February 2010 Archives

Here are the news headlines we posted recently on our Finovate Twitter feed (follow it here).

Acculynk and EFT Networks Establish Advisory Council -- Acculynk and partner EFT Networks have established the Internet PIN Advisory Council. The council brings together members of EFT's business network, including ACCEL/Exchange, Alaska Option, Credit Union 24, PULSE and SHAZAM. The function of the council is to establish the processes, procedures, rules and best PIN practices for PaySecure, Acculynk's software service for online debit payments. http://bit.ly/cxlCLv

CashEdge Launches Integration Kit - CashEdge has launched a new Integration Kit, making it easier for financial planning, customer relationship management, and portfolio management application providers to simplify the addition of aggregation services into their applications. http://bit.ly/9aSYKv

Credit.com in Money Magazine's Top 20 Websites & Fast Company's Top 10 Most Innovative Companies -- Credit.com has been listed at #7 among Money Magazine's top 20 best money websites. Other companies on the list include Mint.com, BillShrink, and Morningstar. Credit.com has also been included in Fast Company's Top 10 Most Innovative Companies list, where it ranks #7 in the finance category. http://bit.ly/cPzRT6

Mint.com Offers New Support Forum -- PFM Mint.com is implementing a new user support forum, supported by San Francisco company Get Satisfaction. The forum provides a support resource for Mint's nearly 2 million users. http://bit.ly/bg2FYW

Online Resources Launches iPhone App for PeoplesBank -- Online Resources launched a new iPhone app that provides mobile banking services to customers of PeoplesBank. The Massachusetts bank has $1.5 billion in assets and has been a client of Online Resources since 1999. http://bit.ly/bckTX3

SecondMarket Secures Second Round of Venture Capital -- SecondMarket, which provides a market for illiquid assets, has received $15 million in its second round of venture capital. The funding was provided by Hong Kong-based Li Ka-shing Foundation and Singapore-based Temasek Holdings (through its Dunearn Investments subsidiary). Each invested $7.5 million. http://bit.ly/bclL0J

SeerGate and Integrated Banking Technology Introduce Online Banking System -- SeerGate and Integrated Banking Technology have joined to launch SeerGate's Secured Lock System, a secure platform for real-time online banking transactions. IBT will include the Secured Lock platform among the outsourced service offerings it provides to financial institutions in the US and Canada. http://bit.ly/97bzXu

Sparkroom Partners with eBureau -- Sparkroom has announced a partnership with eBureau, a provider of information services for online marketers. The companies will work together to provide technology solutions to help advertisers and lead generators manage online consumer leads. http://bit.ly/c2Woj7

ThreatMetrix Partners with CyberSource -- Online fraud prevention company ThreatMetrix has partnered with CyberSource to provide advanced device identification systems for fraud detection. CyberSource provides more than 200 fraud detection tests and services, while ThreatMetrix offers systems for digitally profiling devices and their online behaviors. http://bit.ly/9w3SXH

Yodlee Officially Opens FinApp Store -- Yodlee has opened its FinApp Store, a platform where certified developers can create financial apps and distribute them to users of Yodlee-based PFM products. The FinApp Store supports both free and pay applications. Yodlee is also making its Software Development Kit available to FinApp Store developers, allowing them to work with the Yodlee data infrastructure. Yodlee demoed the store at Finovate2009. http://bit.ly/cWolZR

This is an exciting time of year for us because we're finalizing the companies that will demo their newest fintech innovations at FinovateSpring (May 11, 2010 in San Francisco). A great bunch of companies have applied for a chance to demo and we're incredibly excited to showcase their latest and greatest onstage.

Just a quick reminder that the very early-bird ticket prices will expire at the end of February (only 4 days from now). If you register this week, you'll save $200 on your ticket and lock in your spot to see debuts and demos of dozens of new financial and banking technological innovations.

