Watch out for Movenbank who is negotiating entry into retail banking into the US and Australia, with an offer that opens up more choice, that will be deliciously simple for customers and could be dangerously effective for retail banks.
Here it is a business model that depends on customer insights at the front end of banking, which will allow Movenbank to stand between a retail bank and its customer. The launch date for Movenbank in the US is July 2012.
Driven by behavioural data from the outset, Movenbank was a crowd sourced business model. Movenbank’s aim is to use the rigor of customer insight to make a radical breakthrough in the world of banking. By creating an electronic marketplace with unparalleled customer transparency, Movenbank aim to better match, people, banks, and money with opportunity.
Movenbank will not bother itself with plastic cards, but will use contactless recognition through mobile phones, where cash registers will read mobile phone technology (yes like Commbank’s Kaching). In a bold move, Movenbank will gather social media data to set loan and interest rates. Customers who introduce other customers to Movenbank will enjoy 5% interest on savings rather than 1%. That is an acknowledgement of the cost of customer acquisition for a bank, which is $200 to $350.
Using behavioural psychologists to crunch social data in an algorithm know as CREDTM, Movebank will reward customers for creating a more valuable relationship with them. Movenbank will even tell customers what behavior they need to make the CRED score go up and down. Friends can move money between each other through a Movenbank account, which a friend on the receiving end can get through a Facebook application.
Customers will be matched to their financial profile using a model based on Myers-Brigg for a more personalised and feel good experience of Movenbank. Movenbank aims to go so far as to monitor customer spending against nominated categories, rewarding customers who manage their money against a designated spending plan.
All of this and Movenbank doesn’t actually have a banking license it just take a clip on the ticket by taking customers to the bank.
With the underwhelming performance of Groupon, who had a customer aquisition based business model, standing between a customer and retailers, we know it can be a tough gig. For Movenbank, the real test will be how much customers value the opportunities it can bring and the way it aggregates their financial world into a single view, and only time will tell.
Movenbank is led by Brett King, author of Bank 2.0, check out his view of the future at his blog or his Bloomberg interview
Hearts and Minds
Founder of Thought Leaders Circle