Deposits, Checking, Savings, CDs

Innovators: Incredible Bank Breaks the Direct-Bank Mold

By Jim Bruene Posted on
Categories: Advertising & Promotion, Deposits, Checking, Savings, CDs, Direct Banking, Strategies

image The ink’s barely dry on the news that ING Group will divest its U.S. bank, ING Direct, within the next 48 months (note 1), when someone else has already launched a direct bank with a distinctive orange theme (note 2):

The new brand: Incredible Bank from River Valley Bank, an 18-branch, $900 million (assets) bank headquartered in Wausau, Wisconsin.

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The strategy: Like the original orange bank’s Electric Orange account, Incredible Bank offers a high-yield checking account, currently paying 2%, that’s 100% electronic. No paper checks (note 3), no paper statements. And unlike the hundreds of rewards-checking products, this one comes with no strings attached. The full rate is paid on all balances up to $250,000, then it drops to 1%.

Other account features:

  • Debit card
  • Free online bill pay
  • Unlimited ATM reimbursement
  • Overdrafts are $34 each with max 10 per day
  • Incoming wires are $5 each, outgoing are $20
  • Mobile banking (which is highlighted on the home page, see below and note 4)
  • ACH in/out (coming soon)

Analysis
I’ve always wondered why, other than ING Direct and Kiwi Bank, only the U.K. direct banks seemed capable of a light-hearted brand positioning online (see update below). While we’ve seen many good social media and microsite efforts using humor, few financial institutions have dared use this approach on their core websites. Leave it to those spirited cheeseheads in Wisconsin to break the mold finally (note 5).

Initially, it’s the 2% rate that will bring cash to Incredible Bank. But longer term, for any direct bank to add value to the parent’s franchise, it must create loyal customers who won’t bolt to the next newcomer offering a 15-basis-point rate advantage. This is a good start for River Valley, but they’ll need a lot more than this bare-bones website to create long-lasting relationships.     

Hat tip: Bank Deals blog.

Update 9 Nov: The Financial Brand’s Jeffry Pilcher reminded me of two good U.S. examples, GMAC’s Ally Bank and (how could I forget?) Redneck Bank.

Incredible Bank homepage (9 Nov 2009)

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Notes:
1. In his Retail Delivery presentation, always one of the highlights of the show for me, Second Curve principal Tom Brown said ING Direct would be an attractive acquisition for any number of deposit-seeking large financial institutions; however, he did not name any.
2. Full disclosure: I have a strange weakness for the color orange, perhaps the result of many trips to Florida as a child. So, take anything I say in this post with a huge grain of salt. 
3. Normally, I think paper checks should still be made available, even if they are discouraged with fees. However, in cases where the direct brand will cannibalize deposits at the parent, it can make strategic sense to cripple the direct brand’s checking account in this way. That way, fewer River Valley customers will simply move their entire checking account over.
4. The bank has created a mobile site with shorter URL: ib4you.com. 
5. While Incredible Bank is quite different, the main River Valley Bank brand remains typically conservative, at least in its online presence. They don’t even dare mention the Incredible brand anywhere on its website.
6. See our Online Banking Report: Growing Deposits in the Digital Age for a dozen more strategies.

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Fifth Third Bank Bundles Free Credit Report Monitoring & Identity Theft Protection into Checking Accounts

By Jim Bruene Posted on
Categories: Credit Reports & ID Theft Protection, Deposits, Checking, Savings, CDs, Fifth Third Bancorp, Pricing, Security & Privacy

imageChecking account profits are being attacked on several fronts. Near-zero short-term interest rates have destroyed the profitability of the balances. Regulators and activists are putting pressure on penalty fees. And consumers are loath to pay monthly charges for what’s been positioned as a free service for so long.

