This week, we chat with Rowland Hobbes, Founder and CEO of Stake. Rowland, who will be speaking on the housing track at the upcoming Ownership Economy Summit 2025, offers insights into how to use modern fintech to accelerate renter wealth building and give more people upside in ownership through renting.

In this episode, we cover:

• The pivotal moment Stake's strategy was shifted from offering renters equity to focusing on immediate cash back will be discussed. It will be revealed how direct feedback from renters indicated that for many, "it's the money, stupid"—implying that current financial relief for essentials like groceries, medicine, and childcare was considered far more critical than future equity. Initially, Stake had explored giving equity to renters, envisioning ownership through their residence, but this approach did not resonate with renters in market testing, partly due to a lack of trust that the equity would materialize and a desire for immediate utility.
• How an innovative, mutually beneficial business model was developed by Stake, encouraging landlords to fund cash back for renters, will be explained. Drawing inspiration from loyalty programs and the Costco membership model, it will be shown how properties can achieve better performance, with delinquencies reduced by 44% and renewal rates increased by 15%, through investing in their renters' financial well-being. This approach converts existing landlord spend, such as "one month free" offers, into cash back for renters, proving more effective than negative behavioral incentives like late fees.
• The broader vision for "tenant equity vehicles" and embedded financial services that empower renters beyond just paying rent will be presented. How renters are helped by Stake to build credit, save money, and access fair banking will be discovered, fostering a movement towards institutionalized financial savings for renters, akin to 401ks or 529s. The evolution of tenant equity vehicles, including profit sharing in the form of cash back, will be detailed, highlighting collaborations with entities like Enterprise Community Partners and government initiatives in Colorado.

Invaluable lessons for anyone interested in mission-driven ventures, financial innovation, and addressing systemic wealth gaps are offered in this conversation.

Rowland Hobbes will be speaking at the Ownership Economy Summit in New York on October 7th, 2025! Grab your ticket here, 20% listener discount is active until the end of August: https://www.ownershipeconomy.com/registration