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 • • • • 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 o 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.