Several months ago I posted this review of Beam, a Fintech app that’s been getting a lot of buzz for the high interest rates of 2%-4% that they’ll be offering customers.
Most big banks and financial institutions offer interest rates of less than 1%, so the possibility of a 4x return is appealing to say the least!
But is Beam too good to be true? The service was supposed to launch in October 2017; we’re now pushing February 2018 and we still don’t know much about Beam.
So I reached out to the company with several questions that many of you have asked me and I’ve got some answers. What follows is Beam’s word-for word responses to my questions (emphasis added in parts by me).
Table of Contents
Questions For Beam
- Beam was supposed to launch Oct. 2017. Can you tell us what caused this delay? Is there a new targeted launch date?
- When Beam launches, will you offer any of the following services:
- Direct deposit?
- Debit cards/checks?
- Bill pay?
- ACH transfers?
- Mobile deposits?
- What free features within the Beam app does a person need to use in order to climb from 2% to 4% APY?
- Can you clarify how that scale from 2%-4% will work?
- Is a mobile app the only platform for managing a Beam account?
- Will there be a desktop application?
- What does it mean to be a Beam Evangelist?
- Have all of the companies listed on your website as evangelists, including Forbes, New York Post, and Inc., endorsed Beam?
- Have any of your evangelists been paid a fee for their recommendation or for the use of their logo on your website? (paid either in cash, special affiliate commissions, or other remuneration)
Beam’s response: “Beam evangelists are generally media who have covered Beam or investors who have invested in us. More broadly, it extends into those who spread the word, write reviews, host podcasts, and contribute to our cause in any way, shape, or form. They range from influencers like yourself, Get Rich Quick’ish, to bigger publications whose journalists write or talk about Beam. You can find the articles from these publications simply by Googling them, and if you either can’t find or find something we don’t have, please let us know! We do not have any paid media coverage at the moment.”
PARTNERS & FDIC CERTIFICATE NUMBERS
- Who is the main US Bank (or banks) that back Beam?
Beam’s response: “Due to confidentiality reasons, we are obligated by our commercial partners to keep their names and FDIC certificate details private until Beam officially releases to the public. Once our service is live in a few months, we’ll be sure to share these crucial details so you can make an educated decision on whether or not to activate your Beam service. Hang in there! We can’t wait to share these super important details with you all!”
HIGH APY RATES
- The rationale for Beam’s ability to offer a high APY is essentially low overhead and that Beam is less greedy than other banks. Is that all there is to Beam’s ability to offer these higher interest rates?
- One of the questions and concerns I hear most is concerning Beam’s high APY. Frankly, many people feel that it’s “too good to be true.” Beam’s launch delay doesn’t do much to alleviate concerns that Beam is somew how not a legitimate company and that your services are too good to be true. Could you please address that?
- Can you clarify how Beam will make money?
- Will Beam be gathering customer data and selling it? If so, what information will be gathered and sold?
Beam’s response: “We will repeat this until everybody understands: Beam absolutely does not, and will not sell individual data and private information. Monetizing on user data without permission is not only against our core service belief that customers come first, it’s also a terrible business model to rely on to attract future Silicon Valley financial backers.”
- Is there any additional information that you’d like to provide? If so, we’d all love to hear it!
So there you have it. Sounds like Beam is launching to a limited audience in the spring of 2018, which is just around the corner. Based on the last delayed launch, I think it’s smart of Beam to not put a more firm date out there because, let’s be honest, delays happen.
I was quite pleased to hear such an emphatic response to the question ab0ut Beam selling customer information.
But what about you? Do you still have more questions, or are you satisfied for now? When Beam launches do you plan on transferring any of your cash over?