DoubleNet Pay Acquired by Benefits Provider Purchasing Power

Financial wellness platform DoubleNet Pay announced this week it has agreed to be acquired by Purchasing Power, an Atlanta-based voluntary benefit provider for employers. The financial terms of the deal, which closed on September 28, were not disclosed.

DoubleNet Pay was founded in 2013 on the principle of paying yourself first. The company’s platform helped users account for bills and savings goals before using their income on discretionary spending. Every time its users received a paycheck, DoubleNet Pay automatically separated the funds into three different accounts– savings, bills, and spending– to help users achieve financial freedom.

Purchasing Power, however, was most interested in DoubleNet Pay’s Workplace offering, a feature for businesses to help their employees gain financial security. As Richard Carrano, Purchasing Power CEO, explained, “This investment enables us to take a significant next step in our mission to provide expanded financial wellness products and services that will fill gaps not addressed by traditional employee benefit providers.” Purchasing Power will rebrand the service to fit into its existing offerings.

“We are excited that the DoubleNet Pay platform will be able to help Purchasing Power’s millions of eligible employees set proactive short-term savings goals and take care of monthly bill obligations automatically,” said Brian Cosgray, founder and CEO of DoubleNet Pay. “We have known the Purchasing Power leadership team for many years and are impressed with its passion for helping to improve the financial well-being of their customers.”

At FinovateSpring 2015, DoubleNetPay showed off how it takes the stress out of personal financial management. Last year, the Georgia-based company partnered with T. Rowe Price to integrate its online cash flow management tool into T. Rowe Price’s Retire With Confidence Program. Before its exit, the company had raised $4 million from Fuqua Investments and TTV Capital.

Finovate Alumni News

On Finovate.com

  • DoubleNet Pay Acquired by Benefits Provider Purchasing Power.

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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.

How Fintech is Disrupting the Modern Workplace

From the way payroll and benefits are administered to the nature of work itself, fintech innovation is helping build the 21st century workplace.

Will “pay day” be a thing of the past? How long until companies across the country are competing on the basis of their ability to help you pay off your student loans?

Technology has done much to change the nature of work in recent years. The same can be said for specific areas like financial technology. Here’s a look at how fintech innovations are making their own contributions to the 21st century “office”.

Getting Paid

Many of us work because we enjoy what we do. But whether you consider getting paid a top priority or just a perk, who wouldn’t love the flexibility of being able to get income when you need the money most – rather than on an arbitrary, twice a month schedule?

Companies like Gusto are among those making this possibility a reality. This summer, the payroll, benefits, and HR technology company introduced Flexible Pay, a new solution that enables employees to get paid on a date other than their employer’s standard pay date. Calling bi-weekly pay schedules a “relic” of the days when payroll taxes were calculated manually, Gusto co-founder and CEO Joshua Reeves has set out to prove that “with modern technology, employees shouldn’t have to wait weeks to get paid.”

The New Workspace

Even the word “telecommute” sounds more like something from a bygone time rather than the way a growing number of Americans are “going to work”. But the reality of remote employment for a growing number of people is here and fintech companies have both encouraged and participated in this trend. “Millennials simply don’t feel they need to be in the office, or at their desk, to get a job done — especially since the evolution of technology has made portability very possible,” Demetrios Gianniris, a director at MG Engineering, wrote for Forbes.com earlier this year in a post called The Millennial Arrival and the Evolution of the Modern Workplace.

To this end, innovations in mobile technology and messaging (consider Eltropy’s innovations in providing secure, compliant communications via popular messaging apps) have helped accelerate the revolution in remote work. There are also fintechs removing friction from some of the more mundane aspects of working outside the office. Expensify, for example, has partnered with Uber to make it easier for workers who use the ride-sharing service to separate business from personal expenses. And speaking of expenses, the tools offered by companies like Ondot empower workers to make necessary purchases while ensuring control and accountability for managers and employers.

Doing the Work

The flip side of the convenience that technologies like chatbots and IVR provide is that, for a growing number of financial professionals, these technologies are virtually co-workers. As machine learning and AI become increasingly commonplace, workers are more likely to rely on interacting with processes than communicating with people when it comes to getting their daily tasks done.

For financial advisors, fintechs are developing a wide variety of tools to make it easier for them to communicate with customers, and build highly personalized investment portfolios and financial plans. Onist, which announced a partnership with Quovo this summer, enables financial advisors to set up a virtual family office to facilitate collaboration between advisors and clients.

Technology also promises to make it easier for workers to leverage the work of other workers more effectively. One of the key insights of New York-based WorkFusion was the way a combination of machine learning and crowdsourcing of human talent could enable smaller businesses to “punch above their weight” when it comes to managing data. The company has since leveraged this technology to produce the first integrated RPA (robot process automation) and cognitive automation platform: Smart Process Automation (SPA) currently deployed in verticals including financial services, healthcare, and insurance.

Managing the Gains

Fintechs are in the lead when it comes to helping workers make better financial decisions. A firm like DoubleNet Pay helps employees manage cash flow by automating their billpay and savings obligations and coordinating payouts around paydays. Wealthucate, a financial wellness specialist out of San Jose, California, provides an automated financial wellness program that helps businesses enhance their own offerings. Wealthucate’s solution leverages gamification and personalization to increase the participation rate in benefit programs and help companies better explain their benefit offerings.

Among the more interesting ways that fintechs are helping workers manage their money is the approach by Student Loan Genius. This company enlists employers in the fight to help Millennial workers in particular pay off their student loans while simultaneously investing in their own employer-based retirement plan as soon as possible.

