Frank

Frank is a company developing a financial planning platform for students.

History

2023: JP Morgan sues Frank startup founder Charlie Jevis

The idea behind the project is to help get student loans. By 2019, Jevis raised $16 million in investments and was a star.

In 2021, Jevis told JP Morgan that more than 4 million people used Frank's services. According to JP Morgan, the real number of clients was about 300 thousand, and Jevis and Development Director Olivier Amar created a fake list of more than 4 million people. To do this, Amar bought data on 4.5 million students from ASL Marketing for $105 thousand. And then a professor of computer science from the College of New York for $18,000 made 4.265 million fake customer accounts with addresses, phones, mail addresses.

In 2021, JP Morgan bought the startup, and Jevis and Amar went to work in the bank. After the deal, they received $15 million and were entitled to bonuses - $23 million.

JP Morgan sent marketing letters to 400,000 customers. Only 25% of the letters were delivered, and about 1% opened them. After that, the bank sued the founders of Frank.

2021: JPMorgan bought Frank

On September 21, 2021, JPMorgan announced the acquisition of Frank's platform. Its participants did not disclose the cost of the transaction. Later it became known that the amount amounted to $125 million.

The company acquires all of Frank's business, including the rights to Easy FAFSA products, Classfinder College Course Marketplace, Scholarships & Employment tools to financial to education , and career and career content.

We want to build relationships with our customers throughout our lives. Frank offers a unique opportunity for deeper engagement with students. Together, we will be able to expand our opportunities for students and their families by helping them financially prepare for college and other important moments in their future, said JPMorgan Executive Director Jennifer Pipshak.

JPMorgan acquires Frank

As of September 22, 2021, the Frank platform serves more than 5 million students in more than 6 thousand higher educational institutions throughout the country. Their online portal allows students to apply for financial assistance within minutes and sign up for available online courses. Frank's solutions are uniquely focused on students aged 17-24, adult students aged 24 +, parents and caregivers, and low- and middle-income families.

The deal is expected to accelerate JPMorgan's solid foundation for students, including products, content and recommendations for students of all ages, with branches and ATMs on or in close proximity to more than 300 college campuses nationwide. These departments offer students and their families financial health resources and advice, such as budgeting, starting a savings plan, or opening a first checking account.

The Frank brand will continue to be led by Frank founder and CEO Charlie Jevis. She will join the bank as head of student solutions on the digital products team.^[1]

Notes