Will Peng, CEO and co-founder of Northstar on the VatorNews Innovation podcast

Northstar democratizes wealth management for employees

Will Peng, CEO and co-founder of Northstar joins Bambi Francisco Roizen on the VatorNews Innovation podcast. Northstar has raised venture financing from GGV Capital as well as PayPal Ventures, Thomson Reuters Ventures, and Canvas Ventures. 

Financial well-being can affect all areas of our lives - especially our physical and mental health. One survey found two-thirds of Americans are living paycheck to paycheck. Paying higher prices for gas and groceries is a big part of it. Higher interest rates also lead to higher credit card debt. It’s no wonder that financial stress is at an all-time high, according to a report.

One study conducted by Morgan Stanley added up the number of hours financially-stressed employees think about personal finances while at work. It’s so much time, employers are effectively paying their employees $4k more a year (based on the average American hourly wage). 

Northstar is having success taking away some of that financial burden from both employers and employees. 

Here are some highlights:

1:30 - Will talks about his background as a product designer-turned VC and the companies he backed that helped him learn about the abundance of point solutions in fintech. He talks about how he graduated with college inundated with debt and experiencing the stigma of feeling ignorant about personal finances as a young adult.

5:30 - Will talks about the nature of the problem he's trying to solve and the company's modular approach to financial seasons people experience.

6:36 - Will talks about how the economy has affected his business, and the many changes in the last several years that has led to an even more complex personal finance environment.  

9:50 - Will dives into Northstar and the various services offered to employers as well which employers the company works with, such as Snap, AirBnB to Workday and Amtrak.  

11:32 - Will covers the various reasons employers are compelled to use the platform and how benefits like Northstar are an attractive benefit that appeals to workers both from a recruiting and retention standpoint. This is important since people who are financially stressed are 2x more likely to look for another job.  

17:10 - Will talks about the different financial situations in which the employee is engaged, from managing a retirement plan to understanding how to manage equity-based compensations, raises and bonuses. Will said 46% of all employees engage with our service. We’ve been able to systematically know when people need our service. 

20:00 - Will talks about how the company measures well-being and success. One metric is whether a person is increasing his/her retirement contributions or paying down debt. He said that 69% of recommendations are acted upon.  

22:45 - Will talks about the difference between Northstar and a personal human wealth manager.