Over slices at the East Village pizza place where he often takes meetings, Acorns CEO Noah Kerner made the case for an unusual idea: the fintech industry's biggest problem isn't access to capital, but the mindset around it. He said that fear, bad motives and thoughts that wealth can be built quickly, distort the way ordinary people think about saving and investing. Kerner's answer was to “set the goal first and get the business next,” he told the Observer.
Acorns, founded in 2012 by father and son team Walter and Jeff Cruttenden, is best known for its Round-Ups feature, which automatically invests leftover change from daily card purchases. Since then, the company has expanded into retirement accounts, checking and savings, baby products and innovative money management tools. It says it has helped more than 14 million clients and helped them save and invest more than $30 billion. “I intend to build businesses that do well by doing good,” said Kerner.
Kerner joined Acorns two months after the company was founded as an advisor, investor and board director before becoming CEO in 2014. Before that, he spent years in hip-hop and nightlife, worked as Jennifer Lopez's stage DJ at one point and founded Noise, a creative agency aimed at Millennials. Today, he runs one of the largest consumer subscription services in the US Acorns, mainly backed by PayPal and Comcast, is expected to be worth $2 billion in 2022, after spending the plan to go public.
Kerner says his anti-hype philosophy shapes everything from Acorns' subscription model to its refusal to offer trading. It is also reflected in a new round of products and marketing: Money Manager, launched in October 2025, automatically separates deposits from all savings, retirement, spending money and investments; “Ask Acorns” is an AI-powered chatbot for education and support; and, in March, Acorns unveiled a “Compounding Vending Machine” in Chicago designed to show what one dollar can be worth over 25 to 35 years.
The Observer spoke with Kerner in March about his relationship with money, why he thinks much of fintech still encourages self-destructive behavior, and where he sees Acorns going next.
The following discussion is edited for length and clarity.
What started your relationship with money?
It can be a father's work and understanding that there is something in the intersection of finance and social service. He worked at NatWest in what was called Community Development.
I started collecting and selling baseball and basketball cards at a very young age. I probably started when I was 10, 11. That was my first experience of understanding how to make money and that different things have different values. I loved watching the stats go up and the corresponding increase in the number of cards.
When I was 17, I worked in the summer as a bank employee. That was my first experience of understanding the psychology of money and how money makes people feel.
And around the age of 16 or 17, I started making real money as a hip-hop DJ at nightclubs and parties in NYC.
How did you go from hip-hop and nightlife to fintech?
There were three chapters in my career. There was a creative chapter: DJing, turntableism, hip-hop nightclubs. I have worked with different artists. I was a stage DJ for Jennifer Lopez. That was a different life. Then, at the age of 21, in the second chapter, I started three companies in the creative industry, one of which became the leading agency for product development and marketing in the young adult market.
But somewhere in there, I got this strong feeling that I wanted to work only on things that have a big impact and serve the community in a meaningful way. I thought: What pressing problems do we face? Financial empowerment, wealth inequality, health, education and the environment. If you get to choose what you're working on, why not work on these things? I decided from then on that I would put the goal first and find a business next. So I've been focusing on financial development and literacy in this chapter of work with Acorns and other startups. Back to purpose first, our central mantra at Acorns is “your money first, ours next.”
How does that philosophy shape the way you use Acorns?
I have these words in my mind that my mother gave me when I was young. One of them “kept silent and let the work speak.” Another, strange thing is, “you didn't go into business.” But that is one of the most influential pieces of advice that has guided my approach to business. I aim to build businesses that do well by doing good, putting consumers' interests first.
This is at the heart of all our decisions at Acorns. For example, we chose a subscription price with great intent because it creates alignment in an industry that is often lacking. In finance, products are almost always about the company first, and the customer second. Signing up is easy: here's what you get, here's what you pay. It's obvious. There is alignment. We avoid money-making practices that often get people into trouble, such as borrowing and trading. We focus on helping the customer to invest in the future. I strongly believe that the roots of integrity can be traced back to the business model.
Where do you think the fintech industry is failing the average person?
Promotion of get-rich-quick schemes, from prediction markets to crypto trading. We don't believe in quick hits. We don't believe in shiny things. We don't believe in the hype. We are a company that wins slowly and is strong in the race. We do not offer trading. We would have a lot of money if we got it. That's a tough line.
Who is Acorns designed for?
Everyday Americans. Middle class. We very deliberately do not serve the rich.
WLife is not created by one decision. Thousands of small decisions made over time. Patience, commitment, a small investment, years of dedication, and being smart with money. That is what is needed. If you think it's the other way around, you're dreaming.
Even if you don't have a lot of money, small investments add up over time. We do not advise anyone to use Acorns for two months and then stop. It's about learning and building, saving and investing for the long term. Our most important metric is retention because we focus on people who stick with it. Do not share publicly [the retention rate]but very good.
What do people misunderstand about money?
That money is safe. That's not the case. You lose money due to inflation. Another misconception is that when the market goes down, you lose money. You only lose money if you take your money out of the market after it has gone down.
The No.1 emotional driver of bad money decisions is fear. I had a lot of panic attacks in my 20s. There were worries about money in the house when I was growing up. I remember what it was like, and I remember what kept me from making good, long-term decisions. Everything was fear. Every time I operated on that area, I regretted it later.
He has said that Acorns is trying to build empathy in the company, even at the level of language. Why do you ban the word “user” when talking about customers?
They are not cells in a spreadsheet. They are human beings. There is a psychological ambiguity when you call someone a user. At Acorns, they are not there. They are here. And I want you to hear how our customers feel: their pain and their fear.
Tell me about Acorns' latest products, such as the “Money Manager” and the vending machine in Chicago.
Historically, Acorns has offered different accounts, but the “accounts” are the construction industry. From a consumer's perspective, that's complicated. “Money Manager” it sets up all accounts for you by default. Every dollar you deposit, we automatically deliver it to the right place. The idea is to make sure every dollar works.
A typical vending machine takes your money and gives you Doritos. Our vending machine does the opposite. You put in a dollar, choose a horizon, and it shows you what your dollar will be over time. We give you money right away, too, and the same amount is available in Acorns when you sign up. It's a way to make the combination feel real. I'm always thinking about how to bring that idea to life, because compounding is the first step in converting someone to long-term investing.
What are you most excited about next?
Family finances. It is the largest and most open market. Money is a family matter. Family dynamics create long-term financial problems: anxiety, shame, lack of communication, parents not teaching their children, and parents not even knowing. How to teach their children. That is both an impact opportunity and a business opportunity.
Acorns was very close to going public in 2021 in a deal that valued the company at $2.2 billion. Why was that plan scrapped? Is an IPO still part of your goal?
Yes, it is still a wish. It wasn't the right time. The market must make sense; that is always a moving target.
There are compelling things about privacy, but many people have invested in Acorns, money and time. I look at my team and feel the responsibility to deliver for them. They support the company. I want them to be rewarded for that. That is one of my main responsibilities.
What have you learned about yourself from being a CEO?
What I think about leadership is that it is a great journey into your soul if you are awake while leading. I learned that I am complicated. I am compassionate, but also incredibly demanding. I care about them, but I'm also strict. I want the best for people, and the way it manifests is pushing them past every possible previous limit. I'm probably not as picky as a CEO would get.