Tickets are selling well with attendees from great organizations like: 

FinovateSpring is one of our twice-yearly showcases of the best new ideas in banking and financial technology. The show is built around a unique blend of fast-paced demos of actual technology (no slides!) and high-quality networking with an audience of senior FI executives, fintech entrepreneurs, VCs, press, industry analysts and bloggers. It's an awesome environment to find your next competitive edge.

Don't miss out on the best prices on tickets to this great show. Register now!

Since many Finovate alums compete in the online space, one measure of their success is the number of unique website visitors. Using traffic data from web-analytics company Compete, we reviewed visitor numbers for the 100+ companies that have demoed at Finovate.

Out of 104 sites, 44 (42%) had more than 10,000 unique visitors last month (see chart #1, below). Of those, 25 (57%) had more visitors than a year ago. Overall, 51 (49%) had traffic increases, with 37 (36%) more than doubling. There were 27 (26%) company sites that gained more than 5,000 visitors over the year (chart #2).

Notable traffic increases:

• FiLife, which has been running full-page ads in its sister company, The Wall Street Journal, moved to the top of the alumni chart, with more than 2.7 million U.S. unique visitors in January, up 16-fold over a year ago.
• Mint, now owned by Intuit, saw a record number of visitors in January, nearly 1.7 million. The company does no outside advertising, so the totals are completely from word of mouth and links on other Intuit sites (see Netbanker post here).
• ThreatMetrix and Home-Account, both went from zero to nearly 200,000 unique visitors, a phenomenal amount of traffic for a financial company in their first year of operation.

1. Finovate Alumni with More than 10,000 Unique US Visitors in Jan. 2010

Source: Compete, Feb. 18, 2010

2. Finovate Alumni with Year-over-Year Growth of at Least 5,000 US Visitors

Source: Compete, February 18, 2010

Notes:

1. We reviewed 133 unique sites. Data was unavailable for 28 sites because they had been acquired, were no longer available online, or had active sites that were not covered by Compete for various reasons, including some that were not US domestic companies.

2. At larger companies we tried to measure traffic to the sub-domain most closely aligned with the Finovate demo, e.g. www.checkfree.fiserv.com.

3. Numbers have been rounded to three significant digits.

4. The charts include companies that did not have measurable traffic in January 2009, indicated by a N/A.

5. Compete draws its information from the online activity of a panel of more than 2 million US Internet users. It is only an estimate of traffic, and may undercount at-work usage.

Here are the news headlines we posted recently on our Finovate Twitter feed (follow it here).

ClairMail Joins Jack Henry Program -- Mobile banking and payment services company ClairMail has joined the Jack Henry Vendor Integration Program. Joining the program extends ClairMail's mobile banking reach by integrating its mobile platform with Jack Henry's core processing system. http://bit.ly/aIkEoK

FiLife On Most Innovate Companies List -- Personal finance networking company FiLife has made this year's 50 Most Innovate Companies list, published by Fast Company magazine. FiLife was #27 on the list and #1 in the finance category. Other notable finance companies listed include Intuit, Yodlee, Simplifi, and Credit.com. http://bit.ly/9JMtCR

Guardian Analytics Releases New Online Security Tool -- Security software company Guardian Analytics announced on February 18 that it has released FraudMAP for Business Banking. The new software assists the detection and investigation of security problems in the multi-user business-banking environment. http://bit.ly/9tGVuk

HomeATM Promotes New Portable Card Reader -- HomeATM, a provider of mobile hardware for electronic payments, has developed a new portable card reader called CircleSwipe. The device, targeted to merchants, can be inserted into the audio jack of mobile phones. Home ATM expects to ship 30 beta units of the product in March. http://bit.ly/bjbIh3

Lending Club to Unveil New Look -- Lending Club announced a redesign of its website to make it more engaging and easier to use. The company is also revamping its logo and other aspects of its visual identity. In a move to promote its new looks, Lending Club sent an email to existing members offering a $150 bonus for loan applications submitted before the end of February. http://bit.ly/aDgvvy

