Springwise - Financial Services

Bank's free tools help clients pay down their debt

2009-11-19T21:00:31Z

Credit card debt is an all-too-familiar topic for all too many consumers. While the US government is working on its own solutions to that problem, Chase Card Services recently rolled out a new set of tools designed to help its customers manage their debt better.

Chase Blueprint offers free tools consumers can use to pay down balances, manage everyday spending and pay off major purchases. Going well beyond simply helping users analyze their spending, Blueprint is fully integrated into customers' accounts, enabling them to create customized payment plans—changeable without penalty—and track their progress on every statement, literally spelling out "sofa" or "new laptop". The offering's Full Pay feature, for example, allows customers to decide which expenses they want to pay in full every month and set those purchases aside so as to avoid interest charges by paying them in full each month. Blueprint's Finish It tool, meanwhile, gives customers the flexibility to create a plan to pay down their current balance faster, allowing them to choose a goal payoff date. Chase does the math, calculates the monthly payments, sets up the plan and charts customers’ progress toward achieving their goal on each monthly statement and online.

Available to the 20 million or so users of the Chase Freedom, Chase Sapphire, Slate and Ink cards, the new Blueprint service is the result of a customer survey indicating that consumers want more control over their finances. Gordon Smith, CEO of Chase Card Services, explains: "Given today's economic environment, the kind of flexibility and control that Blueprint offers is especially important. Blueprint enhances Chase's partnership with our customers by helping them better manage their finances—setting them up for long-term success. This strengthens our relationship with our customers and helps make Chase their card of choice."

Indeed, with its focus on the challenges currently faced by many credit consumers, Blueprint is one part proactive perk and one part sympathy for those heavily burdened with debt. The lesson? Never forget that tough times are an opportunity to show you care!

Website: www.chase.com/blueprint
Contact: www.chase.com/ccp/index.jsp?pg_name=ccpmapp/shared/assets/page/email

Crowdfunding an Irish startup via Twitter

2009-10-27T17:08:42Z

Ireland has been particularly hard-hit by the current economic recession, spurring initiatives like the recent iQ Prize, whereby Dublin internet consultancy iQ Content awarded EUR 10,000 to a promising young Irish startup as a way to help kick-start the country's recovery. Proving once again that there are few things as contagious as a good idea, Outvesting has now launched a similar effort, only this time it's a grassroots one that's using a crowdfunding approach via Twitter.

Outvesting aims to give EUR 5,000 with no strings attached to an Irish startup. To make that possible, it's using Twitter to invite interested participants to contribute EUR 50 each towards the effort. Once EUR 5,000 has been raised—last week it was already up to EUR 4,500—Outvesting will announce how startups can apply. Those who donate to the fund, meanwhile, will get more than just good karma in return—they'll also get the chance to vote on which startup wins the money.

There's no arguing with corporate donations like iQ Content's, but those tend to be limited in number; crowdfunding approaches, on the other hand, are virtually limitless in what they can achieve. Combine the power of the crowds with the reach of Twitter, and there's no telling how far an effort can go. One to replicate in a recession-weary community near you...? (Related: Free Chinese lessons for the Irish — Crowdsourcing economic solutions for Ireland.)

Website: www.outvesting.org
Contact: twitter.com/outvesting — johnkeyes@gmail.com

Spotted by: AJ O'Flaherty

Canadian credit union gives people ten-dollar bills to give away

2009-10-15T20:26:19Z

Starting today, Canadian credit union Servus is handing out CDN 200,000 in ten-dollar bills, giving 20,000 people the opportunity to create a Feel Good Ripple by giving that money to someone else. Servus is asking customers "How will you use ten dollars to make someone's day?" Suggestions include 'buy flowers for the grocery store cashier', 'buy the coffee for the person behind you in line at the drive-thru' and 'give $10 to a homeless shelter to pay for lunch or dinner supplies'. By pledging CDN 200,00 to the effort, the company hopes to start a ' kindness movement' that will positively affect at least 20,000 people.

