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Exclusive: Ribbon raises $2.7M to automate inheritance claims

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Feb 15, 2024
Illustration of a piggy bank with a blue ribbon, as if it is a prize pig.

Illustration: Maura Losch/Axios

Ribbon, which helps banks automate inheritance claims, raised $2.7 million in pre-seed funding led by One Way Ventures and Haymaker Ventures, the company tells Axios exclusively.

Why it matters: The average estate costs more than $14,000 to settle and takes over a year to finalize.

How it works: Ribbon offers a SaaS platform for financial institutions like credit unions and regional banks to help process inheritance requests for their customers.

  • Its white-labeled "digital estate center" is added to the bank's website and collects all necessary information and documentation from clients to process estate claims.
  • On the back end, the platform provides a ticketing system for bank employees to track and manage claims, as well as suggestions for marketing new services to clients.

Between the lines: Banks can reduce operational costs and the time spent processing claims while using the information to retain younger clients receiving an inheritance.

  • Ribbon enables financial institutions to add estate planning services, like the formation of trusts, to increase bank revenue.
  • For bank clients, Ribbon has a "find my inheritance" tool that automatically scans public databases and other financial institutions to find accounts and funds they didn't know about.

State of play: The U.S. is amid a massive intergenerational wealth transfer, with $84 trillion projected to be passed down from baby boomers to younger generations over the next 20 years.

  • However, few regional banks or credit unions have the resources to invest in building out similar offerings.
  • "You have a few financial institutions, which ... have the ability to make these investments, [but] the rest do not have the ability to dedicate time and resources to provide this," Ribbon founder Saeid Kian says.
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