# HMBradley Financial Model Neobank offering a tiered-APY deposit account + one-click pre-approved credit products, positioning as the fintech disruptor to megabanks. - Canonical: https://finamodel.com/startups/hmbradley - Excel download: https://finamodel.com/startup-models/hmbradley.xlsx - Category: Fintech - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $18.3M - Founded: 2020 - Geography: US (implied; USD accounts, US banks referenced). - Customer: B2B2C ## About the company HMBradley is a consumer neobank offering tiered-APY deposits and pre-approved credit products. It positions savings behaviour, account engagement, and personalised credit access as an alternative to traditional megabank relationships. The product can earn across the full customer balance sheet: deposits provide funding, cards create interchange, and lending products generate credit income. Tiered rewards are designed to encourage customers to keep funds and activity inside the platform. The model should forecast customer cohorts, tier mix, deposits per account, card activation and spend, then calculate interest expense, deployed-asset yield, and net interest margin. Credit-card or loan receivables need their own growth, yield, delinquency, and loss assumptions. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - **Omnibus Account**: Single deposit account with savings tiers that pay higher APY based on the share of income the customer saves each quarter: - Tier 1: 3.00% APY (saving ≥20% of deposits) - Tier 2: 2.00% APY (saving ≥15%) - Tier 3: 1.00% APY (saving ≥10%) - Tier 4: 0.50% APY (saving ≥5%) - **One-Click Credit Card**: Pre-approved offers surfaced inside the app; 13.9% APR, $10,000 credit limit shown in demo; 3-2-1 cash-back rewards tied to savings tier. - **Plans**: In-app goal-based savings buckets (vacation, emergency fund, etc.). - **Future roadmap**: Pre-approved mortgages and auto loans surfaced via One-Click Credit (mortgage example: $830K, 30yr, 3.30%; auto: $80K, 60mo, 2.90%); referral/tier-rewind mechanic. - Banking partner: Hatch Bank, Member FDIC (accounts are not HMBradley's own charter). ## Market - Top 4 US banks (Chase, BofA, Wells Fargo, Citi) worth ~$1.1T. - Banks 5–100 worth ~$1.4T. - Current fintech challengers (Varo, Chime, Aspiration, MoneyLion, Level, etc.) worth <$10B collectively. - No TAM/SAM/SOM breakdown or CAGR figures provided. ## Revenue model The deck does not explicitly state a revenue breakdown, but the product structure implies: 1. **Net interest margin (NIM)**: Earns spread between yield on deployed deposits (credit card receivables, loans, and investment of deposits) and APY paid to depositors. Primary early revenue driver; deposit float invested at bank partner level. 2. **Interchange**: Revenue from credit card spend (standard Mastercard/Visa interchange ~1.5–2.0%). Second revenue stream once card adoption scales. 3. **Lending spread on One-Click Credit products**: Mortgage, auto, and personal loan origination fees or rate margin; may be referral/lead-gen to third-party lenders or balance-sheet originated.. 4. **Credit card interest**: Cardholders who carry a balance pay 13.9% APR. No pricing tiers, subscription fees, or explicit monetization schedule shown. ## Traction & metrics - Deposit Balance chart (slide 8, Mar 30 – Aug 24, 2020): strong upward curve; started near $0 in late March 2020, steep acceleration after "Began Advertising" (~mid-May) and another step-change after "Announced Credit and App" (~late June). Deposit balances in $'000s - axis values not legible but trajectory is near-exponential by Aug 2020. - Avg. Account Balance (green line, slide 8): rose then dipped slightly after advertising began, then stabilized - consistent with influx of lower-balance new accounts diluting average. - Avg. Funded Account Balance (pink line, slide 8): peaked mid-May, then declined slightly. - No explicit customer count, revenue figure, or deposit balance endpoint stated in text anywhere in the deck. - Demo account balance shown: $12,728.15. ## Unit economics - CAC (paid): $14 via Instagram. - Credit card APR: 13.9%. - Deposit APY range: 0.50%–3.00% depending on tier. - Implied NIM: spread between deposit cost (0.50–3.00% APY) and credit/lending yield (13.9% APR on cards, ~3.30% mortgage, ~2.90% auto) - card NIM is the widest spread.. ## Competition / moat - Incumbent megabanks (Chase, BofA, Wells Fargo, Citi): "too big to innovate". - Current challengers (Varo, Chime, Aspiration, MoneyLion, Level): worth <$10B collectively; implied they don't offer the behavior-based savings-tier + integrated credit model. - Moat claims (implicit in deck): - Time-series behavioral data from deposit accounts enables better credit targeting and lower lending CAC. - Savings-tier mechanic creates stickiness and incentivizes primary-account behavior. - Early mover in "savings-rate as a reward" model. - Earned media / organic traffic as low-cost acquisition channel. - No patents, regulatory moats, or exclusive partnerships named. ## Team & funding ask / use of funds - Team: backgrounds from Goldman Sachs, Capital One, Chase, Wells Fargo, USAA, Farmers Insurance, Procore, Medallia, Microsoft, Soylent, Financial Technology Partners, Varo, Fair, Cheddar, Honey, LivePerson. Names not legible from text extraction. - Raising: $15M. - Contact: founders@hmbradley.com. --- ## Recommended financial model - **Archetype + why**: Consumer neobank / deposit-funded NIM model with interchange and lending revenue lines. Closest archetypes are: 1. **Bank / NIM model** (primary): revenue = deposit base × NIM%; cost = interest expense (APY paid by tier) + opex. 2. **DTC customer cohort model** (supplementary): track customer acquisition, tier distribution, deposit balance/customer, card adoption rate, and revenue/customer over time. This is an operating startup, not an M&A or SPAC deck. - **Forecast horizon & granularity**: Monthly for Year 1–2, quarterly for Year 3–5. 5-year forecast appropriate for a growth-stage neobank seeking Series A. - **Key drivers & assumptions**: - New accounts per month: ramp from ~500/mo (current est.) to 5,000/mo by Year 2, based on steep chart trajectory and $14 CAC with $15M raise. - Blended CAC: $14 paid; blended (incl. organic) ~$8–10. - Avg. deposit balance per funded account: ~$8,000–$12,000 based on demo UI ($12,728) and typical neobank data; axis not readable on chart. - Savings tier distribution - 30% Tier 1, 25% Tier 2, 25% Tier 3, 20% Tier 4 (users are self-selected savers given product design). - Blended APY paid: ~1.8–2.0% weighted across tiers. - Deposit yield / NIM gross: 3.5–4.5% on card receivables; mortgage/auto referral fee or spread TBD. - Credit card adoption rate: 25–40% of active accounts by Year 2 (product is tightly integrated into app). - Avg. credit card spend/month per cardholder: $1,500. - Interchange rate: 1.6% blended. - Card revolve rate (% carrying balance): 35%; yield on revolving balance at 13.9% APR. - Monthly churn / account attrition: 1.5–2% (savings-tier stickiness expected to reduce vs. typical neobank). - Opex: engineering + compliance heavy early; scale toward 60–70% efficiency ratio at maturity. - Bank partner (Hatch Bank) fee / rev-share: must model; regulatory cap on deposit placement, pass-through economics unknown - flag as key open question. - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: CAC stays ~$14, blended NIM 2%, card adoption 30%, 2,000 new accounts/mo by end Year 1. - **Bull**: Viral word-of-mouth reduces blended CAC to <$10; tier distribution skews higher (more Tier 1–2); credit card adoption 45%; deposit balances grow faster. - **Bear**: CAC rises to $30+ as Instagram CPMs increase; deposit APY rates create margin compression if Fed rates drop; bank partner fee structure eats NIM; regulatory constraint on BaaS model. - **Required sheets / outputs**: 1. Assumptions dashboard (all drivers, toggle-able by scenario) 2. Customer cohort build (monthly new accounts, attrition, cumulative active accounts) 3. Deposit balance model (accounts × avg balance × tier distribution) 4. Interest income & expense (NIM bridge by tier) 5. Credit card P&L (adoption funnel → spend → interchange + revolve interest) 6. Lending revenue (optional: mortgage/auto referral fees, Year 3+) 7. CAC & marketing spend model 8. Opex / headcount model 9. 3-statement (IS / simplified BS showing deposit liabilities & loan assets / CF) 10. Unit economics summary (LTV, CAC, LTV:CAC, payback period) 11. Charts: deposit balance growth, revenue by stream, NIM waterfall, cohort LTV curve ## Frequently asked questions ### Is the HMBradley financial model free? Yes. The HMBradley model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.