While some local tech companies look for ways to weather the economic downturn caused by the outbreak of COVID-19, the disease caused by the coronavirus, others are hoping to come out of it ahead. And some see themselves poised to be a game changer in the new post-coronavirus economy.
Dallas-based fintech startup Securing Life Today is one of those. Founded by former financial advisor Brandon Burton in 2013 with $30,000 of his own money, the startup provides a software tool that allows users to connect their financial account in a single place so they can track their finances and meet their goals.
And with coronavirus spreading in the U.S., Burton hopes his company can make an impact and provide for some financial security to both businesses and employees as COVID-19 spreads nationally.
"Not even financial advisors know what to tell people right now."
“I think we’re at a point to really add value and help companies out right now. When everyone else is running away we're going to stand up and help,” Burton said. “Everyone needs to plan for at least the next three months.”
Last year, the company made changes to part of its business model, charging users $4 per month for the formerly free platform, a move Burton said would allow users to know their data is being properly secured. Now, Securing Life Today is offering its platform to businesses free for the next three months.
Securing Life Today partners with businesses’ HR departments to provide its fintech platform to employees, almost as a benefit like health insurance or a 401K. Burton sees it as providing a similar sense of security to employees.
“Not even financial advisors know what to tell people right now... so how is an employee going to have confidence in a 401K,” Burton said. “People need to understand their money and understand their payments… then they can start saving money. We’re trying to show them how important this really is.”
Burton said he sees the move as a future investment into the Securing Life Today and hopes that companies see it in a similar light. He hopes that after the three months, businesses will see the value the software provides and continue to offer the service to its employees. He added that during uncertain times, when many are fearful of losing their jobs, by offering Securing Life Today to its employees, companies can show they are willing to invest and take care of their workers.
“This is a wakeup call to everyone,” Burton said. “The answer to solving the problem is helping your employees financially and that doesn’t mean giving them money, it means letting them know… that means your family is behind that as well. Companies stand to benefit greatly because don’t you think if I was an employee and my leadership stepped up to the plate and said... ‘We’re taking the right steps to make sure you have the right tools.’ If they play it smart, they can retain their employees for the rest of their careers.”
So far, Burton said one of the biggest disruptions caused by the coronavirus to Securing Life Today is the cancellation of some of its financial workshops. However, he encourages everyone to begin planning financially for further disruptions in the comping months.
However, despite some minor setbacks, he sees the uncertainty caused by the virus putting Securing Life Today and other fintech startups across the country in a unique position. For one, many people will be looking to get finances in order as things quickly change. In addition, he thinks the uncertainty will show people that when events like the pandemic happen, even many professionals in the financial industry struggle to understand how to navigate forward, causing many people to look to tech solutions.
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“I think the tech will stand as a primary solution for people now and moving forward,” Burton said. “And once we get through it, it will be the leading thing that helps people get back on the right path. That’s a huge opening for all of us. These financial people are learning as they go, like all of us… so shouldn’t I use financial tools myself?”
In addition to people looking for new technology solutions to help themselves navigate the world ahead, Burton said he also thinks more companies will be looking to get into the fintech space. However, he said that may be difficult in the near future, as he thinks there will likely be upcoming government regulation on the financial industry – due to the drastic fall of financial markets a week ago – which will create a higher barrier to entry to newly launched fintech startups.
“We’re in a unique position where we can make a huge difference in our country right now,” Burton said. “I’m just passionate about what I’m doing, which is helping people, helping companies learn how they can work with their employees to help them reach their financial goal, and how important that relationship is between the employer and the employee. Any successful business, they have an inventory and accurate budget at all times… and that’s just like personal finances for the 21st century.”
