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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
This is the final post in our blog series about the savings technology horizon. Last week we discussed how savings technology works in goals-based PFM platforms and standalone, automated savings platforms. So far this week, we’ve looked at solutions targeted to Generation Z, crowdfunded savings technology, and advice-only solutions. Today, we’ll consider the final category– passive investing.
Savings tech isn’t sexy, and because it is often built into a larger, more robust product, sometimes it is difficult to notice. With the diversity of savers in this world, it only makes sense to have a wide variety of tools to help them save. Not all savings tools are built the same, and that’s a good thing. Missed the other five savings categories? Check them out:
Today’s category borders on wealth tech (okay, it is wealth tech). It is also, however, one of the major methods people use to set aside money for their future. I felt this series would be incomplete without considering a few examples of how passive investing helps people save.
A wide spectrum of companies, many of which will sound familiar, fall into this group. I’ve picked out three– Acorns, Betterment, and Prosper— to illustrate a variety of examples.
Tying in saving and investing with spending, Acorns recently launched a FoundMoney feature (pictured above). With Found Money, Acorns’ merchant partners deposit bonus cash into the user’s Acorns account. When consumers spend money with select companies, the brand to invest back. Acorns currently boasts 10 millennial-friendly brand partnerships, including Airbnb and Dollar Shave Club.
The company recently introduced a set of hybrid robo advice offerings with a personal touch; for a higher annual fee, users can opt for a robo advisory service blended with a certified financial planner (CFP). The service options range from a yearly call with Betterment’s team of CFP professionals to a one-on-one relationship with a financial advisor.
Prosper’s Auto Invest feature helps users take a “set it and forget it” approach to savingNext week, our analyst David Penn will pick up the series as he talks to industry experts and looks that the future of savings technology.
On Finovate.com
Around the web
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
This is part five of a six part blog series about savings technology. Last week we discussed how savings technology works in goals-based PFM platforms and standalone, automated savings platforms and so far this week, we’ve looked at solutions targeted to Generation Z and crowdfunded savings technology. Today, we’re examining advice-only solutions.
Missed the other five savings categories? Check them out:
The advice-only model works well as an employer-sponsored benefit. It’s a great way for businesses to encourage their employees to build up their personal savings (both short-term emergency savings and long-term retirement savings) in order to mitigate finance-related stress from the workplace. Offering an advice-only approach instead of a hands-on money management platform reduces the amount of on-the-clock time employees will spend managing their money.
Companies in this category work well in combination with other savings tools because they simply offer advice and do not serve as an account to hold or invest users’ money. These types have been around for at least a decade (think of Mint’s 2007 Finovate demo) but have increased the complexity of their analysis using big data and behavioral analytics. HelloWallet and Wealth Wizards both use complex tools, algorithms, and behavioral data to help users set aside the optimal amount of funds to meet short term and long term goals.
To recap, here are the types of savings tech we’ve seen so far:
Stay tuned tomorrow for the final category.
We saw some great stuff at FinDEVr New York last week; stay tuned for videos of the live presentations! If you missed out, check out FinDEVr London on June 12 & 13 during London Tech Week. Register today and save big time.
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This is part four of a six part blog series about savings technology. Last week we discussed how savings technology works in goals-based PFM platforms and standalone, automated savings platforms and yesterday we looked at solutions targeted to Generation Z. Today, we’re shifting our focus to crowdfunded savings.
Missed the other five savings categories? Check them out:
The crowdfunding model has existed for more than a decade and expanded significantly when Obama enacted Title II of the JOBS Act in 2013. It’s no surprise, then, that we’re starting to see this model creep into the savings realm to enable friends and family to contribute money toward others’ goals.
These solutions are like Kickstarter for savings goals. Having a platform where you can request money or simply advertise what you’re saving for (in the hope someone might contribute), helps remove some of the awkwardness from asking for money. Spiff and InSpirAVE are goals-based PFM platforms that enable friends and family to contribute to users’ savings goals.
The key to InSpirAVE is that the entire process– from dreaming of the goal, to finding the perfect product, funding and contributing to the goal, and even the point of purchase– takes place entirely within the InSpirAVE platform. The company’s founder and CEO Om Kundu, along with CTO Mark Krofchik, debuted at FinovateFall 2016 in New York.
To recap, here are the types of savings tech we’ve seen so far:
Stay tuned later this week for the final two categories.
This is part three of a six part blog series about savings technology. Last week we discussed how savings technology works in goals-based PFM platforms and standalone, automated savings platforms. Today, we’re shifting our focus to a younger generation.
Missed the other five savings categories? Check them out:
Generation Z, also known as the iGeneration, is defined as people born between the years 1995 to 2012. While this group generally doesn’t have much discretionary income (or any income at all), they are at a key age to learn how to manage their money.
