“Can a youth-focused fintech become the default financial operating system for families by combining debit cards, allowances, and AI-driven financial education on a sponsored-bank infrastructure?”
Founded in 2022, Modak set out to build a financial operating system for families, initially centered on teen debit cards, allowance management, and cashback rewards. The platform evolved to emphasize financial literacy and AI-powered tools for youth and family spending. A major infrastructure milestone came in mid-2025 when Modak transitioned its sponsor bank relationship from Lewis & Clark Bank to Legend Bank, N.A., signaling a deliberate move toward greater banking stability and direct bank partnerships as the company scales.
Modak discloses Legend Bank, N.A. as its banking provider, according to the Embedded Finance Index 2026.
Modak does not disclose a bank charter of its own; its banking services are provided through Legend Bank, N.A..
The Embedded Finance Index 2026 maps 3 layers in Modak's stack: Banking / BaaS (Legend Bank, N.A.); Sponsor bank (Legend Bank, N.A.); Transaction enrichment (Dosh).
Modak was founded by Madhu Yalamarthi and is founded in 2022, headquartered in Menlo Park, CA, USA.
Modak has raised $13.8M in total (latest round: Seed).
Get a read on where your own stack stands against Modak and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.