This document summarizes a lunch and learn presentation about personal financial management technology. It includes an agenda with sections on an overview of the industry, highlights of two companies (Mint.com and LearnVest), and a guest speaker. It provides context on PFM tools and their goal to simplify personal finance. It outlines common business models and challenges. Breakout sections dive deeper into Mint.com and LearnVest's approaches and business models.

1. Personal Financial Management Technology
Lunch & Learn
November 20, 2014

2. Agenda
• News and announcements
• Personal Financial Management Technology: Overview
• Company Highlight: Mint.com
• Company Highlight: LearnVest
• Guest Speaker: Tom Vladeck
KNOWLEDGE FOR ACTION

3. Personal Financial Management Technology: Context
Personal financial management technology enables and educates consumers and small
businesses to better manage budgeting, monitor saving & spending, and optimize financial
decision-making
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• Online and mobile platforms that provide financial
advice and/or analysis to individuals and small
business owners
• Most PFM companies offer their services for free
or use a freemium model
• Managing your personal finances is becoming
increasingly complicated – the objective / mission
statement of PFM tech is to simplify, explain and
advise on personal financial matters
• One of the largest sub-sets of FinTech – 110+ companies, nearly $1B in funding
• Broadly applicable – everyone could be a potential user

4. PFM Tech: Industry Map
Personal Financial Management Sphere
Budgeting Tools (Save vs Spend) Financial Planning / Advice
Robo-advisers Credit Card Optimization
KNOWLEDGE FOR ACTION

5. PFM Tech: Business Models
PFM companies typically use two key monetization strategies: lead generation for
credit/investing products and/or paid premium services
• Targeted “advice” or
“recommendation” that drives
acquisition for other companies
• Typically a flat fee (e.g. $100 referral
per approved credit card application)
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1
2
Lead generation
Paid premium services
• Also known as a freemium model
– users get some, basic service for
free but have to pay extra for
additional value or service
• Larger PFM companies that can attract high volumes of page views (such as
Mint.com) also display ads and generate additional revenue by selling ad space

6. PFM Tech: Business Models (cont.)
How sustainable / lucrative are these business models?
Rewards Risks
KNOWLEDGE FOR ACTION
• Heavily dependent on current
economic conditions – if credit
dries up or consumers stop
applying for loans, lead gen
plummets
• Freemium model requires a
sticky product in order to be
successful
• Regulatory issues – CFPB can
question whether credit card or
other loan product
recommendations are truly
objective
• Very easy to implement – most
banks and other financial
institutions have ready-made
APIs for lead gen
• Freemium model enables
“mouse-trapping” – a free, sticky
product can drive significant
organic growth for the premium,
paid version (think Kim
Kardashian iPhone game
generating $100M+ annually)

7. Agenda
• News and announcements
• Personal Financial Management Technology: Overview
• Company Highlight: Mint.com
• Company Highlight: LearnVest
• Guest Speaker: Tom Vladeck
KNOWLEDGE FOR ACTION

8. PFM Tech: Targeted Deep Dive
• Launched in 2006: largest, most-well known PFM company
• Recipient of numerous awards and positive media coverage
KNOWLEDGE FOR ACTION
for its service
• Financial data aggregator – scrapes user’s bank, credit card,
investment and loan transactions and balances into one UI
• Acquired by Intuit in 2009 for $170M
• Claims to have over 10M users that are connected with
17M financial accounts
• PFM start-up launched in 2009 by a HBS student (Alexa von
Tobel), originally intended for women only
• Have raised about $60M in funding (up to Series D)
• Specialize in financial planning and consulting – paying
users are paired with a CFA who creates a customized
financial plan
• Promote financial literacy and education through a library
of articles and blog posts

9. Mint.com: Deep Dive
KNOWLEDGE FOR ACTION

10. Mint.com: Deep Dive
KNOWLEDGE FOR ACTION

11. Mint.com: Deep Dive
KNOWLEDGE FOR ACTION

12. Mint.com: Business Model
v
v
KNOWLEDGE FOR ACTION

13. Mint.com: Business Model
KNOWLEDGE FOR ACTION

14. Agenda
• News and announcements
• Personal Financial Management Technology: Overview
• Company Highlight: Mint.com
• Company Highlight: LearnVest
• Guest Speaker: Tom Vladeck
KNOWLEDGE FOR ACTION

