What if young people could learn saving and investing habits just by playing the video games they already love?
That's the idea behind Blast, an app developed by Acorns co-founder Walter Cruttenden that recently completed a $12 million seed funding round from an investor group that included self-help guru Tony Robbins.
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The Blast app runs in the background of smartphone games and automatically moves small amounts of money from a linked checking account into a high-yield savings account based on certain triggers set up by the gamer.
The savings account is an FDIC-insured account administered by Wells Fargo that earns 1% annual percentage yield, and Mr. Cruttenden said he would like to get it up to 2% as interest rates rise.
"Collecting 500 coins in Mario Brothers, or slaying so many angry birds or getting so many words in Words With Friends — those in-game achievements act as the trigger," Mr. Cruttenden said. "We're trying to help people do something that's boring and difficult, saving money, in a way that's fun and easy."
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The app is designed to move extremely small amounts — a dime, nickel or penny each time — that add up over hours of gaming.
According to Statista, 51% of mobile phone users in the U.S. play games on their devices. That number is projected to surpass 60% in 2018 and reach 64% by 2020.
The idea for Blast came from Mr. Cruttenden's son, a game designer. Mr. Cruttenden said "a friend of a friend" introduced him to Mr. Robbins, who already had several investments in
video games and eSports. After a single conversation, he said Mr. Robbins was interested in Blast.
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"He seems to be a pretty hip guy in sort of watching the latest trends," Mr. Cruttenden said. "He knows what the hot games are, what the hot eSports teams are."
Mr. Robbins did not respond to a request for comment.
Beyond an interest in gaming, Tim Welsh of Nexus Strategy said Mr. Robbins' investment in Blast is an extension of work he's done in the RIA industry. Mr. Robbins' popular book, "Money: Master the Game," heavily advocates fiduciary advice and fee-based financial planning for mass affluent investors.
He's also worked as the
chief of investor psychology at Creative Planning to help the firm's reach to individuals with $50,000 to invest.
Mr. Welsh also said the idea to connect video games and financial planning has been kicked around before, but this is the first time it's being put into practice. If it works, he believes it could be a great idea and even a tool advisers use to engage the next generation.
"If I'm going out there and buying 30 more Pokemon balls, I can put 1 more dollar into a savings account," Mr. Welsh said, noting how much his own daughter loves playing mobile games. "I think advisers could definitely do this to instill savings behaviors in kids."
To further incentivize gamers, Blast will put additional money into savings accounts for completing "missions," such as trying out a new game or reaching a higher level in an existing one. The app is free for users, and Blast will generate revenue from partnerships with video game publishers for helping to promote new products and retain customers.
Finally, players earn experience points, or XP in gamer parlance, just for playing. Blast will pay cash to the top 25% of XP-earners each week, including $1,000 to the top gamer.
When you account for the additional deposits made for completing missions, Mr. Cruttenden said the average account is up 6% since it launched in beta.
The app launched on the Android store on July 17 and currently has around 10,000 users. An iPhone version is coming soon.
The next goal for Blast is to move beyond mobile games and into the more serious PC games played in eSports competitions. It will soon be compatible with "Counter Strike: Global Offensive," a popular shooter among professional gamers.
But for now, Mr. Cruttenden says he is focused on getting young people to learn how to save, just as Acorns is dedicated to teaching young people about investing.
"It's a grand experiment for me. Let's mash together gaming and fintech and see what happens," he said. "It looks like we're getting pretty good traction, and we're excited about it."
