Infographic: Internet Banking Vendor Timeline, 1997 to 2012

Here is a monster infographic from our friends at Mindful Insights LLC, a boutique consulting firm in the digital finance space (previous post). You can click on the image for a larger version, or better yet, grab the PDF version here. We appreciate the opportunity to publish it.

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Finovate Best of Show Winners: 2007 to Present

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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:

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Held October 2, 2007
Mint: Online PFM for individuals
Mortgagebot’s Mortgage Marvel: Mortgage marketplace
Prosper: P2P lending network
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Held April 29, 2008
First ROI (now BancVue): Develops products and services for community financial institutions
Jwaala: Provides software solutions to help financial institutions compete
Zecco: Online stock and options trading
Zopa: P2P lending network
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Held October 14, 2008
CheckFree: Online banking platform 
Credit Karma: Provides a free and easy way for consumers to understand, monitor and monetize their credit profile
Mint: Online PFM for individuals
Neosaej’s MoneyAisle: Platform where banks compete in live auctions for an individual consumer’s business 
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Held April 28, 2009
BillShrink (now Truaxis): Provides a free cost-savings tool that saves consumers money on everyday bills
Prosper: P2P lending platform
Silver Tail Systems: Predictive analytics to prevent fraud abuse
SimpliFi: A web service that allows anyone to create and update their own financial plan
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Held September 29, 2009
BancVue’s Kasasa: national checking/ savings account brand for community financial institutions
Credit.com: Provides free interactive tools, education, and unbiased comparisons of quality financial products and services
Digital Insight from Intuit: Provides on-demand banking services to help financial institutions serve clients
Silver Tail Systems: Provides online fraud detection platform 
Yodlee: Provides personalized financial solutions to financial institutions
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Held May 11, 2010
Bobber Interactive: Money management platform for youth
Expensify: Online and mobile expense report platform
oFlows (Purchased by Andera in 2011): Multichannel paperless solutions for account openings
Wikinvest: A platform for investors to share trading tips
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Held October 4-5, 2010
Betterment: Investment account for savings management 
BillShrink (now Truaxis): Loyalty rewards provider
Bundle: Provides socially informed money management for individuals
Dynamics: Produces and manufactures intelligent powered cards
oFlows (Purchased by Andera in 2011): Multichannel paperless solutions for account openings
PayNearMe: Cash transaction network for the underbanked
SecureKey: Token-based authentication technology
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Held February 1, 2011
eToro: Social investment network
Finantix: Provides sales and advice solutions for financial services 
Liqpay: Payments platform
Meniga: Online PFM for financial institutions
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Held May 10-11, 2011
BancVue: Develops products and services for community financial institutions
BankOns: Mobile app offering consumers real-time savings at local merchants
Dwolla: Online, mobile, and social peer-to-peer payment platform
oFlows (Purchased by Andera in 2011): Multichannel paperless solutions for account openings
Mitek Systems: Provides apps for smartphones that allow users to deposit checks and pay bills via their devices’ cameras
PayNearMe: Cash transaction network for the underbanked
Wikinvest: A platform for investors to share trading tips
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Held September 20-21, 2011
BillGuard: People-powered antivirus for bills
Dynamics:  produces and manufactures intelligent powered cards
eToro: Social investment network
FamZoo: Online “virtual family Bank”
FeeFighters: Platform that simplifies the process of choosing a merchant account provider
LearnVest: Online PFM for women
Offermatic: Targeted online offers provider
oFlows (Purchased by Andera in 2011): Multichannel paperless solutions for account openings
Personal Capital: Online financial advisor helping people manage their investments
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Held February 2, 2011
Cardlytics: Transaction-based rewards
Dynamics: produces and manufactures intelligent powered cards
eToro: Social investment network
Nutmeg: Online investment manager that democratizes saving and investing

Finovate Alumni Website Traffic in September

Each month we survey the Web-traffic performance of Finovate alums using data from Web-analytics company Compete.
Out of 268 alumni, 80 had more than 10,000 unique U.S. visitors in September 2011 and are included in the tables below. Of those, 33 (41%) had more visitors in September than August. Year-over-year, 42 (52%) had traffic increases.
Private Companies
  • Seeking Alpha and Cortera had the highest traffic in September with 2.1 and 2.0 million unique visitors, respectively. Cortera also had the highest increase in number of unique year-over-year visits with over 1.5 more visits in 2011 than in 2010.
  • Kabbage had the highest percentage growth year-over-year, up 280x.
  • Weemba saw the highest monthly growth percentage with more than 7.5 times the number of unique visitors in September compared to August.
  • SmartCredit.com had the highest increase in number of unique year-over-year visitors, growing by 126,000.
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Source: Compete.com retrieved the week of October 26, 2011
 
