From Runway to Fintech: The Inspiring Journey of Katrin Kaurov and Aleksandra Medina
For many, the world of fashion modeling is a glamorous escape filled with high-profile events, designer outfits, and the thrill of the runway. However, for Katrin Kaurov, 28, and Aleksandra Medina, 26, the allure of modeling has transformed into a mission to empower their generation through financial literacy. The duo has traded their catwalks for boardrooms, launching a fintech venture called Frich in New York City in 2021. This innovative app is designed to bridge the gap between financial institutions and Gen Zers, offering a unique platform for young users to gain insights into budgeting, investing, and managing student loans.
The Birth of Frich: A Personal Journey
The inception of Frich is deeply rooted in the personal experiences of its founders. Kaurov, the company’s CEO, hails from Tartu, Estonia, where she began her modeling career at the tender age of 14. By 18, she had worked in over 20 countries for top brands. However, the glamorous lifestyle came with its challenges. “I had to become financially independent really early on,” Kaurov reflects. She quickly identified a significant issue within the modeling community: many young models are paid inconsistently and often in cash, leaving them ill-equipped to manage their finances.
Medina, Frich’s chief product officer, shares a similar story. She began her modeling career during a gap year while working as a brand strategist at McCann. Originally from Riga, Latvia, she received a full scholarship to NYU Abu Dhabi, where she met Kaurov. Their friendship blossomed, and they soon realized they had a shared vision for addressing the financial struggles faced by their peers.
Understanding the Financial Landscape
Despite their diverse backgrounds and experiences, both Kaurov and Medina felt overwhelmed by the complexities of personal finance. “Even with all those experiences, we still felt clueless about building credit, figuring out how much is normal to spend on social lives, and whether we were ‘behind’ others financially,” Kaurov admits. The internet, rather than providing clarity, often added to their confusion. “We were bombarded with ads from financial institutions that felt completely irrelevant to us,” she explains, highlighting the disconnect between traditional financial advice and the realities faced by young adults today.
This realization sparked the idea for Frich. The founders wanted to create a platform where users could anonymously share their financial habits and insights, allowing others to learn from their experiences. “That’s when we realized that money isn’t just about budgeting or investing. It’s woven into every decision we make in life,” Kaurov emphasizes.
The Mechanics of Frich
When users register for Frich, they input personal details such as their income, university, and ZIP code. This information allows the app to group users into cohorts with similar profiles, enabling them to access tailored insights. For instance, an NYU student on a scholarship can anonymously view how other scholarship students manage their finances, including savings, internship pay, and spending habits.
Kaurov explains the app’s dual purpose: “For financial institutions, Frich becomes the perfect gateway to college students, connecting them with the right products and advice exactly when they need it.” This strategic approach not only fosters financial literacy among young users but also builds lasting relationships between them and financial institutions.
The Road to Success
The journey to launching Frich was not without its challenges. Initially, Kaurov and Medina had little more than a name and a dream. Their breakthrough came when Mastercard reached out to them for a partnership. “We didn’t believe it was real at first and didn’t even respond to their first email,” Kaurov recalls, highlighting the unexpected nature of their success.
Both founders emphasize the importance of networking and building relationships in the entrepreneurial world. Kaurov advises aspiring business owners to engage in conversations long before they need to raise funds. “Have as many conversations as possible, start building relationships way before you need to raise, so you can build credibility with investors,” she suggests. Medina echoes this sentiment, encouraging young entrepreneurs not to let their age or perceived lack of experience deter them from pursuing their dreams.
Lessons Learned Along the Way
Kaurov and Medina have learned valuable lessons throughout their entrepreneurial journey. They stress the importance of resilience in the face of rejection. “A ‘no’ doesn’t mean it’s a no forever — it’s just a step before it becomes a ‘yes,’” Kaurov advises, sharing that their most significant investors initially turned them down multiple times before becoming their strongest supporters.
Medina emphasizes the importance of hiring talented individuals who can contribute to the company’s growth. “Hire people that are smarter than you, create things you’ve never thought of before,” she encourages. This philosophy not only fosters innovation but also ensures that the company continues to evolve beyond its founders.
The Power of Partnership
At the heart of Frich’s success is the strong partnership between Kaurov and Medina. Their friendship, which began eight years ago in Abu Dhabi, has been a cornerstone of their entrepreneurial journey. “Pick a co-founder you’re willing to go through everything with,” Kaurov advises, highlighting the importance of choosing a partner who shares your vision and values.
As they continue to navigate the challenges of building Frich, Kaurov and Medina remain committed to their mission of empowering young people with the financial knowledge they need to thrive. Their journey from the runway to the fintech world serves as an inspiring reminder that with determination, resilience, and the right partnerships, it’s possible to turn personal experiences into a powerful tool for change.