Mobile Youth Banking: Union Bank’s Yuby is a Good Start for the Grade-School Set

yuby_homeEven if you don’t have young children, I’m sure you’ve noticed how even pre-teens these days are hunched over their smartphones. So, if you want to get your core customers’ kids engaged with the bank, your strategy pretty much must begin with, and can probably end with, mobile.

Banks haven’t really been able to devote resources to mobile youth banking as yet. The financial crisis hit at the same time the iPhone came out (unrelated, I believe), so it wasn’t really until the dust settled a few years later that v1.0 (adult) mobile banking was introduced. Now, most banks have a solid v2.0 in place and can start developing niche services for certain segments of their customer base.

Union Bank is one of the early entrants in mobile youth banking. It launched a dedicated app a year ago (press release) called Yuby (see landing page below). It was built for them by Mutual Mobile, an app developer which has also worked for Finovate alum Clover.

How it works
The app is very basic (see inset) and includes no ties to actual account data at Union Bank or anywhere else. Basically, it does just three things:

  1. Money tracking: Kids can add or subtract money from their virtual account, but only if a parent authorizes the transaction with a parental PIN—to be typed into the app on the child’s phone; there is no dedicated “parent app.” A simple transaction feed (below) shows the flow of funds in and out of the account.
  2. yuby_transflowBasic chore list: It’s easy to add a chore, but there is no tracking or integration with the child’s allowance.
  3. Wish list: The app includes an area to establish multiple savings goals. And it automatically explains how long it will take to save for the goal if the child’s entire allowance is devoted to it.

Thoughts:
This is a great way to start. It’s a simple app, which means no integrations, no security audits, or compliance issues. No personal info is saved (other than a photo), so privacy is not an issue. Basically, it’s a mobile version of a sheet of paper and a pencil. But it’s much more engaging to port those simple functions to a mobile app, where a child/parent can always find it.

This is a good app for the grade-school set. However, it needs a functionality upgrade for the teen crowd. While older kids can still use it, once they are old enough for a debit or prepaid card, the app needs integration to actual bank accounts, both the child’s and parents’.

Resources:
At our Finovate events, we’ve seen a number of youth-banking use-cases presented, usually around debit and/or prepaid. The most recent from CBW Bank, who just last week showed us a glimpse of the future with an iOT integration that would allow parents to control fuel purchases for a specific vehicle (video coming later this week here).

There have been a number of memorable youth banking demos over the years, though none were specifically mobile-optimized. Of the six listed below, only FamZoo and PlayMoolah are known to be active at this time. The other four, in our view, were simply too early, or too complex, to make a business out of youth-banking services. Here are links to the demo videos:

Finally, there is Skill-Life’s Money Island, which was Finovate’s first youth-banking demo in fall 2009. The company was snapped up in 2010 and is now the basis of BancVue’s financial education service.

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Union Bank Yuby Landing Page (link)

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Finovate Alumni News– September 20, 2013

  • Finovate-F-Logo.jpgWashington-based Connection CU now providing MoneyDesktop PFM services to members.
  • TA Associates completes majority investment in Arxan Technologies. Terms not disclosed 
  • DoughMain’s new logo wins an American graphic design award.
  • NPR’s Marketplace takes a look at Manilla and the rise of automatic bill pay.
  • Wall Street Journal column on innovation in banking features Finovate alumni mBank and Ignite Sales.
  • PaySecure International from Acculynk helps solve authentication problems for merchants accepting non-US cards.
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.

2012 Funding for Finovate Alumni– More than $450 Million Raised

Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgHere is a list of all the funding Finovate alumni received over the course of 2012.  

