Social Money reveals new product, deal with Bancorp
Social Money today announced it's preparing for the launch of a new product, CorePro, with a new partner, The Bancorp, Inc., the holding company behind a financial firm that offers banking services and products.
CorePro is a savings account platform that is expected to be available in the first quarter of 2013. Social Money, a West Des Moines-based company founded in 2007, built and has relied on the technology internally since the creation of its online social savings platform, SmartyPig.
Social Money took the consumer-facing front end of SmartyPig and turned it into an enterprise offering, GoalSaver, and the company is doing the same with SmartyPig's back end, turning it into CorePro.
Bancorp will be the first company to get its hands on CorePro and will also become a re-seller of GoalSaver, a product sought after by its clients.
"We had a lot of Bancorp's 300 clients coming to us directly," Social Money president Scott McCormack (left) said. "When that started happening I called my friends at Bancorp and said, 'Hey, you have all these existing customers coming and asking us for our solution. Why aren't you offering savings?' "
Bancorp hadn't been offering a savings platform because it wasn't cost-effective, McCormack said. CorePro costs one-fifth the price of other savings account platforms on the market, he said.
"We spent a good month to two months figuring out how to help them," McCormack said, "and that's really where this whole partnership idea has come from."
For Bancorp, the partnership provides new product offerings and new streams of revenue. For Social Money, it's a significant step forward in its new business model of serving both consumers (via SmartyPig) and businesses (via GoalSaver and CorePro).
"As we launch CorePro into Bancorp, we see that as a scale-building event," McCormack said, noting that Bancorp's 300-plus clients have "million and millions of end customers."
GoalSaver, which Social Money announced in February, has yet to be launched publicly by an organization, but McCormack said his company has a "boatload of banks" it will be announcing during the next 60 days. Social Money announced in April it would double its office space and staff of 30 over the summer. The company has expanded its offices but has not made the announced staff additions.
Credits: McCormack photo from linkedin.com.