Six Finovate Alumni Among American Banker’s Top 10 Tech

Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgMore than half of the companies recently highlighted in American Banker‘s “Top 10 Tech Companies to Watch” are Finovate Alumni.

Below are the six companies featured in the article, along with a link to their most recent appearance and product demo at Finovate.
Read the full article from American Banker here.

Launching: MetroMile Launches Mileage-Based Auto Insurance

image One of the dumber things I’ve ever done financially is buy an old two-seat convertible on eBay. Who would have guessed that you just don’t get a chance to drive that thing much in Seattle? But next July, when the sun comes out again, I’ll be very happy to have it.

In the meantime, I have this nasty monthly insurance bill. Really, $60 per month to have the car sit idle in my garage? It’s throwing good money after bad. I should call my agent and turn the insurance off. But what if there’s a sun-break this month or our other car is in the shop? Then I’ll need it.  

From the insurance company’s perspective, they don’t want me calling to activate/deactivate insurance multiple times per year (though they love my current zero-miles-per-winter full-pay status). The subsequent labor and fulfillment cost would wipe out much, if not all, the profitability on my account.

So, I’m the perfect candidate for pay-as-you-go insurance, and I’m happy to see it launch in Oregon, thanks to MetroMile, a VC-backed Bay Area startup (note 1). Hopefully, it will make it’s way north to Seattle very soon.
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How it works
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imageMetroMile charges a smaller fixed monthly fee, then adds a variable charge based on the number of miles driven (with a cap at 150 miles in a day).

To calculate the mileage fee users plug a small device called a Metronome into their on-board diagnostic port (note 2). It measures miles traveled and tracks GPS location to create a rich history of your touring (see inset & screenshot 1, note 3).

Oregon residents can get a lightening-fast quote (screenshots 2 to 5) and complete the app online (screenshot 6). The quote on my convertible came was $29/mo plus 2.3 cents per mile (screenshot 4). This would be an amazing deal for me, cutting my insurance costs by 50% annually (note 4). I would save money every month I drove less than 1,300 miles. 

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Opportunity for financial institutions 
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It’s going to take a massive education process before this new type of insurance becomes popular (assuming state regulators allow it). Show customers that you are innovative and can deliver superior value by introducing them to a financial product that could save them $20 per month for the rest of their lives. And one that delivers a rich history of their car travel (which can eventually be plugged into the bank’s PFM).

You could even package it with other bank products (checking, savings, car loans, etc) to continue to remind customers that you helped save them big time. Even more interesting, would be bundling the insurance with mileage-based auto financing to provide an even bigger incentive to save money by driving fewer miles. 

Right now, in the United States, only Oregon FIs could participate (note 5). But as the product spreads nationwide across multiple providers, it could make a nice, profitable product addition to your web and mobile offerings.  

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1. MetroMile dashboard showing GPS data compiled from tracking device (5 Dec 2012)

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2. MetroMile homepage features 2-minute quote
(5 Dec 2012)
Note: Unlike virtually all insurance quote sites, no contact info is required to find the actual price. And you for one car and one driver, you can fill out the form in as little as 60 seconds, my actual time the third time I tried it.

MetroMile homepage features 2-minute quote (5 Dec 2012)

3. Step 1: Enter primary driver info

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4. Step 2: Enter vehicle info

Step 2: Enter vehicle info

5. Step 3: The final price is delivered in the the third-pane of the application

Step 3: The final price is delivered in the the third-pane of the application

6. Finalize online app with contact info

6. Finalize online app with contact info

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Notes:
1. Hat tip to Pando Daily.
2. The port is available on all cars built since 1996.
3. The device could also be used to measure average speed, but GPS data collection is optional and is not currently used by the company.  
4. I was comparing my current Seattle price to a Portland quote, so that could be a portion of the difference.
5. We don’t know if MetroMile is will pay for referrals at this time.
6. For more on banks offering insurance, see our full report here (Dec 2011, subscription)

Finovate Alumni News– December 5, 2012

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  • Mitek to power US Bank’s mobile photo bill pay; launching early 2013.
  • Fiserv reaches milestone, delivers 2 billionth e-bill.
  • The Financial Brand looks at Knab’s online bank that runs on Figlo’s platform.
  • The city of Cincinnati partners with SoMoLend to support small businesses.
  • Forbes ranks Keynote Systems “one of the best 100 companies in America.”
  • US Airways implements MasterCard PayPass for in-flight purchases.
  • Keynote Systems DeviceAnywhere now integrated with HP’s QuickTest Professional.
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.

