Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

20 nov2014 personal financial management_ve

1,273 views

Published on

Personal Financial Management presentation / lunch & learn from the Wharton FinTech Club!

Published in: Business
  • Be the first to comment

20 nov2014 personal financial management_ve

  1. 1. Personal Financial Management Technology Lunch & Learn November 20, 2014
  2. 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. 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 KNOWLEDGE FOR ACTION • 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. 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. 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) KNOWLEDGE FOR ACTION 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. 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. 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. 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. 9. Mint.com: Deep Dive KNOWLEDGE FOR ACTION
  10. 10. Mint.com: Deep Dive KNOWLEDGE FOR ACTION
  11. 11. Mint.com: Deep Dive KNOWLEDGE FOR ACTION
  12. 12. Mint.com: Business Model v v KNOWLEDGE FOR ACTION
  13. 13. Mint.com: Business Model KNOWLEDGE FOR ACTION
  14. 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. 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. 16. LearnVest: Deep Dive KNOWLEDGE FOR ACTION
  17. 17. LearnVest: Deep Dive KNOWLEDGE FOR ACTION
  18. 18. LearnVest: Deep Dive v KNOWLEDGE FOR ACTION
  19. 19. LearnVest: Business Model KNOWLEDGE FOR ACTION
  20. 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. 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. 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. 23. Topologies of personal financial management KNOWLEDGE FOR ACTION Savings Checking Expenses
  24. 24. Topologies of personal financial management KNOWLEDGE FOR ACTION Savings Checking Expenses Investment Accounts
  25. 25. Topologies of personal financial management KNOWLEDGE FOR ACTION Savings Checking Investment Accounts Expenses
  26. 26. Topologies of personal financial management Checking KNOWLEDGE FOR ACTION Investment Accounts Expenses
  27. 27. Topologies of personal financial management Savings KNOWLEDGE FOR ACTION Checking Investment Accounts Expenses
  28. 28. Topologies of personal financial management Savings KNOWLEDGE FOR ACTION Checking Expenses Investment Accounts
  29. 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. 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. 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. 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. 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. 34. Questions @whartonfintech Wharton FinTech Wharton FinTech whartonfintech.org KNOWLEDGE FOR ACTION Wharton FinTech Sponsors

×