Finance baby!

ETFs, shares, pension provision - for many people, these are topics they've heard of before, but don't really know what they're talking about. The two founders of the Stuttgart-based start-up finance baby! now want to change this. With their educational platform for finance, which is specifically geared towards women, they want to give women more insight into the world of finance and encourage them to take their finances into their own hands. They tell us in an interview how it came about, what the fintech market in Baden-Württemberg is still missing and what the two would change if they were mayors of the Swabian metropolis.

How did you come up with the idea for your startup?

The idea actually came from a personal problem of my own during the first lockdown last year, as suddenly the topic of short-time work, layoffs and financial insecurity could be seen and heard everywhere. Denise was suddenly very afraid of being laid off and she realized that if this were to happen, she would barely have a buffer in her bank account to keep her afloat and far from that, she also had no idea about her finances at all. The topic was always something distant that you push away from you because it's so inconvenient and, after all, it's more fun to spend your money in the here and now anyway.

Denise started researching and looking for a solution that was descriptive, easily explained and most importantly in a way that would take away the fear of the topic instead of adding to it. However, there was absolutely nothing that would have been suitable and so, without further ado, she took the subject into her own hands by starting to talk to as many women as possible about money. She quickly realized that it wasn't just her, but pretty much every woman she talked to. Then it was clear: a solution had to be found - and if no one builds it, then we build it ourselves.

Why did you focus specifically on a female target group and what challenges does that present?

Offers in the financial sector are strongly geared towards men. For one thing, content is not presented in a comprehensible way, so it is often assumed that women already have prior knowledge, which is usually not the case. In addition, many of us still grew up with traditional role models and often still live in these role models ourselves: the man takes care of the money and finances, the woman stays at home with the children, has the lower income and leaves money issues to the man. This creates fear of contact with the topic and women do not even dare to deal with the topic themselves. If then however the case occurs that one suddenly no longer has the financial security of a man for whatever reasons, then one must concern oneself with the topic but does not know at all how and it lacks a starting point, which tells one exactly where one is to begin and which steps come then successively.

In many areas there is still no equality between men and women, and the same applies to money. For example, the gender pay gap is currently 18%, which means that women are paid 18% less than men for doing exactly the same job. Another example is the pension gap. Women receive on average 59% less pension. And this is due, for example, to the fact that women stay at home even more often to raise children and naturally earn less or nothing at all for this time. Here it lacks evenly equal rights. Women should get the same amount of money for the same work and not be treated differently just because of their gender. Or men should be allowed to take more parental leave.

Where did you meet as a team?

We actually met during Teresa's internship at Mädchenflohmarkt. Denise was leading the marketing team at the time and already realized during the interview that she really wanted Teresa on board. We had the cool and at the same time gigantic task of carrying out a major rebranding together and rolling it out on all channels. The collaboration on this project worked out so well and we just realized that we complement each other very well in our skills and characters.

How do you perceive Baden-Württemberg as a FinTech location?

Quasi non-existing. We hardly associate BW with FinTech, except for the Stuttgart Stock Exchange and the associated Stuttgart Financial initiative, which is currently building a really cool project to change just that. We think that extremely many FinTechs are migrating because especially the recruiting issue is hard, as well as finding investors in this area. BW is strongly focused on sustainability, which also makes it extremely difficult for us to be seen or even receive funding. As a female founding team, it's twice as hard.

What else would you like to see in Baden-Württemberg in the future?

Clearly better funding opportunities for early-stage startups that do NOT come from a university environment. We see it as clearly wrong to put so much money into university startups, because the founders often have no professional experience and the solutions are very theoretically structured and do not correspond to reality. Furthermore, something has to move in terms of support for women and female founders.

What tips would you give to other women who would like to found their own start-up?

Not to be put off and to show a human side to investors as well. We don't have to bend just to collect funds or look strong in front of a jury. Maybe that will bring us victory at one moment, yes. But in the long run, the one who benefits is the one who stays true to himself and is honest and open. And if that means showing insecurity in some moments or honestly saying you don't share an opinion, that's fine.

In the long run, the one who stays true to himself and is honest and open benefits

Denise, finance baby

Where do you see your start-up in three years?

finance baby! is a learning platform, a place of trust and a movement for more equality. For a long time we thought that the next step MUST be the foundation of a limited liability company and the first round of financing. In fact, we decided to stay independent for as long as possible and to bootstrap finance, baby! for the time being. We are currently fully focused on expanding our learning platform and thus revolutionizing the communication of financial knowledge for everyday life. For this purpose, we launched a crowdfunding on June 24, which will finance the professionalization of the platform. That means we focus on the development of the desired features, the content production of online courses for specific topics.

In the long term, we see finance, baby! as a place for women to meet - a home for women, so to speak. That's why, at the end of the year, we're launching finance, baby! Meet Ups all over Germany, where we will talk about financial topics without taboos and have incredibly great women as speakers. In addition, the first print products will be available soon, so that we can pick up women directly in their everyday lives and make everyday struggles easier.

Which woman is your biggest role model?

Denise: I have to be honest and say that I know some really, really great women, but I don't really have a role model. If I have to choose, I would probably name Christine Caine. Christine is the founder of A21, an initiative to fight human trafficking and forced prostitution. She has fought incredible battles, experienced great suffering, and yet has not stayed down, but has turned all that she has experienced into strength with which she helps others. For me, this is probably the most impressive life story I know.

Suppose you were mayor of Stuttgart for a day, what would you change?

We need to start seeing and understanding people instead of drawing up theoretical, perfect paths that only shine on paper.

Denise, finance baby 2021

Denise: I think I would move away from theoretical thinking and rules and let people have their say. In politics, decisions are often made and advice given that is far removed from the reality of our everyday lives. Whose employer did not respect home office regulations should complain about occupational health and safety and thus take action against the employer. But honestly, what 19-year-old young professional who can barely afford her rent and is afraid of losing her job would choose this path? This is just one example of many. We need to start seeing and understanding people instead of mapping out theoretical, perfect paths that only shine on paper. We need to listen. Participate in life to understand. We need to see and acknowledge struggles and provide a solution path for them.

Thank you very much for the interview.

About the founders:

After studying communication science at the University of Hohenheim, Denise worked as a marketing manager at the Stuttgart-based start-up Mädchenflohmarkt. Together with Teresa, who studied Advertising & Market Communication at the Hdm, she was responsible for a major marketing rebranding there. The two colleagues became friends and subsequently co-founders. Since October 2020, the two are now starting out together with Finance Baby.