After an impressive 2011, where more than $423 million was raised, 2012 was even better, with more than $450 raised.
A few stand-out metrics for the year:
  • A total of 44 companies received funding, some more than once in 2012
  • Combined, more than $450 million was raised
  • The best quarter for raising capital was the first quarter when more than $150 was raised
  • The biggest funding month this year was March, with more than $68 million raised by three companies
Here is a month-by-month breakdown of funding received.
January — $25 million raised by 3 companies
Currensee: $2 million — blog post
Finsphere: $11.3 million — blog post
HelloWallet: $12 million — blog post
February — $57 million raised by 5 companies
Capital Access Network: $30 million — blog post
Dwolla: $5 million — blog post
Jemstep: $6 million — blog post
Kabbage: undisclosed — blog post
Xero: $16.6 million — blog post
March — $68 million raised by 3 companies
Boku: $35 million — blog post
eToro: $15 million — blog post
ThreatMetrix: $18 million — blog post
April — $2.5 million raised by 1 company
miiCard: $2.5 million — blog post
May — $55.5 million raised by 5 companies
Kony: $15 million – blog post
Pindrop Security: $1 million — blog post
SecureKey: $30 million — blog post
SoMoLend: $1.17 million — blog post
Yodlee: $8.3 million — blog post
June — More than $62 million raised by 8 companies
Affinity Solutions: $14.5 million — blog post
Arroweye Solutions: $3 million — blog post
Cartera Commerce: $12.2 million — blog post
Credit Sesame: $12 million — blog post
Doughmain: undisclosed — blog post
Lending Club: $15 million — blog post
Nutmeg: $5.3 million — blog post
Planwise: $200,000 — blog post
July — $6 million raised by 2 companies
Continuity Control: $1 million — press release
SaveUp: $5 million — blog post
August — More than $49 million raised by 6 companies*
DemystData: undisclosed — blog post
FutureAdvisor: $5 million — blog post
FreeMonee: $34 million — blog post
The Currency Cloud: $3.1 million — blog post
CashStar: $5 million — blog post
Continuity Control: $2.25 million — blog post
September — More than $59 million raised by 5 companies
Banno: $2 million — press release
Betterment: $10 million — press release
Edo Interactive: $15 million — press release
Fuze Network: $2.5 million — press release
Kabbage: $30 million — blog post
October — $37 million raised by 2 companies
The Currency Cloud: $1.9 million — blog post
Braintree: $35 million — blog post
November — More than $23 raised by 4 com
panies
ActivePath: $10 million — blog post
Jingit: $7 million — blog post
Bazaarvoice: $6.7 million — blog post
Xero: $49 million — blog post
December — More than $16 million raised by 4 companies
Waspit: $3 million — blog post
Controlabill: $570,000 (A$600,000) — blog post
Zopa: undisclosed — blog post
ShopKeep POS: $10 million – blog post
Clover Networks: $3.3 million – blog post
*In addition to the companies listed for August, On Deck Capital raised $100 million in credit facility commitments.
Note: Funding that companies received before they demonstrated at Finovate was not counted. Questions? Comments? E-mail us at Julie@Finovate.com or David@Finovate.com.

Second Quarter 2012 Funding for Finovate Alumni: Over $120 Million Raised

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This quarter’s funding of over $120 million closely matches quarter 2 of last year, when Finovate alumni raised approximately $124 million.

Meanwhile, compared to last quarter’s $150 million, Finovate alums pulled in around $30 million less this quarter.

Here’s the quarter 2 summary for 2012:

April — $2.5 million raised by 1 company

May — $55.5 million raised by 5 companies

June — Over $62 million raised by 8 companies

Note: Funding that companies received before they demonstrated at Finovate was not counted. If you know of any funding that is not on this list and should be, please send the name of the company along with a link to the funding information to julie@netbanker.com and we will add it.

DoughMain Receives Funding from Iacocca Family Capital, Acquires Allowance-Plus

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Financial education site, DoughMain, announced earlier this week it received an investment from Iacocca Family Capital. This investment marks the New Jersey-based company’s second round of funding since it launched in August 2011.

The undisclosed amount of money will help support the enhancement and expansion of DoughMain’s platform.

In unrelated news, DoughMain also announced it acquired Allowance-Plus, a site with a similar focus on financial education.

To learn more about DoughMain, watch its FinovateFall 2011 demo.

