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Mobile Financial Apps:
the future of financial education and access?
October 16, 2012
Fifth Annual Financial Literacy Leadership Conference:
Financial Literacy as a Tool for Success
Carolyn Hall McMahon
Innovation Strategist, D2D Fund
©2012 D2DFund, Inc.
Agenda
Why should my organization go mobile?
 What can mobile do?
 Who does it reach?
How do I do it?
 Leverage Existing technologies and apps
 Build something new!
©2012 D2DFund, Inc.
Why go mobile?
What can mobile do?
 Mobile Apps can
o Educate about products and services
o Offer a simple interface and appealing design
o Reach people not served by formal financial services
©2012 D2DFund, Inc.
Why go mobile?
Who does Mobile reach?
 Mobile penetration is high
 87% US adults own a cellphone; 44% US adults own a smartphone
o (Fed Reserve 2012)
 Underbanked: higher usage rates compared to general population
 91% have a mobile phone; 57% have a smartphone
o Mobile financial services usage rates
• 29% of underbanked; compared to 21% of all consumers
 LMI population: lower but significant use
 HH earning less than 20k annually:
 75% own a phone; 20% have a smartphone
©2012 D2DFund, Inc.
Why go mobile?
 Mobile Devices for Internet Usage
 1/4 smartphone owners report their smartphone being their
main source of internet access
 1/3 of that population reports smartphone as only internet
access in home
– “Smartphone owners under the age of 30, nonwhite smartphone users, and smartphone owners
with relatively low income and education levels
are particularly likely to say that they mostly go
online using their phones.”
©2012 D2DFund, Inc.
Why go mobile?
Take Away…
 Since mobile is especially prevalent amongst
o Un/underbanked
o Younger generations
o Minorities
o People with low levels of income
There is potential to reach folks via mobile who
are not sufficiently served by formal financial
institutions.
©2012 D2DFund, Inc.
How do I go mobile?
Leverage what’s out there!
 App stores are already stocked with helpful
financial apps
 Banking apps and beyond...
• apps to teach and perform budgeting, saving,
• motivating smart financial choices
©2012 D2DFund, Inc.
How do I go mobile?
Build something New!
 A new approach to App Innovation:
 Public Challenges
o MyMoneyAppUp Challenge
o FinCapDev Competition
©2012 D2DFund, Inc.
Build Something New: The MyMoneyAppUp Challenge
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•
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MyMoneyAppUp Challenge June- August
Joint effort of US Department of Treasury, D2D Fund, and CFSI
300+ Ideas & 100+ App Designs
Submissions came from tech firms, non-profit organizations, and individuals…
•
I want an app that…
•
•
…lets me enter purchases and rate/track how happy they do or don't make me over
time, so I can adjust my spending accordingly.
…calculates the return on investment for college, based on expected net cost of tuition
at specific colleges and anticipated salary by major.
©2012 D2DFund, Inc.
Build Something New: The MyMoneyAppUp Challenge
 Lessons Learned
 Most popular category: budgeting apps
 Other trends
o
o
o
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Getting youth involved: saving, learning
Student loan management
Retirement
Niche markets: saving for a car, a home, educating student athletes
 Many proposals for apps that already exist
o What can we learn form this about outreach and strategy?
o Beware of creating a new app without a plan to drive use
©2012 D2DFund, Inc.
Build Something New: The MyMoneyAppUp Challenge
Financial Literacy App Ideas?
 “Learn about a financial topic”
o Not a popular category on its own
o Many submissions combine learning financial capabilities
with embedded action
• Make embedded action, like opening an account, a
“learning moment”
• i.e. teach kids about savings as they deposit into a mobile
piggy bank allowance app.
• How could an app add functionality or embedded action to
your curriculum?
Get inspired!
Check out all the submissions at
mymoneyappup.com
©2012 D2DFund, Inc.
your turn! Enter the FinCapDev Competition
©2012 D2DFund, Inc.
Build It: your turn! FinCapDev Competition
A nationwide challenge to develop new mobile
apps that will help working Americans make
smart financial choices and get better access to
financial services.
 October 2012 – December 2012
 Phase I: Qualifying Phase
o Contestants form Teams & submit App Design Proposals
 January 2013 – May 2013
 Phase II: Application Development
o 10-20 Finalist Teams are selected to receive access to resources
to support the development of a fully functional app
©2012 D2DFund, Inc.
fincapdev.com
 What you get…
 Phase I
 access to webinars on topics such as navigating
regulatory environment and maximizing impact
 Phase II
 startup stipends,
 expert advice from the financial services and
technology industries, and
 access to a robust network of investors, nonprofits,
leading product designers, and software
development toolkits, all from some of the most
innovative organizations in the world
©2012 D2DFund, Inc.
Ready to try your hand at app development?
 Register your team and idea
 Fincapdev.com
 Develop a proposal including the idea and any technical capacities to build
 Attend informational webinars for registrants
 More detailed information about development, FAQs, and best practices
 Hear from leaders in the field
o October 25, 6:00 PM EDT Facebook shares tips and tricks
 Gain an opportunity to be selected as an incubated team in Phase II
©2012 D2DFund, Inc.
The world of financial services is going mobile.
How will YOU help to shape this momentum to ensure
that financial education keeps pace and remains
inclusive?
Thank you!
Carolyn Hall McMahon
Innovation Strategist, D2D Fund
[email protected]
©2012 D2DFund, Inc.