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With every debit card swipe, TAB Bank clients earn fractional shares in brands they buy from

Earlier this year, Utah-based TAB Bank launched TAB Flow, a debit card that rewards customers with fractional shares of stocks every time they make a purchase. It's what the bank has dubbed spendvesting.

A free, basic account earns cardholders 0.5% stock rewards on eligible purchases from Amazon, McDonald's, Chevron, Walmart, Disney and Starbucks. For USD 5 a month, customers can earn 1.0% stock rewards on every eligible purchase, no matter where they shop. Those fractional shares are in one of twenty brands that reward directly in that company's stock when a purchase is made from them, or the reward value is evenly distributed among up to four additional company stock picks from a longer list, plus one ETF.

TAB Flow is facilitated by fintech Bumped, which enables financial institutions and brands to offer their customers fractional stock rewards instead of cashback or loyalty points. 

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TAB Bank's partnership with Bumped creates a no-fuss opportunity for consumers to acquire a simplified stock portfolio simply by doing their regular, day-to-day shopping. By earning fractional shares at regular intervals and at different prices, users also avoid the risk of trying to time the market.

The concept can function as an on-ramp to building additional assets, especially for people who don't have the time or knowledge to start investing on their own. In theory, it could help decrease wealth disparity. At last count, 56% of American adults own stock. But as The Motley Fool notes: "Stock ownership is split dramatically along racial lines, with white Americans owning 89.5% of stocks, with a total value of USD 36.15 trillion." Any attempt to narrow that gap is worth testing.

And Bumped doesn't just help consumers own a piece of the brands they spend with. Late 2021, Bumped teamed up with Moves — a financial app for gig workers. That partnership enables workers to earn shares in the platforms they power, including Uber, Lyft, DoorDash and Grubhub.