Servus is distributing the bills through its branches throughout Alberta, and asking participants to write up stories of their kindness—monetary or otherwise—on feelgoodripple.ca. By sharing their experience online or at a branch, participants have a chance to win one of ten CDN 500 donations to a charity of their choice. While the contest will end on December 1st, Servus hopes the Feel Good Ripple will continue long afterwards.

This type of sponsored charity—actively seeking customers' collaboration—is meant to underline the cooperative mindset of credit unions (as opposed to, say, banks). It's a prime example of a company applying the principles of Generation G, as our sister-site trendwatching.com calls the societal and business shift to a more generous mindset. (Related: Grocer lets customers direct its community giving — Customers deliver donated TOMS shoes.)

Website: www.feelgoodripple.ca — www.servuscu.ca
Contact: www.servuscu.ca/site+tools/contact+us

Investment account mimics other investors' trades

2009-10-12T17:48:51Z

For many consumers, investing can feel like throwing money into a black box and hoping to see some return on the other side. Aiming to bring increased transparency, personalization and control to the process, Covestor Investment Management has created a new type of account that lets investors follow the trades of the experts with their own managed funds.

The new Multi Managed Account (MMA) from CVIM gives clients "access to expert active management like a hedge fund within the security of a managed account," as the company explains it. Essentially, CVIM has recruited a number of proven individual investors with differing styles to manage investment models for others who would like to replicate them. Consumers begin by depositing a minimum of USD 10,000 with New York-based Covestor Ltd., CVIM's parent company and a registered investment advisor. They then complete a questionnaire to assess their tolerance for risk, resulting in a risk score that's used to determine the models they'll be able to choose from—specifically, those with risk scores equal to or lower than their own. From that set, clients select the particular models/investors they would like to follow and with what proportion of their funds. There's no limit to the number of models a client can subscribe to, as long as they put at least USD 5,000 toward each. Once they've made those allocations, the models they've chosen are auto-traded for them, in real time, in their own managed accounts at either TD Ameritrade Holding or Interactive Brokers Group. Clients can manage their accounts at any time using the CV.IM console, which shows their positions, transactions and performance in the models they're subscribed to. Annual fees range between 0.50 percent and 1.5 percent of subscribed funds. The investors managing the models, meanwhile, are compensated for their data based on the number of subscribers they have attracted.

There's no doubt that mimicking like-minded twinsumers can benefit anyone—whether in choosing a product or in investing funds, where understanding who's managing those funds also adds a degree of much-needed transparency. In addition, however, CVIM's MMAs are similar to separately managed accounts, an offering that brokerage firms have traditionally offered only to wealthy clients, according to a Wall Street Journal blog. In other words, the mass class trend strikes again! ;-)

Website: www.cv.im
Contact: www.cv.im/contact

Spotted by: Fred Wilson

Interactive piggy bank teaches kids about money

2009-10-05T06:04:45Z

Canadian enterprise Ekomini believes that teaching kids about money is as important as teaching them reading, writing and arithmetic. As an aid to parents, the company has given the traditional piggy bank a 21st century makeover. The Ekomini Treasure Chest features a patented coin-reader technology and hooks up to a computer via USB, enabling children to keep track of their savings and learn basic financial skills. The Ekomini package gleans pedagogical credentials from resident educational consultant Dr. Daniel Racine, who designed a platform to teach kids how to plan for purchases by setting goals, completing tasks and comparing prices; as they get older, they can also learn the basics of investment. Ekomini also aims to introduce kids to social responsibility by explaining important causes and showcasing charities.

Appealing both to creative consumers and potential licensing partners, Ekomini will also manufacture a separate coin-reader unit (minus the piggy bank), so that the system can be created using any type of coin receptacle. Speaking of partners, Ekomini is casting a wide net, targeting teachers, banks, retailers, charities and other manufacturers interested in licensing their design.

While products that target children are the scourge of cash-strapped parents, one that teaches future generations the value of saving could be worth its weight in gold. The product can be pre-ordered online and will be available in major retail stores in time for Christmas. One to check out if you're involved with financial services or children's products! (Related: Financial literacy for kids — Bank run by street kids — Facilitating kidpreneurs.)