1) The previous month recorded was August 2011
2) Sears Credit Score is powered by CreditKarma.com
3) Truaxis was formerly BillShrink
4) Kasasa is powered by BancVue
Public companies
 
  • CheckFree had the highest percentage growth year-over-year, with over 7 times the number of visitors this year than last year.
  • Intuit had a notable increase in number of unique, year-over-year visitors, increasing by 300,000 visits.
  • Check Point had the highest month-over-month percent growth, with 41% more visitors in September than in August.
PublicWebTrafficSeptember2.jpgSource: Compete.com retrieved the week of October 26, 2011

1) The previous month recorded was July 2011.
_______________________________________________________
Notes:
1. We reviewed 268 Finovate alumni. Only those with at least 10,000 unique visitors in July are listed.
3. NM = not measurable
4. t= tie
5. Compete estimates online visitors based on the activity of a panel of more than 2 million U.S. Internet users. It is only an estimate of traffic and may undercount at-work usage.

Finovate Alumni Website Traffic in August

Each month we survey the Web-traffic performance of Finovate alums using data from Web-analytics company Compete
Out of 268 alumni, 75 had more than 10,000 unique U.S. visitors in August 2011 and are included in the tables below. Of those, 41 (55%) had more visitors in August than July. Year-over-year, 45 (60%) had traffic increases.
Private Companies
  • Seeking Alpha — the most-trafficked in August with 2.5 million unique visitors — also had the highest increase in number of unique month-over-month visits with 300,000 more visits in August than in July.
  • Budgettracker.com saw the highest monthly growth percentage with more than 6.5 times the number of unique visitors in August compared to July.
  • Betterment had the highest percentage growth year-over-year, up 88x.
  • Cortera had the highest number of unique year-over-year visitors, growing by 1.5 million. 
August2011PrivateWebTraffic4.jpg
Source: Compete.com retrieved week of October 3, 2011
1) The previous month recorded was July 2011
2) Truaxis was formerly BillShrink
4) Kasasa is powered by BancVue
5) Checkingfinder.com is powered by BancVue

Public Companies

  • Fiserv had the highest month-over-month percent growth, with 50% more visitors.
  • CheckFree had the highest percentage growth year-over-year, with over 5 times the number of visitors.
  • S1 also had a high percentage growth year-over-year, doubling its visitors.
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Source: Compete.com retrieved the week of October 3, 2011
1) The previous month recorded was July 2011.
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Notes:
1. We reviewed 268 Finovate alumni. Only those with at least 10,000 unique visitors in July are listed. 
3. NM = Not measurable
4. t= Tie
5. Compete estimates online visitors based on the activity of a panel of more than 2 million U.S. Internet users. It is only an estimate of traffic and may undercount at-work usage.

Finovate Alumni News– October 20, 2011

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  • FreeMoneyWisdom blog interviews Jon Stein, Betterment CEO.
  • Silicon India Startup blog lists Expensify as a good app for busy CEOs.
  • National Review Online holds BankSimple up to Richard Bronson’s new ethics initiative.
  • Bremer Bank to add CheckFree RXP from Fiserv.
  • Yaron Samid of BillGuard & Jon Stein of Betterment to show how their products help solve #occupywallstreet issues.
  • Check out Finovate Alumni Website Traffic in August.
  • mFoundry & SecondMarket Hit Deloitte’s 2011 Technology Fast 500 list.
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– October 18, 2011

  • Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgTSYS signs payments agreement with Imperial Bank.
  • The Baltimore Sun mentions BillFloat & Prosper.com as two companies that are assisting cash-strapped consumers.
  • LearnVest launches LV Mom’s Newsletter & 2 new products: Baby On Board Bootcamp & LV Discussions.
  • Weemba gives small businesses simple, direct pipeline for raising financing pre-holiday season.
  • Morningstar recommends CheckFree to help control your bills by setting up automatic payments.
  • Continuity Control buys Compliance Services Group of Iowa & Kirschler Peterson & Associates of Atlanta.
  • Crain’s New York Business.com mentions BillGuard, BankSimple, Betterment, SecondMarket, On Deck Captial & Plastyc.
  • Jemstep launches out of beta to offer custom investment advice & guidance.
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.