Mint.Com Web Traffic Reaches Record Mark -- In January 2010, the Mint.com website reached 1.7 million unique visitors, a record high for the company and 600,000 more than a year earlier. This gives the online PFM about as much traffic as BB&T, the tenth largest retail bank in the United States. http://bit.ly/9cVjsj

TradeKing Reaches Account Milestone - On February 18, online brokerage TradeKing announced that it has crossed the 200,000-account threshold. TradeKing has seen account openings increase more than 50% since December 2008. http://bit.ly/bNYvlP

WorkLight Announces Development Platform for Android -- WorkLight has announced the release of The WorkLight Solution for Android, a new platform supporting the development of mobile apps for the Android phone. The platform provides built-in security features, development tools, and easy publication to the Android Market. http://bit.ly/9mpuT8

In other news, the company was named as a finalist for Red Herring's Global 100 award, which lists the year's most promising technology ventures. Red Herring selected the potential winners from out of 1,200 companies. http://bit.ly/5w9jKZ

Credit Karma allows users to track their credit scores free of charge. Since interest rates and credit ratings fluctuate, most consumers can save money if they know where to look and are willing to spend time switching accounts.

The new Dashboard tool automates the discovery process, finding offers for consumers and presenting them with a personalized page of deals. (FinovateStartup 2009 video here.)

How it works

1. The user registers at Credit Karma. The site uses the consumer's social security number to pull their credit score with a soft inquiry that does not impact the user's credit rating.

2. Consumers can come back at any time to view their current credit score.

3. When the user logs in, the system automatically shops for competitive deals. This shopping process is performed anonymously, with no personal details disclosed to advertisers.

4. Tabs across the top of the webpage lead to custom offers based on the user's credit report and optional financial information provided to Credit Karma, such as the make and model of a vehicle. For example, savings account holders will be presented with alternative accounts with higher interest rates (see screenshot #1, below) or credit card offers for card holders (screenshot #2).

5. The Dashboard provides direct links to the advertisers to take advantage of the offers.

Web traffic at Credit Karma has been growing steadily. The site currently boasts more than 400,000 unique visitors per month, more than double the volume a year ago.

Compete.com Feb. 2010, traffic data

Credit Karma also announced that it quadrupled its users in 2009 and now has more than one million subscribers.

#1. The Dashboard Presents Savings Accounts ...

Note: In my case there were no savings found, but there is usually a positive number displayed. One of my colleagues had more than $1,000 in savings offered.

#2. ... and Credit Card Plans

BancVue powers high-yield checking and other products for more than 650 U.S. community financial institutions. The company debuted its Kasasa branded checking/saving accounts at FinovateFall 2009 (video here).

CentsCity presents an interactive online environment developed for children between eight and 12 years old. (See screenshot #1, below.) Players visit different locations in the game world to play mini-games using ducats, the in-game currency. The game requires players to monitor their in-game cash and expenses in order to continue participating and eventually save enough ducats to earn rewards (screenshot #2).

The game also includes an interface for parents, allowing them to insert personal incentives, such as extra TV time or an extended curfew, to encourage their children to play and learn. Skill-Life hopes to entice parents into setting up game rewards, such as savings accounts that must be unlocked in the game before the children can access the funds.

Financial companies can add their own branding into the game environment.

Skill-Life's current business model primarily depends on licensing to financial institutions and groups like school districts and community organizations. Players can also access the game at Skill-Life's website, choosing between free and a more advanced pay-version of the game, which charges a one-time fee of $4.95.

#1. CentsCity Presents a World to Explore

#2 CentsCity Players Learn to Save for Rewards

Here are the news headlines we posted recently on our Finovate Twitter feed (follow it here).

