Forbes - How True Link's Visa Debit Card Keeps Grandpa From Blowing His Nest Egg
The Finex Visa card, offered by True Link Financial, is a prepaid debit card designed to help manage the finances of elderly or vulnerable individuals. It allows a trusted administrator to monitor transactions and set spending limits, providing a balance between independence and financial protection. This card is particularly useful for preventing scams and unwanted purchases, as it can block charges from telemarketers and known fraudsters. True Link Financial, a fintech company recognized for its growth and profitability, also manages special needs trusts, ensuring that funds are used appropriately without affecting government benefits. The company charges a monthly fee for the card and a percentage of assets for managing trusts, offering expertise in handling special needs finances.
Key Points:
- The Finex Visa card allows administrators to monitor and control spending for elderly individuals, preventing fraud.
- True Link Financial offers a prepaid card that blocks unwanted charges and alerts administrators of unusual spending.
- The company manages special needs trusts, ensuring funds are used without affecting government benefits.
- True Link Financial has been profitable, with $2 million net income on $30 million revenue in 2024.
- The company charges a $12 monthly fee for the card and 1% of assets for managing trusts.
Details:
1. 🎬 Introduction to Finex Visa Card
- The Finex Visa Card is a newly introduced product aimed at providing flexible financial solutions.
- It offers competitive interest rates and no annual fees, making it an attractive option for cost-conscious consumers.
- Cardholders can earn 2% cashback on all purchases, providing a tangible financial benefit.
- The card includes robust security features, such as real-time fraud alerts and zero liability protection.
- Users can manage their account through a user-friendly mobile app, which enhances accessibility and convenience.
- The introductory offer includes a 0% APR on balance transfers for the first 12 months, appealing to those looking to consolidate debt.
2. 👴 Grandpa's Financial Dilemma
- In November 2020, Alana Parales received an emergency call about her 84-year-old father, a retired aerospace engineer living alone since 2006, who had suffered a stroke.
- After months in rehab and a group home, he continued to struggle with mobility and complex tasks.
- In April 2021, he moved to an assisted living apartment complex near his old neighborhood and friends, which was a good solution for his needs.
- The decision to move him was based on his ongoing mobility issues and the need for a supportive environment.
- His family considered factors such as proximity to friends, quality of care, and his comfort with the new living arrangement.
3. 🏠 Transition to Assisted Living
- The individual requires assistance with daily activities like cooking and managing medications but does not need constant supervision or skilled nursing.
- The individual is considering assisted living options that provide the needed support without full-time nursing care.
- A 42-year-old Economic Development specialist from Los Angeles manages her father's finances and care remotely, expressing concerns about his financial vulnerability, particularly to scams.
- The specialist seeks a solution similar to assisted living to better manage her father's spending and ensure his safety, emphasizing the importance of financial oversight in assisted living arrangements.
- Assisted living facilities typically offer tailored support services such as medication management, meal preparation, and financial oversight to meet the unique needs of residents without requiring constant medical supervision.
4. 💳 Prepaid Visa Solution
- A prepaid Visa debit card offers a solution for allowing financial control while maintaining oversight.
- Relatives or trusted administrators can monitor transactions and set spending controls on the prepaid card.
- Specific controls can limit the size and nature of purchases, such as blocking charges from telemarketers or known fraudsters.
- Administrators receive alerts for unusual spending or declined transactions.
- Both the cardholder and the administrator must consent to the arrangement, but no financial power of attorney is required.
5. 📈 True Link Financial's Growth
- True Link Financial, a San Francisco-based fintech firm established 12 years ago, was recently recognized on the Forbes Fintech 50 list for 2025, highlighting its mission-driven approach and substantial growth trajectory.
- The company has achieved profitability over the past two years, with a net income of $2 million from $30 million in revenue in 2024, showcasing effective financial management and sustainable growth.
- In terms of investment, notable backers include Coastal Adventures, QED Investors, and Santana Growth Partners, contributing a total of $60 million to fuel further expansion.
- During its last funding round in January 2022, amid a booming fintech sector, True Link successfully raised $12 million, securing a valuation of $144 million, reflecting investor confidence in its strategic vision and market position.