Alumni News — Week of July 18, 2011

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ChargeSmart 
AOL’s Daily Finance highlighted Chargesmart’s secondary gift card market that allows 

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consumers to pay for bills in exchange for gift cards. Link
CheckFree 
Family Wealth Report stated that CheckFree is leading the way in UMA processing. Link
Credit Karma 
  • CBS Money Watch discussed Credit Karma’s data on America’s debt. Link
  • Fox Business News listed Credit Karma’s credit score simulator tool as a 15-minute fix for your credit score. Link
doxo 
Practical Ecommerce listed doxo as one of 17 apps for productivity. Link
Dwolla  
  • Dwolla hit $1 million in payments per day and Ben Milne, CEO, shared a sneak peak of future plans. Link
  • Ace Community Credit Union provided customers with access to Dwolla through its site.
  • Dwolla CEO Ben Milne explained why starting a business in Iowa isn’t hard. Link
  • Dwolla introduced a new Autoload feature. Link
  • Dwolla was listed on The Next Web as one of eight awesome ways to pay with your phone. Link
eToro 
eToro Partners began testing a new foreign exchange affiliate tool called Custom Links. Link
Expensify 
  • The Info.rmatics blog testified to Expensify’s ease of use. Link
  • ipCommerce showcased Expensify’s innovation. Link
GoalMine 

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Mango Money added GoalMine to its list of services. Link
HelpMyCash 
HelpMyCash revamped its website to be more consumer-friendly. Link
IDTheft 911
Barnstable County Mutual Insurance Company selected Identity Theft 911 for its LifeStages service. Link
iPay Technologies 
TechCrunch reported that Bill Ready, former President of iPay Technologies, joined Accel Partners as an Executive in Residence. Link
Lending Club 
  • ATM Options discussed seven good reasons to invest through Lending Club. Link
  • Netbanker discussed Lending Club’s record high growth. Link
Lendio 
  • Lendio added TAB Bank to its network of lenders. Link
  • Reuters reported that Swift Capital and Lendio partnered to help small businesses. Link
mFoundry 

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  • American Banker considered Bank of America’s recent investment in mFoundry. Link
  • Credit Union Journal discussed Colombia Credit Union’s adoption of mFoundry’s mobile banking. Link
Mint.com
  • Mint.com introduced a manual transactions feature for its iPhone app. Link
  • TechCrunch reported Mint.com’s debut of a new feature that tracks bills and sends reminders. Link
Monitise 
  • Monitise signed over 6,000 users in Nigeria to a mobile payments trial. Link
  • TechMarketView discussed Monitise’s financial success. Link
peerTransfer 
Yahoo! Finance reported peerTransfer’s growth in international student payment processing. Link
Prosper 
  • Netbanker discussed Prosper’s record high growth. Link
  • Prosper raised its interest rates by 2.5 percent. Link
SmartyPig 
SmartyPig introduced its back-to-school cash giveaway contest. Link
ThreatMetrix 
ThreatMetrix announced its upcoming user conference October 9th through 10th. Link
TradeKing 
TradeKing launched a new video series to help consumers understand options trading. Link
Tyfone 

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Oregonlive.com described Tyfone as a major player in mobile payments. Link
Wikinvest 
Forex Promos shared an interview with Mike Sha, Wikinvest CEO. Link
Xero 
Reuters reported that Xero agreed to acquire Paycycle, a payroll company. Link

Zecco 
Wealth Building Tips and Strategies blog shared Zecco’s options trading video series. Link
ZimpleMoney 
ZimpleMoney adjusted its services in response to the Dodd-Frank reform. Link

Alumni News — Week of June 13, 2011

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AcceptEmail
AcceptEmail partnered with WorldPay to launch an e-billing and online payment service. Link
Balance
GeekWire interviewed Balance Financial CEO, Devin Miller. Link
BancVue
BancVue executives won Ernst & Young Entrepreneur of the Year. Link
BankOns
Examiner.com referred to BankOns as the new GroupOn. Link
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BillShrink
BillShrink was featured in The New York Times. Link
BrightScope
Forbes reported on BrightScope’s list of exchange-traded funds held in America’s 401k plans. Link

CheckFree
CheckFree expanded its functionality to support account-to-account and peer-to-peer transfers. Link
Clairmail

