Automated “piggy Banks” : don’t make money finance site Digit

cloud network hunting note: today’s society, the people in the “grandpa” MAO build saving (of course, the local tyrants always is one of the few, even a small local tyrants). But understand finance children’s shoes are few and far between. So, how to make money, this is a problem worthy of thinking deeply. Have the money? Headstrong! Digit success to raise $2.5 million in seed money, since then open seamless saving mode.

 

in recent years, we have witnessed countless personal finance software have sprung up arises at the historic moment, most of the application being used to help the user to create a budget, make a better understanding of their own financial situation, and the property that you have to make the appropriate solution.

these software for those who connect each tiny spending and interested in people, is very useful. Of course, those people are only part of a few. But for those of us who often evade or ignore because excessive spending on something and then bring the cognitive load and melancholy, is completely useless.

this is why, in the past few months, I am obsessed with a start-up company called Digit, and became the “fan”. We can realize that the Digit wants to help the user to save money, with no problem to change the mindset of the user to save cash.

in order to accomplish this goal, the company has successfully raised $2.5 million in seed money, and committed to the integration of partnership with a bank, this will make its savings to more seamless.

Digit work

the concept behind the Digit is actually very simple: first, you need to create an account, and then give the Digit can permission to access your online banking account, the company will be from your checking account not plan breath, moved by the FDIC (federal deposit insurance corporation) savings account.

Digit before the don’t need to ask you want to transfer the amount, so its services seamlessly. Digit will “requests in advance”, in other words, instead, rely on is a kind of algorithm, according to many factors, such as it learns through your payment history and spending habits, can decide to move from one of your account to another account the amount of the number.

first of all, the Digit to examine the user on the account the amount of savings, to determine the amount transfer security. In addition, it will also consider the user’s normal wages or payment plan, and length of time from their next payday. Then, it will be by focusing on the user’s daily consumption habits, the user didn’t really pay attention to or feel any financial loss, to determine can transfer money.

in and of itself, Digit and most financial application mode of operation is different, because it’s not too much burden on the user information, also won’t by changing the user behavior in order to achieve the goal that is beneficial to their financial interests.

another weird about the Digit place is that it lacks a detailed data can provide users of mobile application or web site. These data include the user’s consumption habits, capital flows, or the user’s budget for the future.

in fact, Digit website is only a rough outline, it will only show the user the Digit account few details: at present the amount of the account number, after a period of time to save the amount of the number, the average number of transfer amount, and the frequency of withdrawals. If the user is concerned about the information, the website also have about every time transfer detailed list, so each user can scroll.

instead of using the website information and user communication, Digit is mainly in SMS mode. It can be the user’s daily updates every day through different text in the form of information sent to the customer. Most of the time, it provides users with their checking account balances, but occasionally update them within a week or a month save the amount of the number.

you can use a series of simple SMS command to the Digit is required to provide more information. Input “Recent”, for example, Digit will feedback to the user checking account record in the Recent three deal matters; Input “Withdraw”, you can take out the money from your account in full to check at any time.

not to make money “products”

about Digit, I need to point out some matters needing attention, this is the Digit of the potential users need to understand. One of the most important is, the user should understand transfer to their own Digit “savings account” is completely don’t have any interest, it is completely different with ordinary account.

this will no doubt cause some skeptics complained that, if every user put money into all their savings accounts do promotion for the local tyrants. Or more advantageous, compared these users should have the money but to stocks, bonds or any interest than savings accounts (& lt; 1%) high financing channels.

but it is some people will ignore this point: Digit exists, it is because most people in the world is not good at financial management, and even there is no contact with finance.

it store money in the account, so they don’t need or only need a little bit of foresight. It hopes to get the maximum number of returns and minimum number of pain.

to be honest, I have to agree with this view. Since August, I’ve always been a Digit part of the pilot program, and in the meantime, Digit in the name of my saved about 1000 dollars. According to the chief executive of Ethan Bloch said that since the launch of the pilot, Digit in a summer for registered users to save more than $60.

Digit founder Ethan Bloch

about money

Bloch is social media marketing Flowtown of former chief executive of a startup. Flowtown aims to help businesses through the email form will be carried out with potential customers into real customers. The company in 2011 by the Demandforce shortly after purchase, Demandforce then acquired by Intuit. Intuit is a high-tech company, which is mainly composed of financial software, Quicken its main products are similar products on the market the most popular accounting software. For Intuit product team of consideration, Bloch decided to stage a comeback, soon he began to work in the Digit.

in order to prompt service start, he raised by Baseline Ventures (vc) Baseline led the $2.5 million in seed money, even more stunning, also led to Flowtown Baseline vc investment work. In addition, Freestyle Capital, Upside Partnership (a seed stage investment company), Google Ventures (Google vc), Operative Capital, Garry Tan (blog, co-founder of the site, is also the Y Combinator partners), Alexis Ohanian (Reddit co-founder), Aaron Harris, Rick Berry, Nate Bosshard, Eric Ries, Joshua Greenough, Randy Reddig, Eoghan McCabe and Ted Rheingold (InVenture’s chief operating officer) and full participation in.

as the company with the main bank partner combination, the money will be used for the development of the team. In this way, can reduce the cost of ACH transfer to a more favorable interest rate. Automatic switching of ACH (Automatic Clearing House) center is the main system of dealing with the bank for payment.

in addition to money, Digit also hire and exposes its list of advisers. These heavyweights are Braintree, a focus on the Internet and mobile platform of online payment gateway provider’s chief technology officer Dan Manges, Square (the field of mobile payments startup) team members early Randy Reddig, growing company (American travel rental communities) global payments general counsel Sharda Caro – del Castillo, and Paul Hastings (Paul Hastings law firm partner Tom Brown. With their help, Digit hopes to make more seamless user experience on “tall” savings.

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