Karat Financial Launches Business Banking for Creators

Karat Financial, known for its creator-focused credit cards, now offers business banking services. Partnering with digital bank Grasshopper, Karat expands its financial tools to better serve the creator economy.

Traditional banks often struggle to understand the unique financial landscape of content creation. This makes it difficult for creators to access essential services like business credit cards and bank accounts. Karat aims to bridge this gap.

Addressing Creator Financial Challenges

Co-founder and co-CEO Eric Wei explains that creators are businesses, but traditional banks often fail to recognize them as such. This can lead to difficulties in securing credit and managing finances, even for highly successful creators.

Karat has already provided $1.5 billion in credit, with an average credit limit of $25,000 per creator. Recognizing the need for broader financial services, Karat developed its business banking product.

Karat's Business Banking Features

Karat offers two business banking tiers:

  • A free, FDIC-insured business checking account with automated tax planning, designed for independent contractors.
  • A premium account ($20/month or $35,000 minimum balance) offering 2-3% APY on checking, free wires, enhanced customer support, and upcoming AI bookkeeping.

Karat recognizes that creators often maintain higher checking account balances due to industry instability. The competitive APY on checking accounts addresses this specific need.

Wei emphasizes Karat's commitment to educating banking partners about the value of creators as customers. This helps ensure creators receive the financial services they deserve.

Future of Karat's Creator-Focused Services

Karat plans to expand its offerings to include additional business services like insurance, including healthcare options. The company's mission is to build a robust financial safety net for independent earners.

Karat, a startup building financial tools for content creators, raises $70M

Karat Financial Product Mockup

Image Credits: Karat Financial