15. PFM Tech: Targeted Deep Dive
• Launched in 2006: largest, most-well known PFM company
• Recipient of numerous awards and positive media coverage
KNOWLEDGE FOR ACTION
for its service
• Financial data aggregator – scrapes user’s bank, credit card,
investment and loan transactions and balances into one UI
• Acquired by Intuit in 2009 for $170M
• Claims to have over 10M users that are connected with
17M financial accounts
• PFM start-up launched in 2009 by a HBS student (Alexa von
Tobel), originally intended for women only
• Have raised about $60M in funding (up to Series D)
• Specialize in financial planning and consulting – paying
users are paired with a CFP who creates a customized
financial plan
• Promote financial literacy and education through a library
of articles and blog posts

16. LearnVest: Deep Dive
KNOWLEDGE FOR ACTION

17. LearnVest: Deep Dive
KNOWLEDGE FOR ACTION

18. LearnVest: Deep Dive
v
KNOWLEDGE FOR ACTION

19. LearnVest: Business Model
KNOWLEDGE FOR ACTION

20. Targeted Deep Dive: Summary
• Do-it-yourself model – Mint.com provides the tools, you are
KNOWLEDGE FOR ACTION
responsible for doing your own tracking, planning, and
analysis
• High number of users, but how many of them are actually
active?
• Likely little long term growth potential – essentially now a
low-cost revenue stream and customer acquisition platform
for Intuit
• Hand-holding model – aimed at users that care about
personal finances but don’t have the
time/energy/knowledge to use a Mint-type product
effectively
• Scalability is an issue – have to maintain a “call center” of
CFPs in Arizona and elsewhere
• Value-add is questionable – would you pay $600/yr for a
financial planner?

21. Agenda
• News and announcements
• Personal Financial Management Technology: Overview
• Company Highlight: Mint.com
• Company Highlight: LearnVest
• Guest Speaker: Tom Vladeck
KNOWLEDGE FOR ACTION

22. Cache: Behavior Based Savings and Investment
• Who I am and why I’m here
• Topologies of behavior – rough findings from discussions
with Wharton students
• Product concept: Cache
• Questions to answer + Roadmap
• Feedback + Q&A
KNOWLEDGE FOR ACTION

23. Topologies of personal financial management
KNOWLEDGE FOR ACTION
Savings
Checking
Expenses

24. Topologies of personal financial management
KNOWLEDGE FOR ACTION
Savings
Checking
Expenses
Investment
Accounts

25. Topologies of personal financial management
KNOWLEDGE FOR ACTION
Savings
Checking
Investment
Accounts
Expenses

26. Topologies of personal financial management
Checking
KNOWLEDGE FOR ACTION
Investment
Accounts
Expenses

27. Topologies of personal financial management
Savings
KNOWLEDGE FOR ACTION
Checking
Investment
Accounts
Expenses

28. Topologies of personal financial management
Savings
KNOWLEDGE FOR ACTION
Checking
Expenses
Investment
Accounts

29. Cache: Behavior Based Savings and Investment
• Who I am and why I’m here
• Topologies of behavior – rough findings from discussions
with Wharton students
• Product concept: Cache
• Questions to answer + Roadmap
• Feedback + Q&A
KNOWLEDGE FOR ACTION

30. Cache: Behavior Based Savings and Investment
• http://bitly.com/whartoncache
• Automated passive-investing tool based on behavior
• It learns your spending behavior, and whenever there is an
opportunity to save money, the service automatically
invests it for you
• It requires the user to sign up with their active cards and
link their checking account, and (maybe) choose some sort
of investment allocation
KNOWLEDGE FOR ACTION

31. Cache: Behavior Based Savings and Investment
• Who I am and why I’m here
• Topologies of behavior – rough findings from discussions
with Wharton students
• Product concept: Cache
• Questions to answer + Roadmap
• Feedback + Q&A
KNOWLEDGE FOR ACTION

32. Cache: Behavior Based Savings and Investment
Four questions to answer
• What will people use?
• How much will they pay?
• How much will it cost to acquire each customer?
• How big is the market?
Examples:
• Queue transactions or make them easily reversible?
• How much flexibility in investment do people need?
• Better to have a per-transaction or percentage fee?
• Better to partner with a “backend” provider?
Roadmap
• Refine copy on landing page
• Launch and get traffic (big question mark…)
• Iterate messaging and answer first four questions
• If enough signups, start developing the product
KNOWLEDGE FOR ACTION

33. Cache: Behavior Based Savings and Investment
• Who I am and why I’m here
• Topologies of behavior – rough findings from discussions
with Wharton students
• Product concept: Cache
• Questions to answer + Roadmap
• Feedback + Q&A
KNOWLEDGE FOR ACTION

34. Questions
@whartonfintech
Wharton FinTech
Wharton FinTech
whartonfintech.org
KNOWLEDGE FOR ACTION
Wharton FinTech
Sponsors