Glenbrook’s Jacqueline Chilton is blogging from FinovateSpring 2011. This is one of several posts; you can find an index of our coverage here.
The format for Finovate is fast and furious. No PowerPoint – all demo. Each company has seven minutes.
- PayPal has opened up their platform to developers and banks
- Today they are demonstrating Money Messenger built by Discover and powered by PayPal
- Can handle friends and family person-to-person payments or transactions between individuals for sales of goods and services
- Transaction is a purchase on the Discover card and has no interest if balance is paid off at the end of the month
- No fees to the sender or receiver
- Cardholder earns Discover cash back bonus for the transaction
- Money Messenger has both an online and mobile interface
- PayPal can be used by financial institutions to create new bank branded services with PayPal inside
- Electronic banking solution covering online, voice and mobile banking channels for community banks and credit unions
- Focused today on security to protect against corporate account takeover
- Offer multifactor authentication and SMS one time passwords
- Announcing ActiveDefense that dynamically models user behavior and analyzes transactional data to identify and suspend suspect transactions.
- Real time risk and fraud analytics
- Behavioral learning model like Silver Trail but focused to smaller financial institutions needing a cross channel electronic banking solution.
- Allow users to build investment strategies and identify appropriate stock picks
- Some stocks have positive earnings, strong P/E ratio but negative free cash-flow. Robot Dough provides a more complete picture of a stock to help investors be educated about trades.
- In this demo they were announcing global capabilities for stock screening and a global cloud based back testing capability for stock performance
- The testing capability allows an investor to see how a strategy would have done over the past 10-20 years.
- The user can enroll in a stock strategy, invest and then track success with alerts against that strategy
- Looking to compete with ETrade and other online investing tools.
- These guys have been a regular at Finovate — they provide savings suggestions on purchase experience
- Java script insert adds relevant offers to a consumer’s online card statement (e.g., save money on wireless bills by analyzing bill details, TV, gasoline, etc.)
- The host bank can also use BillShrink to promote its own products
- Announcing mobile application and location sensitive offers.
- Using barcode technology for reward redemption in store.
- Some offers will only be available if you are close to the location e.g. Peet’s coffee discounts are not available on statements but are pushed to the phone when close to Peet’s
eWise – Payo
- US Bank with eWise NACHA Secure Vault Payments
- Online banking is the only enrollment necessary – no setup of a separate account and payment is made directly from the consumer’s checking account via ACH.
- This presentation comprised of 4 demos in the 7 minutes
- First they demonstrated an online purchases from an ecommerce site, redirected to the online bank portal, using the bank online banking credentials and checking account to make a purchase and then being redirected back to the merchant
- The merchant receives real-time notification of guaranteed funds for the purchase though the ACH is processed overnight same as all ACH transactions by the bank
- They also demonstrated a payment from a mobile device for:
- A CD from a scan of the QR code in a print ad
- The payment of a bill based on a QR code
- QR code at the point of sale
- Demonstrated multiple use cases but really SVP is the payment behind it all. They are agnostic to the transaction or channel. Once they have the information of who and how much, they make the payment.
- Having seen the mobile application at their booth, it was even more robust than could be shown in 7 minutes with offers and spend analytics displayed suitably to a smartphone interface.
- Launching soon….
- Invented a new way to invest in the world currency markets
- Trade Leader Investment performance is countercyclical to the stock market
- Investors can pick trade leaders to follow based on results, volatility and draw down
- As the leader executes a trade, the follower’s portfolio will execute the equivalent trade
- Debuting the Portfolio Builder which creates a visualization of trade results and risk
- We glossed over the risk, but for those looking for alternative investments – this is a new one.
- Person to person payments using Facebook friends to send payments without payment details
- Most of the transactions are made to people you know – friends / family
- Banks can set up their customers for Pay2face to use the Facebook platform for person to person payments
- The challenges here will be enrollment to get all the friends enrolled in the service to receive funds.
- Lunching the TILE financial profile for young people – under 30
- Challenge is that private bankers are disconnected from the under 30 set
- The TILE profile connects finances to how they live their life and to their financial advisor
- Have created games / quizzes to understand awareness of spend, interest in giving and top non-profits.
- There are badges to earn by creating financial budgets and completing tasks.
- “My Impact on the Market“– alerts to connect spend to company information to understand investments e.g. shop at old Navy and the home page shows the Gap Inc GPS financial and stock information
- 1 live and 2 planned roll outs with major financial institutions
- If young people will share the information online, it will be a gold mine of opportunity for financial advisors but the question is will there be sufficient assets under management available in this segment to make this profitable. TILE Financial Estimates $1Trillion is locked in this segment.
- Financial literacy resources for parents and teachers to educate tweens
- 2 years ago presented online game of financial education
- Launching Money Island for families and classrooms and Guru Island for graduates of Money Island to learn strong shopping habits
- The site can be customized for the financial institution and used for lead generation
- Parents register and kids can play to learn financial skills
- There is also a teacher panel to track students
- The parent becomes a lead to be transformed into relationship
- Kids win awards to be redeemed in person at a branch
- Financial literacy needs to be brought to our schools and to do that it needs to be entertaining and fun. Bank partners are encouraged to be part of the process to create positive long term relationships.