AlphaClone Introduces New "Activist Masters" Fund Group - Investment research firm AlphaClone develops "clones" - replications of the investment patterns - of top investors. The company has announced a new clone, which follows the investment performance of 15 renowned activist investors including Carl Icahn and ValueAct Holdings. http://bit.ly/cCHeAw

BancVue Acquires Game Company Skill-Life -- In its first corporate acquisition, BancVue announced on Feb. 9 the purchase of Skill-Life, a software company that develops interactive games designed to teach financial literacy to children between 8 and 12 years old. http://bit.ly/mnqr5

CashEdge Integrates Data Solutions with Neuralus -- Account aggregation service CashEdge and Neuralus, a developer of intelligent financial solutions, have agreed to integrate their technologies to offer automatic updates of banking and credit card transactions for Neuralus clients' Cashflow INSITE accounts. http://bit.ly/aFJLeX

Geezeo to Provide Online Platform to 1^st Mariner Bank -- Geezeo has been selected by 1^st Mariner Bank to provide its online consumer finance platform. Geezeo offers online banking solutions including personal finance management, account access services, and community marketing. 1^st Mariner is a Maryland bank with 24 branches and more than 14,000 ATMs. http://bit.ly/c0ZA6i

iBearSoft Delays Release of Desktop Client iPhone app -- iBearSoft has delayed the release of its previously announced Desktop Client, a support application that will allow users to more easily add data to the company's iBearMoney iPhone app. The delay will allow developers to improve the design and offer simpler functionality. http://bit.ly/aJJ7jY

Jwaala Adds Twitter and Skype Options -- Jwaala has added Twitter and Skype capabilities to its MoneyTracker BOB (Better Online Banking) platform, allowing them to be used to deliver consumer alerts. The alerts allow financial institutions to contact their clients with transaction, credit, and security information. http://bit.ly/b0umqH

Kasasa Adds Atlantic Coast Bank and Security Bank -- Two new banks have agreed to carry Kasasa brand checking account products. Atlantic Coast Bank, which operates in Georgia and Florida, will offer Kasasa Cash and Kasasa Saver accounts. Security Bank will offer all four Kasasa products in Illinois. Atlantic Coast is the first Georgia bank to offer Kasasa branded products. http://bit.ly/daQXk1

Mint.com Offers New Online IRA Center -- Online personal finance service Mint has a new IRA Center website where visitors can compare Roth and traditional IRAs and can link directly to financial institutions that offer retirement accounts. Users of TurboTax software can access the IRA Center from within the application. Mint's new IRA site is located here. http://bit.ly/9eTlD9

Monitise Americas to Launch Android App -- Monitise Americas announced plans to launch a mobile banking app developed for Android phones. The app, which will offer account management, payment, and commerce services, will be available as a free download and will be compatible with all Android phones. http://bit.ly/cCcb3I

Outright.com Adds Editing Feature to its 1099 Tax Filing Service -- Outright.com has added a new feature that allows users to edit the IRS 1099-MISC tax forms generated by its new online 1099 filing service. Users can also edit related company and contractor information. Making changes in the forms does not automatically re-file them with the IRS, but users can do so from the Outright site. http://bit.ly/cPf8i8

Prosper Receives Bridge Financing, Plans Series D Fund Raising -- Prosper has received $2 million in bridge financing from its existing investors: Accel Partners, Benchmark Capital, DAG Ventures, Meritech Capital, Omidyar Network, and Volition (formerly Fidelity Ventures). Prosper is preparing its next fund-raising effort and intends to announce its Series D round soon. http://bit.ly/beljVA

SmartyPig to Move Savings Deposits from West Bank -- SmartyPig is a technology company that mixes savings accounts with social networks, allowing users to create an e-savings account for a particular goal. The company is moving its deposits from West Bank, which stated that it would not be able to keep up investing the deposits. Deposits linked to SmartyPig grew $179 million in 2009, and totaled $187 million at the end of the year. SmartyPig expects to transition to a larger bank in 2010. http://bit.ly/9VTC9m

Billeo

Billeo makes its money by partnering with card issuers, to help them increase usage. The idea is simple: The best time to display card incentives is when consumers are shopping. According to Comscore, 70% of online purchases begin with a search, so Billeo tools make the rewards visible right on the search-results page. The company's Offer Assistant highlights special deals from loyalty programs offered by American Express, Visa, Discover, Bank of America, Chase, and other credit providers. (Finovate video here.)