Fintech and the Work of the Future

It may be only a matter of time before we are able to watch the real-time flow of micropayments into our accounts or a be a part of a workforce in which most of us have both a robot supervisor and a robot subordinate. In any event, it is clear that whatever innovations the workplace of the future holds, fintech companies will be very much a part of making them happen.

Top image designed by Freepik

DoubleNet Pay to Power Cash Flow Management Tool for T. Rowe Price

Financial management technology startup DoubleNet Pay scored a partnership with investment services firm T. Rowe Price this week. The Georgia-based company announced on Tuesday it has integrated its online cash flow management tool into T. Rowe Price’s Retire With Confidence Program.

The savings automation tool empowers participants to manage their income by regularly deducting a select amount from their bank account to save towards goals such as emergency savings, bill payment, and debt management. Brian Cosgray, DoubleNet Pay’s founder and chief executive said that the purpose of the tool, which is available on T. Rowe Price’s Workplace Retirement website, is two-fold. It is intended to “help people easily pay their bills on time” and also aims to help users “start a savings fund before spending their money on discretionary items.” Cosgray added, “We hope making financial best practices automatic each pay period will boost positive financial behavior.”

Diana Awed, head of product and marketing for T. Rowe Price Retirement Plan Services said, “We’ve seen the impact automatic services can have on financial behavior, particularly with retirement savings, and believe the addition of DoubleNet Pay to our financial wellness program will encourage employees to get on the right path with their finances, including paying down debt, starting an emergency fund, and saving for retirement.”

Founded in 2013, DoubleNet Pay is based on the principle pay yourself first. In other words, bills need to be paid and savings accounts must be funded before discretionary spending takes place. At FinovateSpring 2015, the company’s cofounders Brian Cosgray and Cody Laird showed off how DoubleNet Pay takes the stress out of personal financial management. Earlier this summer, the company reeled in $4 million in its first round of funding. Last year, DoubleNet Pay earned a spot in Plug&Play’s accelerator program.

Finovate Alumni News

On Finovate.com

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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.

DoubleNet Pay Garners $4 Million Investment

Financial wellness company DoubleNet Pay closed $4 million in Seed funding today. The investment, which marks the Atlanta-based company’s first round of funding since it was founded in 2013, comes from TTV Capital and Fuqua Investments.

The 12-person company will use the funds to boost product development and bolster sales. To help fuel this growth, the company hopes to add up to 40 employees in the next year.

DoubleNet Pay aims to help the half of U.S. workers who do not have $500 saved for an emergency. With DoubleNet Pay, users build their savings by automatically deducting funds from their paycheck and depositing them into a savings account from which the funds can be withdrawn at any time. The platform is helping users save an average of $37 per pay period. DoubleNet Pay CEO Brian Cosgray said, “We automate emergency savings contributions on payday, similar to how 401(k) accounts are funded, or payroll taxes and health insurance premiums are paid.”

The company takes a B2B approach by selling its software to businesses to offer to their employees as a workplace benefit. “We found that employers are the best way to reach the people that need our help the most,” Cosgray said. “Most people’s only investment account is through the employer through their retirement plan.”

At FinovateSpring 2015, the company showcased its savings empowerment platform. In 2016, the company earned a spot in Plug&Play’s accelerator program. Earlier that year, DoubleNet Pay’s CEO Brian Cosgray was selected as an EBN Top 50 Benefit Technology Innovator.

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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.

DoubleNet Pay, Token Earn Spots at Plug and Play Accelerator

PlugandPlay_homepage

Two Finovate alums – DoubleNet Pay and Token – are among the 23 startups picked for the third cohort of Plug and Play’s Financial Technology Platform of Innovation.

The companies will spend three months of mentorship, “structured deal review, pilots, investments, and even acquisitions” with Plug and Play Fintech’s “ecosystem” of corporate partners. Companies are chosen by members of the Plug and Play venture team, as well as VC and corporate judges. The 23 startups will pitch their technologies to investors and industry professionals at Plug and Play’s EXPO in May.

Scott Robinson, founder and director of Plug and Play FinTech, pointed to its new corporate sponsors as a key to the program’s continued success. “This unprecedented level of support will result in new levels of innovation from our startups.”

See a list of all 23 companies.

DoubleNetPay_logo_box_snaggit_resizeDoubleNet Pay helps people better manage their finances by focusing on cash flow, or what the company calls “the problem of having ‘too much month’ at the end of the money.” The company’s technology tracks expenses and due dates, and schedules payments around payday cycles so that users know exactly how much discretionary spending they really have. Founded in 2013 and headquartered in Atlanta, Georgia, DoubleNet Pay was highlighted in Human Resource Executive Online last fall in a look at workplace wellness. The company, led by co-founders Brian Cosgray and Cody Laird, demonstrated its platform at FinovateSpring 2015. Check out our Finovate Debut feature from last August.

Token-LogoToken also made its Finovate debut at FinovateSpring 2015 (read our debut profile of Token), and followed up with an appearance at FinDEVr 2015 in San Francisco later in the year.  The company offers an end-to-end, secure payment system that uses digital signatures to authorize transactions instead of both “shared secrets” like passwords and account numbers, as well as traditional tokenization. Launched in 2015, Token was a winner at Innotribe 2015 New York last summer (along with fellow alums, SizeUp and Pendo Systems), and was a finalist in the BBVA Open Talent competition in August.  The company is based in Palo Alto, California.

Update: An earlier version stated the duration of the program at three weeks.

Finovate Alumni News

On Finovate.com

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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.

Finovate Alumni News

On Finovate.com

  • “Thinking Capital and Flybits earn Deloitte’s Technology Fast 50 Canada Awards”
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Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.