Finovate Alumni News– May 30, 2012

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgTradeshift to Offer Taulia’s Dynamic Discounting.
  • Startup Beat interviews CoverHound CEO, Basil Enan.
  • Acculynk and National Payments Corporation of India Announce Internet PIN Debit Partnership.
  • miiCard Launches Twitter Trust Campaign By Verifying Real Identities.
  • PaySimple Named Red Herring Americas Top 100 Winner.
  • Financial Post discusses Kashoo’s mobile distribution strategy.
  • High Beam Research reports on DoughMain’s financial education pointers.
  • TechCrunch reports BOKU Scales Up, Will Power Carrier Billing For In-App Payments In The T-Mobile Mall.
  • CU Times reports MoneyDesktop Adds 17 Credit Unions as PFM Users.
  • Check Point Introduces New Security Acceleration Module with Advanced SecurityCore Technology for High Performance in Low Latency Environments.
  • CNN Money Launches New Investing Home Page with StockTwits Trending Tickers.
  • Advocate’s Studio recommends Enloop for when you need a fast business plan.
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– April 25, 2012

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgTIO Networks named one of Canada’s leading tech companies, placed in Canada’s Branham25. See TIO Networks new tech at FinovateSpring.
  • SecureKey named  one of the top 25 up and comers in the Branham300 list of top tech companies in Canada.
  • Guardian Analytics launches fraud detection software for mobiles.
  • The Brainyard reports Bazaarvoice adds SAP, Salesforce.com integration.
  • Mortgagebot’s online lending tech supports 25% increase in loan production for Bank of Colorado.
  • DoughMain launches new savings tool for kids.
  • KeyBank launches new mobile banking solution with mFoundry.
  • SpendMatters covers Taulia. Come see Taulia’s demo at FinovateSpring 2012.
  • WSJ looks at US Bank’s implementation of FreeMonee.
  • Figlo expands Asia Pacific focus.
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– February 21, 2012

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  • DoughMain looks at how kids interact with their money.
  • Credit Union Times shares how Dwolla and PayPal are contributing to the P2P payments.
  • SteelSeries now allows shoppers to use PayNearMe for purchases, offers free shipping for trying it out.
  • Goldman Sachs Investment Arm & Buyout Group to acquire TransUnion.
  • CNBC features SecondMarket CEO Barry Silbert, who describes the up and coming community bank market.
  • CNNMoney describes how Kasasa helps credit unions.
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– November 21, 2011

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  • BrightScope plans to tweak its blog & redesign its homepage.
  • SimpliFi wins four Achievement in Marketing awards from Columbus chapter of American Marketing Association.
  • New York Shop Exchange interviews Brock Blake, Lendio CEO, about small business loans.
  • MyBankTracker looks at Yodlee’s FinApps and the evolution of Mobile Banking.
  • Fifth Third Bank launches mobile banking apps powered by Clairmail.
  • TechCrunch reports Braintree receives investment from Capital One co-founder, Nigel Morris.
  • Currensee launches Trade Leaders Program for institutional clients.
  • TechCrunch explores the differences between Mint.com and HelloWallet’s mobile apps.
  • Family blogger Darcy shares five of DoughMain’s features.
  • Xero doubles its customer numbers, gains traction overseas.
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– November 16, 2011

  • Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgApparel Retailer Aeropostale selects CashStar to provide e-gift cards.
  • CU Insight reports that Geezeo partners with IBT, a financial services innovator.
  • Dynamics’ Chip And Choice Technology wins 2011 CARTES Best in Show Award.
  • NY Daily News recommends LearnVest and DoughMain as resources for financial education.
  • Lendio inspires future entrepreneurs with $2,500 scholarship.
  • Arroweye approved to digitally produce Discover Cards.
  • ABA Banking Journal describes mobile banking, citing Celent’s report, “Innovations in Mobile at Finovate.”
  • Affinion Group to distribute Finsphere’s Mobile Transaction Monitoring service.
  • Betterment CEO Jon Stein interviews with top investment bloggers.
  • Centuryware discusses SecondMarket’s success.
  • Wonga CEO named Entrepreneur of the Year by European Tech Tour Association.
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.