Finovate Alumni News– December 4, 2012

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgAmerican Banker looks at how UMB is implementing Dynamics’ ePlate card technology.
  • peerTransfer rolls out international payment solution to the K-12 (kindergarten through twelfth grade) education market.
  • InComm Canada launches No-Fee Vanilla Prepaid Product Line.
  • The CUNA Technology Council presents MoneyDesktop with Best of Show Award at the 17th Annual CUNA Technology Council Conference.
  • Cachet Financial Solutions powers Simple’s Remote Deposit Capture.
  • STL Beacon reports SoMoLend blazes new funding path in St. Louis through loans.
  • Expensify launches new feature: Commercial Card Reconciliation.
  • Desert News reports Virtual Piggy helps parents control children’s online spending.
  • Prosper launches new data enhancements.
  • VentureBeat reports Equifax buying CSC’s credit-services biz for $1B in cash.
  • Banno partners with ProfitStars to offer remote deposit, integrated bill pay.
  • Thomson Reuters upgrades user interface, functionality for FX Matching platform.
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.

FutureAdvisor Brings a Personalized Touch to Do-It-Yourself Financial Planning

Just a few minutes with FutureAdvisor may leave you wondering, “Is that all there is to financial planning?”

Image representing FutureAdvisor as depicted i...

Whether you are just starting to save for retirement, or have been investing in your 401(k) for years, the financial services industry does the average investor few favors when it comes to making the world of stocks and bonds any easier to understand. It’s no wonder why many investors give up.

If you’re not ready to throw yourself on the mercy of the stock market, consider this: in the same way that Wall Street and hedge fund pros use technology to better diversify their assets and grow their investments, retail investors have taken to online resources like FutureAdvisor to get control of their finances and put their money to work more efficiently.

Think about it: Does anyone remember the days before tax-preparation software?  I don’t, at least not very well. The rise of TurboTax completely changed the game for tax novices. Talk about empowerment! 

We are seeing a similar shift when it comes to retirement planning and the financial services industry. Now, with web apps and online resources, the average investor can begin diversifying, allocating, and growing his or her investments without the expense, hassle or headache of hiring a full-time financial planner.

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FutureAdvisor includes a helpful “Know Your Risk Tolerance” questionnaire to help customize investment recommendations.

FutureAdvisor has been around since 2010. Built by a team of engineering experts and run by a staff of investment professionals, FutureAdvisor combines a clean, easy-to-use interface with a sound, time-tested investing and retirement-planning methodology. This allows the average investor to take full advantage of the latest research in strategies for proper asset allocation, diversification, and keeping costs low.

So how does FutureAdvisor do it? After answering a few basic questions about your background, income, and retirement goals, you’ll see how quickly FutureAdvisor shows you just how much you need to save each month in order to have the money and lifestyle you want later. FutureAdvisor also provides a recommended strategy for properly allocating assets based on the information you provide.

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Conservative, moderate, or aggressive?  FutureAdvisor provides stock, bond, and low-cost mutual and exchange-traded fund recommendations for every investment style.

There’s more. Academic research has proven that rebalancing your portfolio regularly can make a major difference in how your investments perform over the long haul. But rebalancing can be difficult and time-consuming. That is where FutureAdvisor shines. Its unique algorithms help you easily make the necessary portfolio adjustments. It also sends email reminders when it is time to rebalance.

FutureAdvisor lets you know when high fees may be damaging your portfolio, going so far as to recommend alternative investments such as no-load mutual funds to lower costs. The service also reviews the tax efficiency of your portfolio and suggests ways to keep your tax burden as low as possible.

It is easy to get started with FutureAdvisor. Within minutes of setting up my account, I was reading a Portfolio Analysis Dashboard that showed my total assets, how well they were diversified, the impact of fees, and the overall tax efficiency of the portfolio.

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Clear and easy-to-read charts and graphs allow investors to see and understand exactly what is in their portfolios.

