8A - Solving the Savings Problem

The Opportunity:

There are well over 6,000 banking companies in the US, with many being local or regional companies. This number does not include credit unions (there are 5,700+ of those). Most banks don't provide educational information about banking concepts in general. This leaves many people without knowledge of basic investing opportunities, credit lingo, benefits of various savings and checking accounts, and many other potentially important topics. While individuals could spend time researching these topics on their own, they often won't. Banks have an incentive to provide educational material to their customers because customers will be able to better manage and invest their money (with the bank) if they are educated. There could be podcasts, info-graphics, and other materials to show and push consumers to save more of their money for the future. The more a bank is able to then loan out, the more money it can make. Also, the simple knowledge of special CDs (Certificates of Deposit) and savings accounts could cause someone to decide to participate in such an account. For example, I learned about Christmas Savings accounts from Cara that I interviewed last week. I personally have been saving up money that I plan to use in a few years, so I could participate in a Christmas account like that and earn double the interest rate as long as I don't touch the money from January to December! I would have done that with some of my money if I had known about it (not sure if my bank actually does that either). While I did interview customers of banks (individuals), I plan on marketing my idea to Banking firms.

EduBanking:

EduBanking is a fully customizable online resource website for customers of participating banks. Much like UF students are able to access Lynda.com or the Mediasite lectures through their UF accounts, banks will add the EduBanking website as a tab or link within their own website, opening a portal for their customers. Customers will either already be logged in, or will have to use their online banking credentials to log in. I could also create an app for the website.
Resources will include podcasts of various experts discussing all the major topics most people would find useful to know. They will be split into categories such as "Homebuying" "Buying a Car" "Paying off Loans" "Credit and Debit Cards and Accounts" "Investing" and "Saving". There will also be links on one page for other credible sources to find more information on topics not yet covered. A live chat feature could be added for confidential (basic) financial advice, depending on demand. The customizable portion of the website would be extra information that pertains to specific banks only. By taking over some of the communication between the firm and its customers, we will alleviate the bank's need to have a large department dedicated to that effort.