Elevate to offer FDIC-insured dollar accounts

FINTECH startup Elevate said on Thursday it has raised $5 million in fresh funding to launch Federal Deposit Insurance Corp.-insured dollar accounts for Filipino freelancers.

This financing round, which brings the total raised to $10 million since 2021, saw contributions from investors including Y Combinator, Goodwater, Global Founders Capital, and VSQ. With the new funds, Elevate, headquartered in London and Dubai, will expand its operations to the Philippines “to address the financial challenges faced by Filipino freelancers.”

“We are thrilled to bring our innovative financial solutions to the Philippines, a market with a burgeoning freelance community,” said Elevate CEO Khalid Keenan. “Our goal is to empower freelancers by providing them with secure, efficient services and the best USD-peso FX rates  that address their unique needs.”

He explained that Elevate’s platform simplifies the process for Filipino freelancers to receive payments in US dollars, supporting free and fast deposits from US and international employers, as well as popular platforms like Upwork, Fiverr, PayPal, Deel, and Toptal.

The startup, he added, offers the “most competitive foreign exchange rates” in the market by partnering with multiple large global FX providers integrated with banks in the Philippines.

In addition to facilitating USD transfers, Elevate provides a Mastercard debit card for online spending, enhancing the convenience for its users. The platform’s key differentiator is its partnership with Bangor Savings Bank, a 172-year-old institution in Maine, USA, with over $7 billion in assets.

Through this partnership, Elevate offers FDIC-insured accounts, providing users with the security of knowing their funds are protected up to $250,000 in the event of bank failure. This feature distinguishes Elevate from other electronic money accounts such as Wise and Payoneer.

“The introduction of FDIC-insured accounts through our sponsor bank, Bangor Savings Bank, is set to revolutionize the financial landscape for Filipino freelancers, offering them unprecedented security and convenience in managing their international earnings,” Keenan added. Since its launch in early 2024, Elevate has attracted over 150,000 users globally.

With 1.5 million Filipinos registered on online international freelancing platforms and an additional 1.3 million working in BPOs, mostly for US companies, the Philippines is “a hotspot for remote work,” Keenan said.

Looking ahead, Elevate plans to expand its customer support, content, and compliance teams in the Philippines in the last semester of 2024.