Website: www.ekomini.com
Contact: info@ekomini.com

Spotted by: Judy McRae

Sears Christmas Club card rewards shoppers for saving

2009-09-17T20:46:11Z

In a bid to coax consumers into spending more at the store this Christmas, retail giant Sears is encouraging them to save first, using their Christmas Club card. Instead of functioning like a credit card (as many store cards do) the Sears card allows users to add value beforehand—just like paying money into a bank account. Providing they do this before November 14, members of the scheme who join before October 31 will be entitled to a handsome reward of 3% extra to spend in Sears, Kmart and associated stores. Compare that with current interest rates on checking and savings accounts and the attraction is obvious.

The scheme—inspired by old-fashioned Christmas clubs at banks and credit unions—could provide an incentive to save (and shop) for now credit-shy Americans, as they begin to emerge from the worst of the financial crisis. For the retailer, the Christmas Club system will guarantee them a share of the Christmas market in advance. (Related: Layaway is back.)

Website: www.sears.com/shc/s/dap_10153_12605_DAP_Christmas+Club
Contact: www.sears.com/shc/s/nb_10153_12608_NB_CSeMail?adCell=IWF

Spotted by: Judy McRae

P2P student loans for the developing world

2009-09-14T18:38:51Z

Entrepreneurs in the developing world have already benefited from peer-to-peer lending programs through the likes of Kiva, Wokai and Jolkona. Now aiming to bring similar benefits to students in those areas is Vittana, a Seattle-based foundation that focuses on educational loans.

Now in beta, Vittana partners with microfinance institutions (MFIs) throughout the developing world to catalyze new student lending programs. Potential lenders begin by browsing through the students profiled on the site—current examples include a 19-year-old woman studying industrial administration in Peru, for example, and a 25-year-old man studying financial accounting in Nicaragua. When they see one they'd like to help, they can lend as little as USD 25 toward that student's education. Vittana's local MFI partner—which has already verified that the students listed are hard-working and likely to succeed—then disburses the full amount of that loan to the student. Once the student graduates and gets a job, he or she starts paying back that MFI partner; when the loaned funds are fully repaid, Vittana returns to the lender the full amount that was lent.

We wrote last year about Fynanz and its peer-to-peer student loans, but it's nice to see similar capabilities being brought to students in the developing world. One to partner with, emulate, or otherwise get involved in! (Related: Fighting poverty through microloan guarantees.)

Website: www.vittana.org
Contact: customer-service@vittana.org

Spotted by: Ozgur Alaz

Crowdfunding for creative endeavours

2009-08-25T14:50:37Z

Crowdfunding has already received considerable ink on our virtual pages thanks to all the innovators out there who have applied it to bands, software projects and public schools, to name just a few. Now Brooklyn-based Kickstarter has picked up the concept and created a new site where artists, journalists, entrepreneurs, explorers and others can raise the funds for their next big idea.

Anyone with an idea for a new endeavour can post a description of their project on Kickstarter along with a deadline, a funding goal and incentives to encourage others to pledge financial support—a free T-shirt for pledging USD 25, for example. They also create an account with Amazon Payments, which will process backers' pledges. After browsing the available projects on the site, visitors can then make pledges towards the projects they like. If—and only if—a project's funding goal is reached or exceeded by the funding deadline, funds are collected from supporters' pledges and transferred to the project creator's Amazon account, from which they can access the cash—less the fees Amazon charges. Supporters, meanwhile, get the promised rewards along with access to project updates along the way. If, on the other hand, the goal isn't reached in time, all pledges are immediately cancelled automatically. In addition to raising funds for new projects, current Kickstarter members have used the free site for sales and to test out new concepts—a pop-up wedding chapel is one example.

Kickstarter is currently for use by invitation only, and because of Amazon Payments' policy, projects can only be started by those with a US address and bank account. One to emulate in your neck of the idea-filled woods...? (Related: Activism site ensures participation.)

