Former NYSE CIO founds neobank that combines banking and investing

A former chief information officer of the New York Stock Exchange is unveiling his new neobank.

Fierce, which launched out of stealth mode on Wednesday, is available on iOS, with an Android version to come later this year. It combines banking and investing in one app. The cash account will yield 4.25% with no monthly fees. Users can also buy shares of stocks and exchange-traded funds, including fractional shares, and earn income through Fully Paid Securities Lending, which involves lending shares to institutional borrowers. 

Later, Fierce will launch a rewards credit card with 1.5% cash back on spending that will be automatically redeemed in the user's account, and cryptocurrency trading. 

"Our goal is to help users increase their wealth while enjoying an empowering, positive experience on the app," Rob Cornish, founder and CEO of Fierce, said in a press release.

Several other neobanks combine banking and investing in one service. For example, Stash's Stock-Back debit card lets users earn rewards in the form of stock of companies from which the customer is making purchases. Robo-advisor Betterment has expanded its banking capabilities over time. Robo-advisor Wealthfront has a high-yield savings account. Acorns offers banking services and several investing features, including a custodial account for kids and an individual retirement account.

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The app also uses artificial intelligence to generate a news feed for each user that is personalized to their portfolio and interests. It relies on Plaid to aggregate the user's other financial accounts so they can track their overall picture. Fierce will make money by taking a small fee on some of the transactions within the app and a small portion of the yield generated from the assets on the platform.

Banking services are provided by Cross River Bank, which is based in Teaneck, New Jersey, and has $8.9 billion of assets. Stock and ETF trading, including fractional shares and FPSL, is provided in partnership with DriveWealth, an embedded investing company.

Cornish, the founder and CEO, most recently spent time as the first chief technology officer at digital asset exchange and custodian Gemini Trust Company and as CIO of the NYSE. Other leaders on the team come from Gemini, challenger bank Chime and Nasdaq. 

Fierce also announced $10 million in seed funding, with participation from Pendrell Corporation, AP Capital, Wheelhouse Digital Studios, Space Whale Capital and several angel investors.