So how is it that Fifth Third Bank is able to bundle a service into its checking account that typically costs consumers $12 or more per month? They are bringing back the monthly fee (see note 1), charging either $7.50 or $15 per month for a so-called package account (see options below). It’s a strategy right out of Marketing 101: figure out what customers want, then build the  product, package it right, promote it well, and price it for the value delivered.

I believe Fifth Third has taken the right tack with its checking accounts, though it should go even further (see analysis). The bank offers two non-interest checking account bundles (PDF comparison here), neither of which are free of charge no matter how high the balance (note 2). Instead of offering fee waivers, the bank has bundled full-service three-bureau credit report monitoring and identity theft services powered by Affinion (link to Fifth Third Identity Alerts). And the monitoring is available for BOTH names on a joint checking account (note 3). 

  • Secure Checking at $7.50/month, comes with free credit report
    monitoring and identity theft protection (valued at $9.95/month per person)
  • Gold Checking at $15/month, comes with the same free ID protection &
    monitoring plus free nationwide ATM access

Analysis of Secure Checking
imageNow more than ever, customers are craving security and safety in all things financial (see yesterday’s post). Bundling identity theft/credit report monitoring in checking accounts is an excellent way to address customer concerns AND differentiate your account in the marketplace. And naming it Secure Checking helps drive home the key benefit.

I like what the bank has done. It would be even better if it highlighted more of its current security features available in mobile and Internet banking (note 4):

  • Email alerts
  • Mobile text alerts
  • Secure storage of estatements
  • Transaction monitoring for fraud and error
  • Other security protections as outlined on its security page

And down the road, they could enhance the account with additional features such as (note 5): 

  • Out-of-band authentication via text message
  • Disposable credit/debit account numbers
  • Long-term (7+ years) secure transaction archives
  • Enhanced fraud protection guarantees
  • Dedicated security reps on call 24/7 to help out in the case of a suspected problem
  • Software and tools to safeguard online banking (e.g., Trusteer, Authentium, Check Point)

Fifth Third Bank non-interest checking accounts (link, 2 Sep 2009)

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Secure Checking landing page

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Notes:
1. Ref: Is This the End of Free Checking?, SmartMoney Magazine, 31 Aug, by Kelli B. Grant
2. The bank does offer an interest-bearing checking account with its $15 monthly fee waived with a $2,000 average balance in checking or $20,000 across all deposit and investment products. The bank also has a free non-interest checking account option.
3. I’m not sure the bank gets enough mileage out of covering BOTH account holders to justify the additional costs. To improve profits, the bank should consider a modest additional fee (approximately $5/mo) to cover joint account holders. 
4. These benefits are hidden behind a tab that most consumers, including myself on my first two passes, will likely miss (see second screenshot above).
5. For more info on how to package security benefits into your services, refer to the following Online Banking Reports: Marketing Security (June 2005) and New Techniques for Securing Online Banking (Sep 2008).

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WV United Federal Credit Union is First with iPhone-based Remote Check Scan & Deposit

By Jim Bruene Posted on
Categories: Best of the Web, Deposits, Checking, Savings, CDs, iPhone, Mobile Banking, Remote Deposit Capture

imageIn June, we reported on USAA’s upcoming iPhone app that will support remote check deposits. But it looks like they were beaten to market by tiny WV United FCU headquartered in Charleston, WV. Haven’t heard of WV United? They have just six employees, $11 million in assets, and 3,000 members.

But somehow they were able to pull off something that no other financial institution has yet to accomplish, accepting paper check deposits via a native iPhone application (iTunes link, see note 1 and 2). The application was added to the iPhone App Store on July 4, and the CU wasted no time in heralding the innovation with a homepage banner (see screenshot below).

imageThe application could not be simpler. Users take a picture by pressing the button on the left (see inset), verifying that the image is readable, then uploading with the button on the right. WV United uses the member’s mobile phone number to apply it to the correct account. The latest iPhone OS 3.0 is required.

The credit union also accepts deposits via in-home scanners using secure file transfers powered by LeapFile (co-branded site here).