Website: www.kickstarter.com
Contact: kickstarter.zendesk.com/home

Spotted by: Andrew Sargent

Financial calendar predicts next month's bank balance

2009-08-13T12:02:53Z

Taking a calendar-based approach to organizing personal finances, PocketSmith is a online tool designed to make budgeting easier than ever. Users input their scheduled salary, bill payments, rent and grocery bills and have each of these categories repeat weekly, fortnightly or monthly, which is made relatively painless through integration with Google Calendar, iCal and Outlook. PocketSmith then calculates all incoming and outgoing transactions to generate a six or twelve month forecast. Diving right into the ugly details, users can pick any given date and receive a predicted bank balance for that day. So there's no more wondering what will be left one week before (or after) Christmas.

If users are unhappy with their predicted balance, they can adjust their scheduled 'financial events' and immediately see the changes reflected in their projected cashflow, helping them set and aim for long-term goals. Subscribers can easily upload electronic bank statements; there's no need to supply confidential information.

While PocketSmith has joined a competitive arena—Mint seems to be the current leader of the webbased personal finance pack—its predictive powers could draw in a new crowd of consumers seeking to get a better grasp on their financial future. The basic version of PocketSmith is free, and subscribers can sign up for more premium versions at USD 5 and USD 12 per month.

Website: www.pocketsmith.com
Contact: www.pocketsmith.com/contact

Spotted by: Harriet Geoghegan

Get a mortgage, give a microloan for a home

2009-06-19T13:04:37Z

By taking out a mortgage with ING, Dutch borrowers can now help families in Bangladesh and India build homes of their own. Through its new Huis voor een huis (Home for a home) program, ING's clients are given the option of donating EUR 300 when they sign for their mortgage, an amount the bank doubles to EUR 600.

To maximize the impact of those donations, ING has partnered with Dutch non-profit Wereldfoundation. Instead of simply handing out the money, the foundation provides microfinancing; borrowers who have previously taken out a business loan and have shown that they're financially responsible, are eligible for a home loan. As the microloans are paid back, the money can be made available to more borrowers, with the goal of helping entire villages build new homes.

At a time when banks are seen as epicenters of avarice and incompetence, it's a well-considered approach to being generous. For many more examples of branded benevolence, check out trendwatching.com's Generation G briefing. (Related: Buy one house, give one free — Matching program doubles Kiva loans — Shoes for good.)

Website: www.ing.nl/huisvooreenhuis

Tracking (informal) online sales, no accountant required

2009-06-09T16:00:11Z

We've written about a few different sites focused on helping friends share expenses, including general-purpose BillMonk and Wigadoo for outings. Now a new contender out of Finland has come to the table with a novel e-commerce twist.

Scred—short for "street credit"—allows friends, groups and communities to manage their collective money. Its Pools feature, first of all, is designed to help friends keep track of who owes what during a joint excursion, for example. Friends all sign up for the same pool when they know they'll need to track expenses together, and then they input each cost incurred as they go along. The system will track debts between people, balance debts and shared expenses and then calculate who owes what in the end—even using multiple currencies. The Pools function is free to use, and is also available via mobile phone.

Perhaps even more interesting, however, is Scred's MiniCorps feature—now in beta—which can be used to take in money and have it automatically accounted by Scred. Aimed at users such as associations, trip organisers, charity groups and artists, MiniCorps serve much like virtual companies as they allow groups to sell items or collect fees and donations through a Scred shop, track both income and expenses, and calculate profits and losses. MiniCorps are free to use during the feature's beta period; all money is handled via PayPal.

With the growing number of sellsumers out there, eager to earn some extra cash during these tough economic times, we'd bet Scred's MiniCorps feature will be met with a particularly warm reception. What else could help sales-oriented consumers make the most of their bottom line...?

Website: www.scred.com
Contact: scred@scred.com

Spotted by: John Greene

Paying college students for good grades

2009-05-03T13:06:22Z

Back in March, we featured SmartyCard, a program for kids that combines educational games with virtual and real-world rewards. Focusing on an older crowd, GradeFund offers college students the opportunity to be rewarded for academic achievement.