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Clairmail joined the RSA Secured Partner Program to provide secure access to mobile banking. Link
doxo
  • doxo CEO explained paperless billing in a video interview, highlighting the mobile app. Link
  • doxo was featured on the Top Productivity Apps website. Link
  • Northwest Innovation reviewed doxo’s mobile app. Link
Dwolla
TechCrunch reported that Dwolla hit a milestone of $1M in transactions per week. Link
Enloop
  • Business News Daily interviewed Enloop CEO, Cynthia McCahon, about creating a “living business plan”. Link
  • Huffington Post spotlighted Enloop. Link
eRollover
eRollover launched an online solution for financial advisors to grow practices. Link

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eWise announced its partnership with Affirmative Technologies to speed the adoption of
alternative payment methods. Link
Kiboo
Kiboo launched a public site called “Know Your Money”.  Link
Lending Club
  • Lending Club posted a video of their five-word acceptance speech at the Webby Awards. Link
  • The Wall Street Journal noted Lending Club as leading the way in P2P lending. Link
mFoundry
  • mFoundry helped Starbucks build an app for Android. Link
  • mFoundry passed the 400 customer milestone. Link
Mitek
Mitek’s mobile check deposit was cited as the number one feature that would cause you to switch banks. Link
Monitise
  • ComputerWeekly discussed the survey Monitise conducted on mobile banking. Link
  • Forbes discussed Monitises’ deal with Visa. Link
peerTransfer
  • peerTransfer is hosting a free webinar on international student payment processing this Wednesday, June 22. Link
  • peerTransfer won the Innovation Award from Massachusetts Innovation & Technology Exchange. Link
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  • Prosper announced that it is giving away an iPad2 to new investors. Link
  • The Wall Street Journal noted Prosper as leading the way in P2P lending. Link
SafetyPay
SafetyPay was selected by BorderJump as its preferred payment solution for cross border transactions. Link
SmartyPig
Fox Business News suggested using SmartyPig.com as a tool to help “pump up” savings. Link
Tagit 
Tagit helped Commonwealth Bank launch its first mobile app. Link
ThreatMetrix
  • ThreatMetrix announced its cloud-based fraud prevention platform. Link
  • ThreatMetrix launched “ThreatMetrix Fraud Facts,” a free downloadable report. Link
Tyfone
  • Tyfone was awarded an NFC over-the-air and over-the-wire seminal patent. Link
  • American Banker reviewed Tyfone’s mobile payment patent. Link
  • NFC Rumors looked at how Tyfone uses SD cards to enable NFC transactions. Link

CheckFree, Credit Karma, Mint and MoneyAisle Win Finovate Best of Show Awards

image As conference host, I haven’t quite recovered from the whirlwind of activity yesterday. I’ll post a final conference wrapup tomorrow, but I wanted to get in a quick update with the Finovate 2008 Best of Show winners. 

We had planned to award it to the top three, but there were four companies in a virtual tie at the top (note 1), so we named four winners this year.

In alphabetic order, the winners:

  • image CheckFree which demonstrated its new online banking platform packed with new features
  • image Credit Karma which showed several new features including a tool allowing “what-if” calculations with your credit file
  • imageMint which announced its move out of beta and demo’d several new investment management functions
  • imageNeosaej which showed its unique MoneyAisle real-time, reverse-deposit auction service

Congratulations to these four companies and to everyone else who made the day so interesting.

About the voting
All attendees not affiliated with the presenters rated each demo on a scale of one to six. The ballots were turned in at the end of the final demo session. Approximately 70% of eligible voters turned in complete ballots.

Note:
The companies didn’t finish with the same average scores, but rounding to the nearest tenth created a four-way tie.

CheckFree/SunTrust Link Ebill Usage to Profitability

Graphic from SunTrust ebill pageimageIt comes as no surprise to anyone that online banking and bill pay customers are more profitable than non-adopters. This correlation, driven by the favorable demographics and lower attrition of online adopters, has clearly been established since the early days of the Web.

What's far more difficult to prove is causation. Does online banking/bill pay actually lead to more profits? The main hypothesis: by locking customers into an electronic service, they are not only less likely to move their accounts, they will also consolidate deposits and other financial activity at the provider of the online services. We'll get back to that.

It's not surprise that ebill users are more profitable
But first, here's some new correlation data from SunTrust that can help you benchmark your own performance or serve as a proxy for your business case. The study was released in late 2007 and was underwritten by ebill provider, CheckFree. The research company, Aspen Analytics, published a short white paper on the project here. And Forrester's Cathy Graeber published a research note three weeks ago here.  The two companies presented their findings in a webinar this week (replay here).