It appears both services simply send images to the credit union where an employee manually converts them to ACH items. According to the E-Deposit customer agreement, the first 10 items each month are free; a $1 fee per item for the remainder of the month is charged. This allows for collection of a bit of fee revenue from small business members, while enabling most consumers to use it free of charge.

Certainly, fraud possibilities exist. But the CU’s normal deposit-processing controls should mitigate most of the risk (see E-Deposit funds availability policy here). 

Mitek Systems introduced a mobile remote-deposit system last year (post here), but it’s not yet in production at any financial institutions. 

imageAnalysis: Although not a feature that will see widespread usage, mobile check deposits will prove convenient for certain customers, especially mobile small businesses. More importantly, it helps differentiate between online and mobile services.

So, for raising the bar in mobile banking, we are awarding WV United with our first OBR Best of the Web award for 2009 (note 3). In the 12 years we’ve given the award, WV United is by far the smallest financial institution to win. 

WV United FCU homepage with iPhone banner (11 July 2009)

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iPhone app landing page (link)

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Notes:
1. Sometimes it’s nice to be small. WV United has six employees total, according to NCUA data. Most large banks would have a project team larger than that just to do the feasibility study on mobile remote-deposit capture.
2. For more info on the importance of iPhone applications for financial services, see our recent full report: Online Banking Report: Mobile Banking via the iPhone.
3. OBR Best of the Web awards are given periodically to companies that pioneer new online and mobile banking features. It is not an endorsement of the company or product, just recognition for what we believe is an important development. WV United is the 74th recipient of the designation since we began awarding it in 1997.

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SmartyPig Deposits Up Ten-fold with High-rate Strategy

By Jim Bruene Posted on
Categories: Deposits, Checking, Savings, CDs, SmartyPig, Social Networks

image Maintaining one of the highest rates in the country, currently 2.75% (see note 1), SmartyPig’s deposits have grown ten-fold since January (see chart 1, below). And the company plans to continue its aggressive pricing and marketing, hoping to grow another five-fold to a half-billion by year-end (see chart 2, below) or 50x what they started the year with.

Deposits in the United States are held by part owner, Des Moines, Iowa-based West Bank. Australian deposits are held by SmartyPig partner ANZ Bank.

To help fund their growth objectives, SmartyPig announced today that Red McCombs, co-founder of Clear Channel Communications, has invested an undisclosed amount. McComb Enterprises lists one other financial services company in its portfolio, asset-based lender, Propel Financial Services.

Founder Jon Gaskell is pleased with the aspect of goal-based saving at SmartyPig. In an email yesterday he told me:

Of our customers who have reached a goal, more than 80% of them have started a new goal. The average SmartyPig goal length is nearly 4.5 years, and our average user is depositing a little more than $200 per month toward his or her goal. Fifteen months after launch, our data suggests that a vast majority of our customers are staying focused on their predetermined goals, and the deposits are “CD-like” in nature.

The half-billion-dollar question, assuming they meet their 2009 projection, is how sticky are the deposits when rates come down off the top of the chart?   

Chart 1: Actual deposit growth at SmartyPig

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Chart 2: Expected deposit growth through Dec. 2009

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Source: SmartyPig, 25 June 2009

SmartyPig homepage (24 June 2009)

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Notes:
1. In Bank Deals weekly list of highest savings rates, SmartyPig was number one on June 20 at 3.05%. The rate was lowered on June 22 to its current 2.75%.

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Bank of America promotes retirement planning at logoff

By Jim Bruene Posted on
Categories: Advertising & Promotion, Bank of America, Deposits, Checking, Savings, CDs, Retirement savings

image After viewing my credit card statement (personal and business) I was greeted with the following retirement planning pitch from Bank of America. I’ve recently seen similar banners on the bank’s homepage (though not today).

It’s not easy getting consumers interested in looking at their retirement situation when they are in the middle of an Internet session. There’s always something more pressing or entertaining to be done than worry about some distant event. 

