3 companies worth watching from the Finovate conference
The Finovate conference held last week in NYC brought together some of the most creative minds in finance and technology. Nerd alert, I know—but fascinating, too! Here’s a pre-launch sneak peek at some of the nifty new products you may hear buzz about in the next couple months. (And let me say up front that I’m not endorsing any of these products—just think they might be interesting to watch.)
- BankSimple. The name says it all—a new, simpler way to bank, courtesy of an Australian (CEO Josh Reich) who moved to the States and found American banking to be the baffling, customer-unfriendly ordeal we all know it to be. Enter BankSimple, a web- and app-only service that tracks and categorizes your expenses a la Mint.com, but partners with FDIC-insured banks and credit unions to keep your money safe and accessible. Why choose it over your standard, storefront bank? BankSimple promises no surprise fees and no overdraft fees—any American consumer’s nemeses—plus plain, simple language that communicates a lot more than just your account balance and most recent transactions. For example, the most intriguing feature is the “safe to spend” balance—the cash you can spend now without jeopardizing upcoming bill payments (no math required). Curious to see if the final product lives up to the hype.
- SigFig. As you know, one of my big investment no-no’s is paying unnecessary fees. Problem solved: Plug in all of your investment info, and SigFig will spit out an analysis of your portfolio’s performance, including a detailed analysis of the fees and commissions you’re paying and how your investments stack up against other users. Co-founder Parker Conrad says he’s found investors who could save $3,000 to $107,000 (!) in fees and trading commissions. Overall, the company claims SigFig users will improve their portfolios’ performance by an average of 4%. The free service launches in a few weeks, so keep an eye out—and if you try it, let me know how much you really save.
- FamZoo. Teaching kids about money is my number one mission—and nothing warms my heart more than when parents are part of the process. With Famzoo, users can create a virtual family bank that lets them keep track of allowances, chores, and spending, with flexibility to set it up however they want (maybe allowances are tied to chores; maybe they’re not). When logging in, kids can see their balances shrink or grow depending on their saving and spending behavior. I like that it encourages kids to make their own money decisions early-on ($40 for one fancy top or three basic T’s?). It also builds in the habit of divvying income into three categories: spending, saving, and sharing. Plus, because it’s only a virtual (read: fake) bank, kids can still only access funds through your real wallet. The original service costs $2.50 to $5.99 a month (not ideal), but as the company partners with banks and credit unions, members of those institutions soon may be able to use the service for free. If your family gives it a whirl, let me know if it beats the old-fashioned (read: no-fee) piggy bank.
Would you try any of these services? If you do, post your reviews below!