Partnering with Bing gives Billeo the top three players in the U.S. search engine market, representing about 97% of U.S. searches. According to data from Comscore, Microsoft sites grew from 8% of the online search market to 11% in 2009, largely due to the introduction of Bing in June. Google continues to dominate the market at about 66%, with Yahoo coming in second at about 20%.

Billeo's partnership with Bing is mutually beneficial. Bing has its own incentives program, which offers cash rebates to certain online purchases, provided consumers use Bing to search for their goods. Offer Assistant highlights these offers, drawing attention to Bing's services. Billeo even makes Bing rewards visible on searches conducted using Yahoo! and Google, advertising Bing's rewards program to users of rival search engines. And of course, the deal allows Billeo to promote its Office Assistant product to consumers who prefer to search on Bing.

How Offer Assistant Works

1. In order to use Offer Assistant, users download Billeo's free browser plug-in. The plug-in, which works for Internet Explorer and Firefox, includes the full suite of Billeo services. Users also have the option to download just the Form Filler application. The full suite includes:

• Offer Assistant, which notifies consumers of special offers from Billeo partners
• Bill Pay Assistant, which manages online bill payments
• Shopping Assistant, which helps consumers track their favorite shopping sites so they can return to them easily
• Password Assistant, which helps users log in to online stores
• Form Filler, which stores consumer data to quickly populate online forms
• Save and File, which stores payment confirmation notices and receipts

3. Clicking the icon provides more information and a direct link that can be used to claim the offer. (Screenshot #2.)

4. Clicking the link takes the user to the vendor's webpage. If the user chooses to make the purchase, the Billeo add-on helps them complete the transaction by filling in the order forms, reminding them to claim the special offer, and saving the order-confirmation information provided by the site. (Screenshot #3.)

Billeo continues to attract more than 100,000 monthly unique visitors. The company's 2009 peak was in February with 215,000 visitors.

Compete.com Jan.2010, traffic data here

#1. Billeo Add its Icon to a Typical Product Search

#2. Clicking Expands the Icon for More Details

#3. Billeo Highlights the Deal at the Vendor's Website

Here are the news headlines posted recently on our Twitter feed (follow it here).

Billeo's iPad Sweepstakes -- From Feb. 4 to April 5, Billeo is offering an incentive for new users. Sign up to Billeo and be entered into a sweepstakes to win a new iPad. No purchase is required, but you must download the Billeo app and register. http://bit.ly/7JU7q3

Credit Karma Adds Users and New Tool -- Credit Karma doubled its users in 2009 and now serves more than 1 million users. On Feb. 3, the company announced its new Savings Dashboard tool, which helps consumers capitalize on improvements in their credit scores. www.creditkarma.com

Expensify Launches Palm Pre App -- Expensify has released a new app for the Palm Pre that scans receipts and tracks expenses. The company already has apps for iPhone, Blackberry, and Android. http://is.gd/7B22C

GreenSherpa Wins Catalyst Competition Award -- Social networking company Girls in Tech and broadcast platform Vator.TV have announced the winners of their joint Catalyst Competition honoring women-led startup companies. GreenSherpa was among the five winners selected. Other winners were AccessDNA, BakeSpace, MyLawsuit, and Marriage.com, with Graspr winning the popular vote. http://bit.ly/dw7HU1

Intuit Launches PFM product in India -- Intuit has launched a new financial software product in India. The new Intuit Money Manager application aggregates account data and allows users to view real-time information about their expenses. The tool can also track investments, insurance, and other financial instruments through Intuit's collaboration with Moneycontrol.com. http://bit.ly/9N1xMs