So it takes extra effort to entice clicks. BofA has a good approach. The “Stop Guessing About the Future” hook is a good way to grab attention. And the colorful slider-based tool is easy to use and, most importantly, takes only a few seconds to deliver some meaningful results.

1. Bank of America logoff screen (2:25 PM, June 16)

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2. Landing page of promo (link)

The BofA tool uses a short bit of audio to get your attention and explain how to complete the short, five-step wizard. Users may turn off the audio using the button in the upper right. 

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3. Step 1 of 5

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4. Results page

  • Calculates your “retirement number,” the amount you need to have to bring your cash income during retirement to 85% of today’s value (similar themes have been used by Wells Fargo (here) and ING (here))
  • Shows range of possibilities based on a range of potential investment returns
  • Has two handy boxes showing when you’ll run out of cash and how much you need to add to your monthly savings to avoid that (also expressed in ranges)
  • Action plan in the lower right leads to some suggested courses of action, that the bank can help with, such as rolling over a 401(k)

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Note: For more information see our Online Banking Report on Selling Behind the Password, published in April.

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Has Mercantile Bank cracked the code for generating online banking fees?

By Jim Bruene Posted on
Categories: Deposits, Checking, Savings, CDs, Fee Income, Mercantile Bank of MI, Premium-level Products

imageWe are always on the lookout for examples of U.S. financial institutions charging fees for value-added services online (see note 1). In the past seven or eight years, the sightings have been rare. 

But today, we have a great one. And like most brilliant ideas, it seems pretty obvious in retrospect. The new service from Mercantile Bank of Michigan is called Funds Manager (PDF FAQs here) and it’s not only a great service innovation, but also promises to bring fees back to online banking.

How it works
Funds Manager is basically a consumer version of positive pay, a standard offering in commercial banking. In the commercial version, clients look at checks and electronic items being presented for payment, and can nix any that are fraudulent.

Mercantile launched similar capabilities for its retail customers, allowing them to peek at their pending checks and ACH items a half-day before they are withdrawn from their account (see note 1).

Between 11 AM and noon, the bank posts the checks that will be processed that evening, giving customers a few hours lead time to make a transfer to avoid an upcoming overdraft. Customers have until 5 PM to make a branch deposit or 7 PM to make an online transfer to cover a shortfall.

Mercantile’s online and mobile banking are powered by S1.

Business case
Sure, the service would impact OD/NSF income. But the bank makes up for that by charging a small fee, $4/mo, for the service. Given the type of customer who’d be drawn to this service, $48/yr should more than cover any lost OD income. And it provides a service that improves customer satisfaction and differentiates the bank from others. Business customers pay $30/mo, a potentially lucrative small-business service.

According to an article in Friday’s American Banker, the bank has signed up a quarter of its retail online banking customers for the service (558 of 2,361). While the $27,000 in annual revenues to Mercantile barely covers costs, if Bank of America experienced similar penetration, it would be worth more than $250 million per year, a nice boost to the online banking P&L.

Opportunities
Not only is consumer positive pay a nice standalone service, it could be the cornerstone of a premium online banking option that could be priced at $5/mo or more. 

It would be even better if users received email or text-message alerts whenever they had items to review. And it would be a great addition to an iPhone/mobile app where the items could be reviewed, and transfers initiated, right on the phone.

Notes:
1. Please email other examples to me or add them to the comments.
2. The advanced look does not include branch deposits, ATM transactions, wire transfers, or telephone transfers.  

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Chase Uses Branch-Based WaMu Checking Account Offer at Credit Card Login

By Jim Bruene Posted on
Categories: Advertising & Promotion, Channel Integration, Chase Bank, Deposits, Checking, Savings, CDs

image I spent the past few weeks looking at cross-selling efforts from within the secure online banking zone. But unfortunately, I came across the following example too late to be included in our report (see note 1). 