GradeFund lets students recruit sponsors—usually friends and family—who donate money for each good grade. Participating students upload their transcripts at the end of each term and GradeFund verifies them and then collects funds from the sponsors, who can set their own criteria such as sponsoring students from their alma mater or choosing specific grade levels to sponsor. They can determine donation amounts for each grade, from as low as USD 5. GradeFund also allows employers to find students anonymously through their performance record, potentially netting students job and internship offers. So far, over 16,000 people have signed up for the program.

With the cost of college increasingly difficult for students (and parents) to cover, innovative programs that provide an alternative to loans and scholarships are only going to get more popular. If you're in financial services or education, time to get involved?

Website: www.gradefund.com
Contact: support@gradefund.com

Spotted by: Susan Johnston

'Open-mic nights' for business ideas

2009-04-16T08:58:43Z

Entrepreneurial types may already be familiar with Ideablob, the online community where big thinkers and small business owners can exchange feedback on their business ideas. Credit card issuer Advanta sponsors the site, which launched back in 2007, and now it's adding live events billed as "open mic nights" for great ideas.

Bloblive is a networking event that's essentially intended to be a live version of Ideablob: Attendees air their business ideas in front of a live audience of fellow participants in exchange for advice, feedback and connections. The first Bloblive was held in Philadelphia last fall; since then, it has been expanded to Nashville, San Diego and Los Angeles as well. Events are held several times a month, with entry priced at USD 10; both venue and "brain food" are provided. Memberships are also available for USD 20 per month, providing free access to all local events as well as pitch coaching, members-only breakfasts and other benefits. Bloblive events are also streamed online; updates are broadcast on Twitter.

Just because the economy is a shambles, that doesn't mean the end of entrepreneurship—in fact, in many ways, it's the ideal time to launch something new, as we've noted before. The swelling ranks of entrepreneurs, minipreneurs and sellsumers can use support both online and off—one to bring to (aspiring) entrepreneurs near you? (Related: Professional feedback, instant and peer-to-peer — Tech support for minipreneurs.)

Website: www.bloblive.com
Contact: hello@ideablob.com

Unlocking online assets in event of death

2009-04-14T09:44:06Z

Ever since the internet became an integral part of daily life, we’ve become accustomed to securing a wide range of online identities with usernames and passwords. But what happens when someone passes away, leaving their family and business associates unable to access their email, online photos, financial accounts and other online assets? It’s a problem that San Francisco-based startup Legacy Locker aims to solve.

Legacy Locker lets people store details for every online account they use, from Gmail and Facebook to eBay and PayPal. They can assign different digital assets to different beneficiaries, who are entrusted with access details in the event of the customer’s death or disability. Users can also prepare letters for the loved ones to whom they’ve entrusted their accounts. Legacy Locker, which launched last week, uses a multi-step verification process to ensure that the digital assets are as secure as a real safety deposit box. (Related: A virtual vault for information-age valuables.)

Website: www.legacylocker.com
Contact: www.legacylocker.com/support/contact

Spotted by: May Almero-Cruz

Credit card alternative designed for teens

2009-04-09T11:22:20Z

Handing over the car keys to a teen is probably one of the most terrifying acts a parent must perform, but next in line on the anxiety scale is surely handing over a credit card. Aiming to provide a safer alternative, BillMyParents gives parents the power to approve or deny any purchases by their teens before they're made.

Unlike facecard, which we wrote about last summer, BillMyParents is not simply a prepaid shopping card. Rather, it's a payment method that puts control in parents' hands. Teens do their online shopping at a participating online retail website—currently, only gift cards can be purchased, as the service is still being launched. When they check out using BillMyParents, their parents are notified of their requested purchase. Parents who approve of the purchase can then enter their credit card information to complete the transaction; otherwise, they can deny it and their teen will be automatically notified. Children never get access to their parents' credit card information, and control remains squarely in parents' hands.

Offered by San Diego-based Socialwise, BillMyParents charges USD 0.50 per transaction—a small price to pay, one could argue, for a little peace of mind. Currently, however, it's aimed only at US consumers. One to localize for your part of the world? (Related: Prepaid cab card: get home free.)

Website: www.billmyparents.com
Contact: info@billmyparents.com

Spotted by: Ozgur Alaz