Last week Ollie Purdue turned 22-years-old and already RBS is attempting to partner with him on Loot Bank, the startup idea (the product hasn’t even hit the market yet) that’s going to change college forever, by ensuring broke ass college students aren’t always so broke. Ollie Purdue’s Loot Bank might not sound all that revolutionary at first, but trust me, after reading up on it just a little bit you’ll understand why this is going to transform college campuses and the spending of college students worldwide.
Loot Bank is a smart money management app for students, linked to a pre-paid card. It’s launching in two weeks to coincide with the start of the new university year.
“The way it works is when you open it up it already tells you how much you can spend,” explains Purdue, who turned 22 last week. “It’s based on total balance, outgoings, and projected spending.”
“This is the thing with students, every three months they’ll get $1,580, or $2,370, so the total balance is less important because if I open up the app it could say I’ve got $3,160 but I don’t know if that’s $15 a day or if I’ve got loads of money. For instance, I went out and bought a TV when I got my student loan and got sky-diving lessons. Actually I only had about $31 a day.”
It sounds so simple: an app that tells you exactly how much you can spend at any given time based on how much incoming/outgoing money is coming/going from your bank account. Like I said, it’s not the most revolutionary thing in the world, but at the same time, it is. Banks have an incentive for you to overdraft and owe them money, or to keep massive sums of money built up on your credit card. They don’t want you to be learning solid spending habits, they want you spending with reckless abandon, and thus there’s no reason at all major banks would’ve ever implemented a feature such as this. Loot Bank’s swimming against the current, and it’s going to pay off.
Purdue built a prototype of the app with only three working buttons and took it to potential investors, one of whom was Nick Wheeler, the founder of shirtmaker Charles Tyrwhitt.
“I showed him the app,” Purdue remembers. “He actually took it off my hands at one point and he pressed the right button luckily.”
Loot Bank ended up raising £200,000 from Wheeler and 7 city bankers.
Loot’s pre-paid card will launch in partnerships with LSE, UEA, and Bath initially, as well as smaller marketing drives in universities like Buckinghamshire. Loot is targeting international students and is hoping to sign up 1,000 this year.
Purdue explains the difficulty international students face banking in the UK, saying: “You can’t open [a bank account] before you get here and even when you land it can take weeks or months.”
“We can sign a user up on our card on our KYC [known your customer, an anti-fraud and money laundering procedure] process, but impose a limit of £2,000 ($3,160), so they can still use their card on the day they get it even if we don’t know things like their address.
I don’t know about you bros, but if you were to poll all of my friends from college I’d say that ‘money management’ would rank at the top of skills never taught/learned prior to college, and the skill that most college kids were most in need of. They say that parents with shrewd spending/saving habits are the best at imparting those skills upon their children, but as millennials worldwide have noticed: the Baby Boomer Generation didn’t save any $$$ at all and is the biggest financial burden our country has ever seen. That’s why we need to learn and develop these shrewd spending/saving habits ourselves, and with Ollie Purdue’s Loot Bank we just might succeed in not making our nation go broke like the Boomers did.
I’m usually the most skeptical person around when it comes to KickStarters, but if there was a LootBank KickStarter I’d 100% toss in some $$$$ to get in at the ground floor. I think what 22-year-old Ollie Purdue and the rest of the Loot Bank team is doing is going to completely blow up over the next few years, and we’ll enter an age in which college students aren’t completely broke after the first month of Fall Semester. This is how I imagine Ollie Purdue and the rest of Loot Bank will end up in the next few years:
For more on this story click on over to Business Insider to read up on the potential RBS partnership and Series A fund raise on the horizon.