When I logged in to pay my Chase consumer credit card online (note 2), I was greeted with the following interstitial page (aka “splash screen”) inserted before the main account-management area (see first screenshot).

Chase is offering a $125 incentive to open a WaMu-branded free checking account (note 3). This offer may have something to do with the fact that I’m located in Seattle, the former headquarters of WaMu. The same creative was used in a statement insert and a banner ad across the main account-management page (see third screenshot).

Lessons:

1. Serving “more info”: In this example, Chase handles the info-serving process a bit differently than others I’d looked at recently. When selecting More Info on the splash screen, the bank opened a new tab (in Firefox 3) for the landing page (see second screenshot below). And while the user read the offer details on that page, the original tab automatically loaded the original destination (account management page), and the interstitial ad disappeared.

On the one hand, it’s convenient for the user to be able to look at the offer details and then quickly navigate back to the area they were originally logging in to. However, for more experienced users expecting a pop-up screen that can be quickly closed after reading, it can be momentarily confusing. There’s a risk the user will inadvertently close the entire browser session by clicking the upper-right “x,” necessitating an annoying restart and re-login.  

I’m not sure there’s a single right answer, but another variable worth testing – something I’d prefer – is a popup running in a smaller window in front of the original Chase page.

2. Branch-only fulfillment: I was surprised to see the offer can be redeemed only in branch. There is no way to sign up online. The landing page is actually actually a coupon users are encouraged to print with the page-dominating blue “print” button (see second screenshot below).

I can understand the rationale for pushing people into branches where they can be upsold other services. But in this quick-start age, I’m surprised there isn’t at least an option to apply online. Perhaps this is a test to see how a branch-only offer compares to online-only ones.

Chase Bank splash screen (interstitial) immediately after login
(30 April 2009, 1:40 PM Pacific)

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Landing page/coupon (opens in second tab in Firefox 3)

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My Accounts page

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Notes:
1. The results are compiled in our latest Online Banking Report: Selling Behind the Password. 
2. Tiny rant: I owed $2.45 left over from some extra finance charge even though I paid my bill in full online last month. It’s not so much that Chase didn’t earn the $2, that’s fine. What’s irritating is that they made me pay it right away by setting my min payment to $2.45. Come on Chase, I’ve had this account since the 1990s, you can float me the $2 until the next time I have a charge.
3. Interestingly, I already have a small business checking account at WaMu. Either the bank’s householding algorithm missed it, or Chase is making the offer to everyone in my Zip, or it still wants me to open a personal account to go with my biz one.

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New Online Banking Report Published: Selling Behind the Password

By Jim Bruene Posted on
Categories: Advertising & Promotion, Credit/Debit Cards, Deposits, Checking, Savings, CDs, Online Banking Report, US Bank, Wells Fargo

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We just posted our latest Online Banking Report.
It will be mailed to subscribers tomorrow. It’s also available online here. There’s no charge for current subscribers; others may access it immediately
for US$395.

———————————————————

Selling Behind the Password
Unlocking the marketing potential within
online banking

48 pages (published 21 April, 2009)

In this report (abstract), we go behind the login screen and report on the marketing and cross-selling practices of 15 financial institutions and card issuers.

Even among large banks, there’s a huge disparity in the amount of cross-selling efforts within online banking. Wells Fargo is the most prolific, with nine marketing messages and product placements alone on its main account-management page. The bank also uses login and logoff activities to display promotions (see screenshot below). On the other hand, US Bank has just a single link to an “offers page” buried below the fold. Most FIs fall somewhere in between.

