At a time when some Americans are being tempted to pour their savings into risky investments, the son of a Wall Street veteran is encouraging them to set aside more money.
Adam Moelis, whose father Ken Moelis runs investment bank Moelis & Co., has managed to attract new accounts worth almost $40 million in two months at his startup, Yotta Savings. The hook is that Yotta gives people a sweepstakes ticket for every $25 they save. A weekly drawing gives customers the chance to win between 10 cents and $10 million.
With 6,500 customer accounts, it still has a long way to go before it can catch up with competitors. Another banking challenger, Current, has gathered more than 1 million accounts since its 2015 founding. And several other rivals are entering the fray. Additionally, millions of people signed up this year with