Your mileage may vary. But thanks to FutureAdvisor, I learned that my diversification was not as good as I thought it was, my portfolio fees were lower than I thought they were, and I could probably contribute more to my 401(k). What’s nice is that you can go back and make changes and see what kind of impact they would have on your overall retirement planning picture. How much would you have to save if you worked a little longer? How much would you have to save if you wanted a little higher income in your golden years? With a few clicks, FutureAdvisor will show and tell all.

This is all part of the free (“basic”) side of FutureAdvisor. Future plans include a premium version that provides automatic rebalancing and portfolio maintenance. Stay tuned for more on that front.

To learn more about FutureAdvisor, take a look at their demo from FinovateSpring 2012 here.

The iPad-Enabled Checkout Experience at the POS

The Hideout Coffee House in Austin

A few week ago I spent the weekend in Austin eating BBQ, watching my alma mater get crushed by the University of Texas, and sampling the Sixth Street ambiance.

But the highlight for me was the The Hideout Coffee House. Not only did it have great coffee and eclectic furnishings, but card customers could pay via Square through an iPad mounted in a novel wood stand (see inset; it’s not possible to see well, but the ipad stand is on the counter at left).

The barista took my card and swiped it through the Square reader, which was supported by a wood guide (see similar unit left from Tinkering Monkey). Then he flipped the case over 180 degrees so it faced out towards me (see below).

Tinkering Monkey iPad holder at the POSI selected one of the large buttons for a preset tip amount and then once more to have the receipt emailed to me (I only had to enter my email the first time).

It was easier to use than most in-lane POS readers, even contactless ones, because the barista actually did the swipe. It eliminated the uncertainty about when I should tap/swipe or whether it worked or what I should do next. And I loved being able to put a tip on the card with the push of a button rather than writing it on a piece of paper or digging for change. 

Tinkering Monkey swivel ipad caseBottom line: Eventually payments will be made via proximity and settled in the cloud (my mobile will know I’m in the store and will automatically pair me to the store’s POS). But there is still a long transition period ahead.

Tablet/smartphone card readers are a great interim step for smaller merchants (note 2), especially with the price wars waging at the point of sale (note 3).

Related: And banks, even though you don’t have the POS issue, you can equip your frontline staff with iPad-powered sales tools (note 4). 

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Notes:
1. On one of the Austin freeways, I also saw a billboard for the ISIS pilot. But I didn’t see any merchants promoting it. 
2. And some bigger ones. And of course, the 20,000-store Gorilla, Starbucks, is partnering with Square, though it is unlikely they’ll use iPads at the point of sale.
3. Bank of America recently jumped into the game matching Square’s 2.7% discount rate.  
4. Barclays just bought 8,500 iPads to equip its branch sales staff (Financial Brand post).

Xero Raises $49 million from Peter Thiel-Backed Valar Ventures and Matrix Capital Management

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Cloud-based accounting platformXero announced last week a NZ$82 million (US$67 million) investment from the following two companies:

    • Matrix Capital Management: NZ$58 million (US$48 million)
    • Peter Thiel-backed Valar Ventures: NZ$24 million (US$19 million)

Of the total, NZ$60 mil (US$49 mil) was new money and another NZ$22 million (US$18 million) went to purchase shares from Xero’s three largest shareholders. The new investors purchased the shares in order to minimize dilution to existing shareholders.

To learn more about Xero, watch its FinovateSpring 2011 demo.

Dwolla Launches Guest Checkout and New POS Integrations

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Iowa-based payment platform Dwolla made some key announcements today on its blog.

1.) Guest checkout
Users no longer need a Dwolla account to check out online with Dwolla. Instead, users authorize a one-time transfer from their bank account (via ACH).


DwollaGuestCheckout.jpg

Once customers opt to pay as a guest, they are routed to Dwolla’s external payment gateway where it takes 60 to 90 seconds to complete the process (assuming you have your checking account number handy) as follows:

a.) Enter name, Zip code, email address
b.) Enter phone number where a text or voice-authentication code is transmitted
c.) Enter the authentication code
d.) Enter bank account and routing numbers

To finalize the transaction, the consumer completes the normal checkout process back at the merchant.