We looked at the opportunities within six different areas:

  • Interstitial pages (splash screen) inserted after performing any online activity, especially after the initial login.
  • Banner and keyword promotions within the secure online banking area
  • Product placement within online banking and bill pay
  • Transactional upgrades
  • Page displayed after an online banking session has concluded (either through logout or inactivity)
  • Product/shopping/discount portals and third-party ads

The following financial companies were analyzed by logging in to actual accounts and documenting their sales and marketing efforts:

  • American Express business gold
  • Bank of America online banking
  • Chase credit card
  • Citibank business card
  • Citibank online banking
  • Discover Card
  • Everbank
  • First Tech Credit Union
  • ING Direct
  • Jwaala (demo only)
  • Mint
  • Netflix (non-financial)
  • PayPal
  • Revolution Money
  • US Bank
  • WaMu
  • Wells Fargo

Wells Fargo promotion displayed after logging out from online banking
(27 March 2009)

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Failure to Launch? Consumer Remote Deposit Posts Very Slow Growth

By Jim Bruene Posted on
Categories: Deposits, Checking, Savings, CDs, Market Research & Metrics, Remote Deposit Capture

image_thumb10_thumb2Two-and-a-half years after USAA was first to offer remote deposit capture to consumers via standard scanners (post here), it appears the technology has failed to gain much of a following outside business circles (notes 1,2).

Quoted this month in Digital Transactions magazine (PDF here, pp. 58-62), John Leekley, founder of RemoteDepositCapture.com, estimates that only 75,000 consumers (and apparently 1 cat, see inset) use the service, less than 0.001% of all U.S. households.

Some other numbers from the article by Jane Adler:

  • After 14 months, EasCorp, a CUSO out of Burlington, MA, has just 24,000 registered users across its 30 credit union installations, or 800 per CU (see previous post)
  • Other EasCorp metrics:
    • Average deposited check = $900
    • Average deposits per session = $1,200
    • Total amount deposited in past 14 months = $80 million
    • At $900 per item, that amounts to about 90,000 checks processed, or about 4 per end-user
    • Cost per deposit for CU clients is $0.25 per item for “higher volume” customers
  • The initial experience at First Command Bank is more encouraging: Since launching in November, First Command Bank has registered 1,600 users for its Deposits on Command across its online customer base of 65,000, for a 2.5% penetration rate (note 3). First Command has a total of 85,000 customers online and offline, so the overall penetration rate is about 2%.
    • Total remote deposits per month are 1,200; slightly under 1 per registered user per month
    • There is no fee for the service, but you must be an estatement user or have an investment account to qualify. Daily deposit limit = $5,000

First Command Bank homepage (14 April 2009)
Remote deposit capture (Deposit on Command) is one of two items that rotate in the top banner-ad slot  image_thumb1_thumb1

Notes:
1. We are referring here to CONSUMER remote deposit, not to be confused with the very successful business remote deposit.
2. In the same article, Fiserv was cited as projecting growth to 1 million users by the end of 2009, although there was no indication as to when the prediction was made or whether it included business users.
3. If Bank of America had similar usage, it would be well on its way towards 1 million registered users (625,000).
4. Photo from CheckFree/Fiserv

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MoneyAisle Introduces Multi-Auction CD Laddering

By Jim Bruene Posted on
Categories: Auction platforms, Deposits, Checking, Savings, CDs, MoneyAisle

image CD laddering is a great way to increase yield without sacrificing liquidity. Sophisticated savers have used the strategy, often at the suggestion of personal or private bankers. It’s not rocket science, but it takes a bit more planning.

It’s a trivial bit of logic to program a ladder tool into a computer or website, so it’s surprising that it’s rarely featured on banking sites (note 1). That may be because most financial institutions have dozens of product lines to nurture, and it’s difficult to justify the resources for speciality features.

That’s just the kind of thinking that creates market opportunities for startups like MoneyAisle from neoSaej. The Boston-area company, which made its public debut at Finovate 2008 (demo video here), is totally focused on deposits and can justify the investment in advanced features. In fact, their livelihood depends on it.

So it makes sense they’d be first to market with an automated CD-laddering tool. But what makes it especially impressive is that MoneyAisle users can run up to 30 simultaneous auctions placing funds in up to 30 different financial institutions (see note 2).  

