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Austin Business Journal profiles Bazaarvoice CEO, Brett Hurt.CU Journal reports Minnesota’s Postal CU unveils mFoundry’s M-Banking.Kashoo signs accountant.org to its MVP program.Here’s a look at press coverage from FinovateSpring 2012 in San Francisco last week. For comprehensive coverage, be sure to check out Erin McCune’s live blog on PaymentsViews, which covers all 63 presenting companies:
2 Minute Finance
2MF @ Finovate Spring 2012 Conference
by Bobby Lee
Link
“Cardlytics will be demonstrating the impact of showing merchants how and where their revenues are being generated on a geographical representation.”
We recently looked back at Finovate’s Best of Show Awards archives and wanted to share the list of the 41 award-winning companies.
Here’s the Best of Show history that stretches back to 2007, the inception of Finovate:
StockTwits updates iPhone App.Last week, Christophe Langlois @Visible-Banking tweeted a question about the value of in-statement rewards programs:
And my answer:
My response was partly 140-character hyperbole. It’s Twitter after all. But after sleeping on it, I think what I said might actually be true.
What’s the biggest problem facing online/mobile banking?
The cost to the bank. Always has been and always will be. And it’s not going to get less expensive anytime soon (note 1). Every time we write about the next must-have online bell or mobile whistle, it just gives bank CFOs another gray hair.
Up until recently there were only three ways to pay for these extra expenses:
The vast majority of banks, and every one in the United States, took the last approach. Unfortunately, this can lead to unwise pricing decisions such as the one that gave rise to the “$35 cup of coffee.”
But thanks to Cardlytics, who recently took home Best of Show honors at Finovate Europe, and others, we are entering into a new era of advertising-supported banking. And that could finally make direct banking a revenue generator on its own. Not enough to pay all its costs, but enough to alter the game.
Let’s assume banking customers redeem 2 offers per month and the average commission to the bank is $1 each (note 2). That’s $2/mo in new revenues, almost entirely attributable to the online/mobile channel (note 3).
A bank with 25,000 online banking customers would earn about $600,000 annually. That will buy a several bells and a decent whistle.
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Notes:
1. It can be argued that in the long-term support costs per banking customer will fall dramatically as branches and human customer support are downsized.
2. Using Aite’s forecasted $1.7 billion in-statement commissions in 2015 and dividing by 70 million online banking household (link).
3. You have to have the debit or credit card too, so the revenue might need to be shared with the card P&L.
4. We published a report on in-statement rewards in 2011 in our Online Banking Report.
Forrester Blogs
At Tuesday’s second annual FinovateEurope, 35 companies laid it on the line within the grueling 7-minute demo format plus a day of networking in the old London fish market on the Thames.
For the first time ever, and much to our astonishment, every demo finished at or under the time limit. Thankfully, we never had to hear the bell signifying that time is up.
At the end of the last demo, eligible audience members (note 1) voted for their three favorite demos (note 2). All 35 companies received votes (employees of presenting companies cannot vote), but four stood out in the vote tally (alphabetic order):
Cardlytics (with Aimia) showed its in-statement ad platform and management tools (demo recap)
Dynamics which launched its “chip and choice” card for 
eToro which launched its crowd-sourced “guru finder” 
Nutmeg launched an investment service focused around the needs 
Dynamics and eToro are previous Best of Show winners. You can read our live blog posts on each demo now. And in two or three weeks we’ll have the full demos available at Finovate.com.
Thanks to everyone who attended and presented. We are truly humbled by the support from the European financial community, and we are already making plans for the 2013.
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Notes on methodology:
1. Only audience members NOT associated with demoing companies were eligible to vote. Finovate employees did not vote.
2. Attendees were encouraged to note their favorites as the day went on and choose three favorites only from the demos of that day. Ballots were turned in at the end of the last demo session each day.
3. The exact written instructions given to attendees: “Please rate (the companies) on the basis of demo quality and potential impact of the innovation demoed. Note: Ballots with more than three companies circled will not be counted.”
4. The four companies appearing on the highest percentage of submitted ballots were named Best of Show.
Then, Aimia and Cardlytics demonstrated a solution that will help merchants keep track of offers and revenue:
“Aimia will be demonstrating the merchant-facing portal, powered by Cardlytics, that is used by merchants to track offers served, activated, and revenue earned. All bank-facing channels and capability are pointless elements if the merchants aren’t engaged. The Aimia solution enables that merchant engagement.”
Product Launched: October 2011
HQ Location: Atlanta, GA, U.S.A. and London, U.K.
Company Founded: February 2008
Metrics: Raised $60 million, 100 employees, 70 million U.S. households (Q1-12)
Website: aimia.com
cardlytics.com
