Let’s Get Set, a fintech company founded by Clare Herceg, is tackling the financial challenges low—and moderate-wage households face. Because of their unique needs, traditional financial institutions often overlook this demographic.
Based on extensive user research, the company’s innovative savings account allows borrowers to access emergency funds without falling into a debt trap. This approach addresses a critical need highlighted by national data on financial shocks and inadequate savings.
Fintech For Financial Shocks Among Low- to Moderate-Wage Earners
Clare Herceg launched Let’s Get Set in 2020 after graduating from MIT’s MBA program. With a career focused on economic mobility, Herceg wanted to create financial products for low- to middle-wage households because mainstream financial institutions have overlooked their needs.
The original idea came from a classmate who pointed out that these families were missing out on billions in tax credits. Let’s Get Set initially offered a fintech solution that referred people to free tax preparers. The first round of data found that the service was helping some people access tax credits, but it wasn’t completely solving the problem.
“The MyFriendBen team and our partners at Let’s Get Set came together to understand the consumer behavior when we automate eligibility for key benefits like health insurance, rental assistance, and child care through tax filing,” Elise Henson, executive director of MyFriendBen said. “Clare’s vision and her team’s ingenuity helped illuminate what is possible for families when we can scale technologies that help everyday Americans receive the support they deserve.”
Herceg’s “aha moment” came when she realized that the seasonal tax product, while helpful, wasn’t the best growth engine. The company shifted to focus on a year-round fintech product that would address the widespread problem of emergency expenses. Sixty percent of U.S. households experience at least one financial shock each year, with 32% experiencing two or more, according to the Pew Charitable Trusts.
Nearly 40% of adults would have difficulty covering an unexpected $400 expense due to inadequate savings, according to the Federal Reserve’s Economic Well-Being of U.S. Households report. This shortfall underscores the financial vulnerability of many American families. These shocks can include unexpected expenses like car repairs, medical bills, or income disruptions such as job loss or reduced work hours.
This economic fragility led Let’s Get Set to develop a savings account that allows users to borrow against their savings at a reasonable interest rate and with a more extended payback period than traditional options. With a 12% APR and repayment terms ranging from two to 12 months, this product provides a financial safety net for emergencies without trapping users in a cycle of debt. The account also incentivizes saving by offering a 5% APY.
“As an impact-driven investor, we recognize the substantial positive impact that Let’s Get Set has already made for low-income families, and are thrilled to partner with them to scale and deepen that impact with new offerings and support,” Heather Matranga, VP of Impact Investment at Village Capital, and an investor.
The target market for Let’s Get Set is households making less than $100,000 a year, with a focus on mothers, particularly mothers of color. The company has seen significant interest, with 30% of people who visit the landing page signing up for the waitlist, commented Herceg. Early pilots have also shown that users find the product valuable and want to continue using it.
“When I met Clare, I was a first-time mom, completely new to everything and for lack of a better word, lost,” Cynthia Garzon, a user, said. “Let’s Get Set helped me gain control financially, understanding what I was supposed to receive and kept me accountable with the savings tool.”
Building Trust In Financial Services For Underserved Communities
One of the main obstacles Herceg faced was building trust with low- and middle-income communities, which often distrust financial institutions. Low-income households are less likely to use mainstream financial products and services. They are more likely to rely on alternative financial services, such as payday loans and check cashing businesses, which often have higher fees and interest rates, according to the Federal Reserve Board’s Survey of Consumer Finances. The use of high-interest loans suggests an expectation of being rejected.
The inability to meet minimum balance requirements was the primary reason people gave for not having a bank account, followed by a lack of trust in banks, according to the 2021 FDIC National Survey Unbanked and Underbanked Households. These barriers can contribute to distrust and make it difficult for these households to build financial security.
To overcome this, Let’s Get Set partners with healthcare organizations, leveraging people’s trust in nurses and healthcare workers, to reach potential users. “The partnership between Let’s Get Set and the National Service Office for Nurse-Family Partnership (NFP) and Child First has helped families learn how to navigate the tax process successfully and receive an estimated total of $13.1 million dollars in tax refunds and credits,” said Jane Pray at NFP. “This knowledge has been especially helpful to families who otherwise would not have filed taxes at all or who felt they had no choice but to pay predatory tax partners.”
Another challenge Herceg identified was the initial focus on a seasonal tax product. The seasonality of the service made it difficult to rapidly test and learn, hindering the company’s ability to scale effectively. Recognizing this, Let’s Get Set pivoted to develop a year-round product focused on emergency savings, allowing for more consistent user engagement and a more profound impact on their financial well-being. Through extensive user research and interviews, Let’s Get Set is developing a unique savings account that allows users to borrow against their savings.
“Being a solo founder has been challenging,” said Herceg. “I have been lucky to build a bench of advisors who support me…and I am building a great team.” She is grateful to her undergraduate (Princeton) and business school networks that have been enormously helpful in connecting her to people who can help her connect to capital and expertise.
“I don’t have lived experience as a low- to moderate-wage earner,” said Herceg. “There’s less known about their needs.” As a result, her guiding principle in developing solutions is to prioritize solving users’ financial problems rather than locking them into a specific solution. She emphasizes user research and feedback, seeking to understand the target market’s needs and build products that truly address their pain points.
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