In our test of a relatively simple, but typical, four-rung ladder (see below), four different financial institutions won the bidding:

  • MetLife paying 2.1% for a $25,000 3-month CD
  • First National Bank of Florida paying 2.3% for a $25,000 6-month CD
  • Wainwright Bank paying 2.5% for a $25,000 9-month CD
  • KeySource Commercial Bank paying 2.93% for a $25,000 12-month CD

And by distributing our funds into four different maturities, 3-month, 6-month, 9-month, and 12-month, we were able to increase the yield by 0.36% compared to putting it all into 3-month certificates. And we are still able to withdraw 25% of our funds every 3 months without penalty. To further increase yield, the shorter-term CDs could be reinvested into longer-term CDs at maturity, e.g., each CD could be rolled into one-year CDs at maturity to create a ladder of four 12-month CDs with one maturing every 3 months.

Advanced option: The advanced ladder is designed for users that want to spread their deposits around. The money designated for each CD maturity can be spread to two or three different banks if desired. Users may also choose up to 10 banks they want excluded from the bidding.

Simple CD ladder tool at MoneyAisle (11 Feb. 2009)

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 Results from the above auction: Four $25,000 CDs of varying maturities
(11 Feb. 2009)

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MoneyAisle’s Advanced laddering tool (11 Feb. 2009)

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Notes:
1. Bank of America has a Java-based laddering calculator here as does Citizens Bank (here) and Safe Credit Union (here).

2. The maximum number of simultaneous auctions in the simple ladder program (shown above) is 10.

3. For more information on MoneyAisle and other new lead-gen programs, see our Online Banking Report on Lead Generation and our recent report on Growing Your Deposits Online.

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neoSaej’s MoneyAisle Generates $100 Million in Deposits in Q4 2008

By Jim Bruene Posted on
Categories: Deposits, Checking, Savings, CDs, Lead Generation, Metrics & Market Research, MoneyAisle

image It’s so refreshing to have some real numbers to go on, even if they are self reported. Aside from Prosper, Lending Club (here), and most recently SmartyPig (here), few of the startups we track provide meaningful metrics on their operations. That’s why we use Compete website traffic estimates as a proxy for success.

Yesterday, MoneyAisle, the reverse-deposit-auction marketplace from neoSaej, released the following results for fourth quarter 2008 (press release): 

  • $1.65 billion in auctions run by consumers, up three-fold from Q3 2008 (note 1)
  • $100 million in deposits generated

That’s not a lot, but we can make a few estimates from that info (note 2):

  • Assuming 80 active bank partners, the average take per bank in Q4 was $1.25 million
  • But applying the 80/20 rule to those results means that 16 banks generated about $80 million in deposits, or $5 million each
  • And conversely, the remaining 64 banks brought in just $300,000 each
  • Assuming the average deposit balance auctioned was $20,000, five thousand separate auction winners funded a deposit
  • Assuming a commission of $37 per funded auction (note 2), neoSaej would have generated $185,000 in commission income in Q4, this is in addition to license fees and monthly maintenance fees

And for those of you who still want traffic numbers, MoneyAisle’s website usage (monthly unique visitors) has been trending upwards after suffering a post-launch dip in November. In December, visitors totaled just under 20,000. 

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Bottom line: It’s a promising start for the company which earned an OBR Best of the Web this summer, was picked by the audience as Best of Show in October’s Finovate (video here), and was recently chosen as a top-10 innovation of the year in our most recent Online Banking Report (here).

When MoneyAisle adds integrated online account opening (powered by Andera), results should be even stronger. 

Notes:
1. Deposit-generated total is 6% of total auctions run, because consumers are not obligated to make the deposit after they run the auction.

2. My speculative estimates, not provided from the company.

3. We outlined the company in a June blog post and in the pages of our Online Banking Report on New Models for Lead Generation and Online Banking Report on Growing Deposits in the Digital Age. 

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