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By Anthony Termini, Benzinga
When George Parthimos’s teenage children started asking him about the stock market, he did what many parents would do – especially if they’re former technology executives. He created a self-directed trading platform for beginning and inexperienced investors. That was the genesis of Wolfpack Financial.
A Proprietary Buy-Now-Pay-Later Approach To Trading, Lending And Investment Education
Wolfpack, incorporated in Delaware and headquartered in New York, offers a suite of financial products and services through a native mobile app designed to help investors build sustained investments. Wolfpack is not a day trading platform.
It empowers new and inexperienced investors to discover opportunities, make trades easily and grow their overall investment portfolios over time. The product provides a powerful mobile-first investment and social platform that includes lending features using technology familiar to millennial and Gen Z consumers.
Wolfpack’s goal is to help give people control over their finances and the opportunity to build generational wealth. Its suite of products includes a short-term point-of-sale lending product.
The company has innovated traditional stock market lending products by creating a patent pending product it refers to as a “Booster Loan.” Wolfpack says that Booster Loans are the only fully collateralized Buy Now Pay Later lending product available from a financial institution.
Wolfpack positions the Booster Loan as a better alternative to personal loans, credit cards and traditional margin lending, all of which come with high interest rates and potentially higher credit and investment risks.
Booster Loans extend credit to investors for the purchase of common stocks or exchange-traded funds (ETF). Investors repay these loans over a fixed 10-week repayment schedule. Wolfpack expects Booster Loans to be rolled out in the fourth quarter of 2024.
To further appeal to consumers who are new to investing or have little experience, Wolfpack makes it possible to open an account with a minimum of $5. In addition, it offers up to $50 in rewards on new accounts with a minimum $100 deposit that meet certain requirements.
It is important to note that consumers who download the mobile app and fund an account automatically receive pre-approval for up to $2,000 in Booster Loans. When launched, they will also receive priority access to Booster Loans.
The penalty-free Wolfpack app is designed to help investors discover the financial benefits of stocks and ETFs. It lets investors buy these securities from as little as $5.00 per trade. The service includes fractional share trading and charges zero commissions.
Importantly, Wolfpack allows users to tailor screens that fit their personal investing criteria and matches the investor with the stocks and ETFs that meet those parameters.
Parthimos, who is Wolfpack’s founder and CEO, says that the app is “designed to be a one-on-one relationship between the market and the individual.”
Originally created with Parthimos’s now-adult children in mind, he says that the app “allows for the individual to set in a suite of filtering criteria that they are looking for that is very specific and custom to them.”
The platform includes personal finance education modules and descriptions of common investment terminology. Wolfpack’s premium data services alert users with trade signals and trend data based on their specific investment criteria.
Wolfpack’s Business Strategy
Wolfpack’s focus on millennials and Gen Z investors is grounded in data. As Charles Schwab’s 2024 Modern Wealth Survey points out, more than 40% of them invest in stocks. Wolfpack says they are targeting a total addressable market of more than 134 million consumers.
The company notes that millennial workers in the gig economy identify themselves as entrepreneurs rather than freelancers and are more likely to use a self-directed trading app than a traditional broker to manage their financial affairs.
The company’s retail strategy involves launching and promoting the Wolfpack app to its target demographic through a number of social media channels. The customer acquisition strategy involves maximizing top-of-funnel app downloads, converting registered users to brokerage accounts, increasing engagement to drive monthly active users and ultimately signing up Booster Loans at point-of-sale.
Wolfpack reports that it currently has one of the lowest customer acquisition costs in the industry. The company is also pursuing a B2B market strategy.
Wolfpack’s focus on business customers involves licensing its proprietary app and services – namely the Booster Loan opportunity – through strategic partnerships with banks, broker-dealers and securities clearing houses. The company says it has determined that more than 90% of US banks and broker-dealers don’t have a securities trading solution for their customers, and this can lead to customer attrition in favor of companies that provide brokerage services. By licensing Wolfpack’s technology platform, these institutions create a stickiness that can reverse outflows, add new customers and grow their assets under management by offering new services.
The company estimates that the combined consumer and enterprise opportunity in the margin lending business alone exceeds $600 billion. Other key revenue streams include transaction fees and monthly premium subscription services. For enterprise customers, revenues will be derived from platform licensing fees, premium subscription services, Booster Loan portfolio management fees and transaction fees.
Information about Wolfpack’s business fundamentals is available on the Wefunder website.
Investors interested in the rewards and priority access opportunities offered by Wolfpack should visit the company’s website.
Featured photo by sergeitokmakov from Pixabay.
Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
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