NEWS
Strata Credit Union Partners with Bits of Stock
Jun 13, 2024
Courtney May
Strata Credit Union Partners with Bits of Stock to Launch Innovative Stock Rewards Checking Account
Groundbreaking partnership with Bits of Stock™ allows Strata Credit Union to offer members fractional shares of stocks as rewards earned through debit card transactions.
June 3, 2024/PRNewswire/ -- Bakersfield, CA-based financial institution Strata Credit Union and Bits of Stock - A FinTech enabling Financial Institutions to reward in fractional shares of stock and have other brokerage capabilities– today announced a partnership that empowers Strata Credit Union members to earn fractional stocks as rewards on debit card transactions.
The partnership allows two mission-driven players in the financial services space to collaborate and remove barriers to entry that keep underserved people from investing. Strata’s focus on member experience and commitment to helping their members improve their financial wellness are key drivers of this collaboration. Bits of Stock's innovative solution aims to help bridge the wealth gap by allowing members to earn fractional shares of stock and become investors, every time they swipe their debit card.
"From the moment we spoke with Strata’s CEO Brandon Ivie, his commitment to helping their members improve their financial lives was evident,” said Arash Asady, Bits of Stock CEO, “Many of Strata's members could benefit from this partnership in ways that can change the financial habits and economic trajectory of their lives, and that's exciting and impactful.”
Strata’s Stock Rewards Checking product provides members an array of transactional opportunities as well as customer access to a full-service brokerage account, all powered by Bits of Stock through Strata’s Q2 digital banking platform.
Nearly two-thirds of young adults believe the stock market is a great place to build wealth and invest, but many are not participating, according to the latest Youth & Money in the USA poll by CNBC and Generation Lab.
“Strata Credit Union couldn’t be more excited to provide our members with a simplified way to invest in their long-term financial well-being,” Ivie said. “Stock Rewards Checking helps to overcome the often intimidating barrier to starting a portfolio. With this technology, we can empower members financially with the opportunity to micro-invest and build wealth.”
A study conducted by NYU Stern School of Business and Bits of Stock found that offering stock rewards yields a 16x ROI for issuers, making it 50 times more effective than cash back. The same study found that customers increased spending frequency and amount by more than 20% with a card from which they can earn stock rewards.
About Strata Credit Union
Established in February of 1949, Strata Credit Union is committed to fostering financial inclusion, education, and prosperity for the Kern County community. Headquartered in Bakersfield, California, Strata Credit Union continues to take pride in its commitment to serving and improving the financial well-being of each member. Please visit www.stratacu.org for additional information.
About Bits of Stock
Bits of Stock enables credit unions and community banks to reward and convert points into fractional shares of stock, driving deposits, non-interest income, and retention. Please visit www.bitsofstock.com for additional information.
Contact:
Kelly Fargo
VP of Community Relations
kelly.fargo@stratacu.org
Arash Asady
CEO
arash@bitsofstock.com