2.) The “Dwolla Price”
Merchants can encourage consumers to use Dwolla by sharing the interchange savings. In the example below, a $100 unit is sold at the discounted price of $98.75 after the 3% interchange savings is split 50/50 with the customer and then the Dwolla flat 25 cents is added back in.

TheDwollaPrice3.jpg

3.) POS integrations

Dwolla announced POS integrations that have been in use for almost a month now*:

DwollaPOSIntegration.jpg
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Change and ShopKeep POS can initiate payments with Dwolla instead of using the Dwolla app or mobile wallet partner.

To learn more about Dwolla, watch its FinovateSpring 2012 demo video.

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*ShopKeep POS announced its integration at FinovateFall 2012.

Finovate Alumni News– December 3, 2012

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  • American Banker lists Andera, Banno, BillFloat, BillGuard, Mortgage Harmony, and Lighter Capital as top 10 tech companies to watch in 2013.
  • ZDNet reports UBank gears up for mobile banking site with beta program.
  • Frost & Sullivan recognizes Virtual Piggy with the 2012 Global Frost & Sullivan Award for Entrepreneurial Company of the Year.
  • ProfitStars adds new protections against malware.
  • Sybase 365 and Globe Telecom partner to launch LTE roaming service with China Mobile.
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.

FinovateAsia 2012 Demo Videos Now Available

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We’re excited to announce the demo videos from FinovateAsia 2012 are now available for your viewing enjoyment. If you missed out on our inaugural Singapore conference this year, this is your chance to see the newest Asian fintech innovations from the 35 cutting-edge companies that were on stage. 

The videos are part of the Finovate Archives, where you can watch (for free) every demo of new technology since our first conference in the fall of 2007. It’s an inspiring place to hang out online for a couple of hours.

If these videos have made you hungry for more, tickets for FinovateEurope (February 12-13, 2013 in London) are available at the early-bird discounted rate for a few more weeks. Our third annual London conference has been expanded to two days in order to showcase even more innovations and we hope you’ll join us to watch the future of European fintech debut live! 

FinovateAsia 2012 was sponsored by: The Bancorp Inc., Citi Ventures, Financial Technology Partners, Infocomm Development Authority of Singapore, Standard Chartered, & Visa

FinovateAsia 2012 was partners with: Asian Banking & Finance, BankInnovation, BankerStuff, BeSuccess, Celent, Finance on Windows, PYMNTS.com, The Asian Banker & The Emerging Finance

FinovateAsia 2012 Demo Videos Now Available

FinovateAsiaLogo.png

We’re excited to announce the demo videos from FinovateAsia 2012 are now available for your viewing enjoyment. If you missed out on our inaugural Singapore conference this year, this is your chance to see the newest Asian fintech innovations from the 35 cutting-edge companies that were on stage. 

The videos are part of the Finovate Archives, where you can watch (for free) every demo of new technology since our first conference in the fall of 2007. It’s an inspiring place to hang out online for a couple of hours.

If these videos have made you hungry for more, tickets for FinovateEurope (February 12-13, 2013 in London) are available at the early-bird discounted rate for a few more weeks. Our third annual London conference has been expanded to two days in order to showcase even more innovations and we hope you’ll join us to watch the future of European fintech debut live! 

FinovateAsia 2012 was sponsored by: The Bancorp Inc., Citi Ventures, Financial Technology Partners, Infocomm Development Authority of Singapore, Standard Chartered, & Visa

FinovateAsia 2012 was partners with: Asian Banking & Finance, BankInnovation, BankerStuff, BeSuccess, Celent, Finance on Windows, PYMNTS.com, The Asian Banker & The Emerging Finance

Bundle Acquired by Capital One

Capital One announced today that it had acquired “substantially all” the assets of Bundle, a PFM and card analytics effort from Citibank, Microsoft and Morningstar. 
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Terms of the deal were undisclosed. Bundle CEO Jaidev Shergill and the company’s eleven associates will join Capital One as part of Capital One’s Digital Labs.
Bundle provides tools that enable consumers to track their own spending patterns, as well as compare their own purchase preferences to those of other consumers. 

To learn more about Bundle, watch the company’s most recent demo from FinovateFall 2011 here