TD Bank is entering into a partnership with Moven to help customers keep track of their finances. The new app will not only allow users make purchases using their smartphones but will also keep track of every purchase. In effect, this provides an analysis of the user’s financial health. The app also categorizes the various purchases made by the user to keep track of the areas where expenditure is more. By enabling personal finance management (PFM) through the app, Moven is helping TD Bank in incentivizing savings.
By partnering with Moven, TD Bank is hoping to reintroduce the concept of PFM among its customers. The Moven app would offer updates and information on spending habits to users upon each purchase. This is an opportunity for TD Bank to differentiate its smartphone app from that of other banks. The app usage would also generate data which the bank can use for analysis of customer spending behavior.
Here’s how the PFM service looks on your smartphone:
The partnership with Moven is part of TD Bank’s strategy to further delve into the mobile finance domain. Last month, the bank also announced a partnership with UGO, a mobile wallet platform. This partnership was aimed at helping customers digitize credit and loyalty cards for use on smartphones. The partnership with UGO helped launch a service to automate purchases and loyalty card point collection process.
The partnership with a prominent bank like TD helps Moven expand its user base. In August, Moven had partnered with Westpac to gain access to around 500,000 users in New Zealand. With the partnership with TD, Moven could add 3 million to 4 million users in the next few years. For Moven, both Canada and New Zealand are highly attractive markets because of high mobile payment penetration. Moven will now have a presence in Canada, New Zealand and Australia with its user base reaching 5 million.
Brett King, Moven's founder and CEO, said to The Globe and Mail: “If you want to get people to save money, you've got to stop them from spending, so we're helping them understand where they’re spending money. What we start to see, after three to six months [of usage] is that people’s spending in certain categories – dining out, catching taxis – starts to level off.”
Rizwan Khalfan, Chief Digital Officer and senior vice-president of digital channels at TD Bank Group, said to the The Globe and Mail: “We've been interested in [personal finance management], but adoption is very low. It's one of those things where you're constantly being reminded of how you're missing your goals.”
On Feb 20, 2014 BBVA, a big bank based in Madrid, agreed to buy Simple for $117 million. Simple is in the same space as Moven. The deal helped BBVA enlarge its presence in the United States. Moven is probably expecting a great valuation right now with a potential acquisition to follow?