Mortgagebot Reports Growth in Users and Revenue -- Mortgage technology provider Mortgagebot reported a 25% growth in revenue for fiscal 2009. The company also gained about 200 new clients in 2009 and now serves nearly 950 clients. http://bit.ly/c9ugjC

Silver Tail to Present Webinar -- On Feb. 23, Silver Tail Systems will present a free webinar on screen injection, a new hacking technique threatening the security of online banking sites. Silver Tail's founder, Laura Mather, Ph.D., will provide detailed information on the hacking technology. http://bit.ly/caqtH8

Free online bookkeeping site Outright.com has added its first fee-based service for small business owners.

Outright provides online tools to help small businesses track and manage their finances. The company focuses on single-owner enterprises that require accounting systems that are fast and easy to use. The Outright.com site imports data directly from the user's bank or other financial services provider to populate reports and tax forms. (Finovate 2009 video here.)

The company's new service helps business owners manage 1099 tax forms for contractors. Using data from the W-9 forms that businesses collect from employees, Outright.com automatically fills out the required IRS 1099-MISC forms, electronically files them with the Internal Revenue Service, and sends copies directly to the contractors. (See screenshot #1 below.)

Unlike other services at Outright, the 1099 tax form product isn't free. The company charges $5 per filing. But for each contractor that joins Outright, the company will refund the fee. Outright plans on introducing more fee-based services in the future.

Along with the launch of its 1099 service, Outright also launched a new tax information website, Right Taxes Now. The new site provides tax advice and offers opportunities to sign petitions regarding small-business tax-relief legislation. It also provides links to services offered at Outright.com. (Screenshot #2)

Both the new tax product and the Right Taxes Now website should help bring users to Outright's site. According to traffic data from Compete, Outright.com saw about 54,000 unique visitors in December, down from its 2009 peak of nearly 71,000 in November. The Right Taxes Now site was launched on January 20 and traffic data is not yet available.

Compete.com, January 2010, traffic data here

#1. Outright's 1099 tax service

#2. Links to Outright from Right Taxes Now

#3. Outright.com helps users track income...

#.4 ... and expenses

BillShrink, which provides money-savings advice to consumers, has expanded its offerings to include a new feature for business owners.

BillShrink offers online tools to help consumers find the best prices on goods and services in markets where comparison shopping can be difficult. The company collects geographic and usage data from the consumer in order to create personal recommendations. BillShrink currently offers price comparison services for cell phone plans, savings accounts/CDs, credit cards, and gas stations. (Finovate 2009 video here; FinovateStartup 2009 video here.)

The company's new BillShrink for Business service helps businesses find better credit card deals. The company currently has online tools in the works for comparing business wireless phone services and savings accounts.

How it Works:

1. The business owner goes to the BillShrink for Business site and answers two basic questions: Do you pay off your credit card monthly? And what is the annual revenue of the business?

2. Next, the site collects more detailed data about the card usage, followed by questions about what services the user values in a credit card account. (See screenshot #1, below.)

3. The last personal detail required is an email address.

4. The system presents a quick analysis of the user's current credit card (screenshot #2) and then recommends money-saving alternatives (screenshot #3). Clicking on a link that reads How is this calculated provides additional data, showing the value of cash rewards and other incentives that may come with the new card.

5. At the bottom, there is a link to apply for the recommended card at the card-issuer's site. (Screenshot #3.)

BillShrink is paid by retailers when consumers switch to the suggested products. Offering its comparison-shopping services to businesses expands the company's market, allowing it to draw a new category of shoppers to the site.

According to traffic estimates from Compete, the BillShrink site saw about 150,000 unique visitors in December, slightly less than its median average for 2009. Site usage peaked in summer with about 490,000.

Compete.com, January 2010, traffic data here.

#1. BillShrink collects basic usage data

#2. Analysis of current credit card (highlight added)

#3. Recommendations for a new credit card