Many banks understand the value of catering to younger generations– if you hook them young, it’s easier to score them as clients for life. Gen-Z targeted solutions work well for banks seeking easy client acquisition (a B2B model) and for parents who want to teach their children fiscal responsibility or are tired of giving hand-outs (a B2C model). Worldline and FamZoo both offer solutions for banks that appeal to kids as well as their parents.
With FamZoo, parents set the compound interest rate with which they want to reward their childTo recap, here are the types of savings tech we’ve seen so far:
Stay tuned later this week for the final three categories.
This is part two of a six part blog series about savings technology. Yesterday we discussed what savings technology looks like in goals-based PFM platforms. Today, we’re considering a far simpler approach– standalone, automated savings platforms.
Missed the other five savings categories? Check them out:
These types of companies debuted in 2011 with the launch of ImpulseSave*, which was acquired by Betterment in 2013. Since that time, a few other competitors have launched and are beginning to build steam with their Millennial user base.
These are mobile app-based savings tools that differentiate themselves based on simplicity. The solutions are aimed at millennials and use an algorithmic
approach to determine the best dollar amount and frequency to save on behalf of the user, based on their historical spend. They use a chat-based interface for client communication and account management. Two examples in this space are Dyme, which takes a strict B2B approach, and Digit, which offers a B2C app.
a smartphone to take advantage of it. All they need to do it set up an account with their primary debit card and text the commands. Want to set aside an extra $10? Text, “save $10.” Want to withdraw your entire balance to pay your taxes? Text, “withdraw $1,700 for taxes.” To encourage interaction, Digit texts users their savings balance and checking account balance on a regular basis.Last month, the company expanded its platform with the launch of a Goalmojis feature that encourages users to set up and save for all types of spending goals, ranging from vacations to utility bills, simply by texting an emoji that matches that goal, for example a Christmas Tree emoji (pictured right). If the user assigns a due date for the goal, Digit will set aside money on their behalf to help them achieve it.That’s a look at the first two types of savings technology. Stay tuned later this week for the final three examples.
*This Massachusetts-based company is not to be confused with U.K.-based ImpulseSave, whose parent company True Potential launched a similar product for the European market at FinovateFall 2014.
It’s no secret that saving money is more difficult than spending it. That’s why, since the dawn of fintech, startups and FIs alike have been working on solutions to get users to keep money in the bank. Changes in these solutions have been subtle but persistent over the decade-plus time that companies have had to refine them.
Missed the other five savings categories? Check them out:
For the next week, we’re going to take a look at six different categorizations of savings technology. We’re kicking the series off by focusing on PFM platforms that use a goals-based approach. Don’t cringe! While PFM and basic budgeting technologies may seem like dinosaurs, they have outlasted many other fintech innovations because they have a stickiness that keeps customers coming back.
This category contains companies that have expanded beyond simple discretionary income budgeting to offer some type of goal-saving feature. Two good examples are Meniga, which launched Personal Finance Challenges at FinovateEurope 2017, and Qapital, which employs an If This, Then That (IFTTT) approach to saving. Qapital debuted at FinovateSpring 2014.
Additionally, Qapital offers a savings feature that rounds up users’ daily purchases to the nearest dollar and deposits the change into their savings account. The Sweden-based company also supplies more traditional savings tools such as savings automation and goal-oriented transfers.
That’s a look at savings technology within PFM and how it applies to advice and goals. Stay tuned over the course of the week– we’ll examine the next five categories and investigate the companies that are pushing forward to encourage users to save.
Around the web
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
FinDEVr New York is finally here! If you have your ticket, we’ll see you at 9 a.m. at the Metropolitan Pavilion where the first company will take the stage.
Today’s presentations will be interspersed with networking and coffee breaks and will conclude with an open bar at the end of the day. We have a stellar presenter lineup for today; check it out:
Session 1
Session 2
Session 3
We’ll see you all tomorrow for the second day of FinDEVr New York. We’ll have free coat check at the venue. Don’t forget your badge!
It’s the final countdown! FinDEVr New York begins this week and we’re excited to host the dozens of presenters on stage March 21 and 22 at the Metropolitan Pavilion. Tickets are available online (and the promo code “FinDEVrBlog” will save you 10%).
Here’s what you need to know about this week’s event:
We’ll see you in New York on Tuesday!
If you have any questions, check out the FAQ section on our website or email newyork@findevr.com.
FinDEVr New York 2017 is sponsored by Google Cloud and Box.
FinDEVr New York 2017 is partnered with American Banker, BayPay Forum,BiometricUpdate.com, Breaking Banks, Byte Academy, Canadian Trade Commissioner Service,Celent, CIOReview, Cointelegraph, Colloquy, CooperPress, Distributed, Economic Journal,Empire Startups, Femtech Leaders, Finmaps, Fintech Finance, Harrington Starr, Level39,Mercator Advisory Group, The Paypers, Plug and Play Tech Center,SecuritySolutionsWatch.com, Swiss Finance + Technology Association, and Women Who Code.