member Hans Tung shares Peng’s vision for universal financial wellness. "Financial advice has been around for many years, yet most consumers do not have access to financial advisors at affordable rates and enabled by tech, creating a huge market." Tung believes that Northstar is democratizing technology for underserved markets and wants to "go global."
The Future: Expanding Operations and Impact
With its new round of financing, Northstar plans to double or triple its headcount. This expansion will enable the company to reach more employees and further its mission of making financial wellness accessible to all. As Peng said, "We want to build a platform that helps people achieve their financial goals and live better lives."
Conclusion
Northstar’s innovative approach to financial advisory services has the potential to revolutionize the industry. By partnering with employers and making financial advice accessible to everyone, Northstar is democratizing technology for underserved markets. As the company continues to expand its operations and impact, it remains committed to its mission of universal financial wellness.
About Northstar
Northstar is a startup that provides personal financial management tools to employees through partnerships with employers. The company aims to make financial advice accessible to all, regardless of income or background. With clients ranging in size and industry, Northstar has already made significant strides in the fintech space.
Sources
- [1] "Northstar Raises $25M to Expand Financial Wellness Platform" (TechCrunch)
- [2] "Financial Advice Should Be Universal for All Employees" (GGV Capital Blog)
- [3] "The Future of Fintech: Northstar’s Innovative Approach to Financial Advisory Services" (Fintech Times)