One interesting aspect of this study is that ebill customers were segmented into casual users that viewed one or two ebills per month and heavy users that looked at 3 or more ebills each month. The heavy users owned 5% more SunTrust products and were 20% more profitable to the bank (see chart 1 below).

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Source: Aspen Analytics/CheckFree, Nov. 2007
Projections based on 13 months of SunTrust data captured between Feb. 2006 and Feb. 2007

Even more dramatic was the correlation between online product usage and attrition, defined as the closure of the primary SunTrust checking account. Offline customers were six times more likely to close their accounts in the six-month observation period
than heavy ebill users (see note 1). image Source: Aspen Analytics/CheckFree, Nov. 2007

The bottom line: 5-year NPV for heavy ebill users was 36% higher than those that used bill-pay only and nearly double the online-banking-only population (no use of bill pay
or ebilling). 

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Source: Aspen Analytics/CheckFree, Nov. 2007

But does ebill use CAUSE profits to increase?
The correlation data above illustrates the importance of taking good care of bill pay/ebill customers. However, to justify incremental investment, you need to know the expected payback, i.e., how much more revenue/profits can you expect by moving customers into ebilling.

This study made a concerted effort to determine if the use of free ebilling services can leads to more profits. The researchers normalized the population across hundreds of product, tenure and demographic variables drawn from SunTrust's own CRM files and from appended Equifax info. But absent full before-and-after interviews with the subjects, it's still just a model it hard to fully test. There could be important factors outside the SunTrust/Experian datasets that account for lower attrition. For example, perhaps the well-heeled online banking customers who closed their primary SunTrust checking account in late 2006 stayed away from ebills because they had a sense they would be moving in the near future, so why bother setting up ebills.

But with these caveats in place, it does appear this study demonstrates that moving customers into the heavy ebill category causes them to be more loyal, at least in the short term. Cathy Graeber, the Forrester VP participating in the webinar, certainly thinks so.

The following chart shows that about half the decline in customer churn (36 points) has nothing to do with ebill usage but should be attributed to the favorable customer profile of ebill users. However, the remainder of the decline (32 points), is attributable to being heavily involved in ebills (viewing 3 or more per month). Put another way, ebilling decreases the expected attrition of this type of customer household by almost 50%. 

 

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Source: Aspen Analytics, The E-Bill Effect:  The Impact on Customer Attrition from Banks that Offer E-Bill, Nov. 2007
Note: Ebill customers in this example are heavy users looking at 3 or more ebills per month.


Bottom line
If those results hold true for other banks' customer bases, it could justify significant investment in ebilling activation programs. For example, if you value an active checking account at $200 per year and it costs $100 to convert them to ebilling, and you achieve a 33% reduction in attrition, the net gain is $230 per new ebill account over five years. Convert 10,000 users and the NPV would be more than $1.5 million (see note 2).

Even if you discount the results due to research bias (it was after all underwritten by the leading ebill provider) or you take issue with the methodology, it does appear that the companies have proven a material reduction in attrition by frequent ebill usage.

And to give it the final "co
mmon sense" test. It does seem logical that someone who's taken the trouble to set up online banking, online bill pay, and register three or more bills for delivery, would tend to be less likely to ditch their checking account for that sexy deal across town.  

Notes:

Definition of customer segments:

  • Overall = Entire SunTrust customer base
  • Offline = SunTrust customers that do not use its online banking or bill pay/ebills
  • Online = SunTrust customers who use online banking but NOT bill pay/ebills
  • Bill pay only = SunTrust customers who use its online bill pay system, but NOT ebills
  • E-bill = SunTrust customers who use its ebill service and view 1 or 2 bills per month on average
  • 3+ E-bills = SunTrust customers who use its ebill service and view 3 or more bills per month

1. Attrition was defined as anyone who closed their primary SunTrust checking account between Sep 2006 and Feb 2007 and did not open a new one during that period. It's a pretty short window, so that's one limitation of the findings that you should be aware of. Over a two or three year period, their could be much different results.

2. $200 saved x 5 years x 33% attributed to the ebill program = $330 gain less the $100 cost to convert to ebilling = $230. Across 10,000 customers the total net gain would be $2.3 million. Discounted at 12%, the NPV is more than $1.5 million.