Magazine article American Banker

Wesabe to Offer Financial Tools for Bank Sites

Magazine article American Banker

Wesabe to Offer Financial Tools for Bank Sites

Article excerpt

Byline: Daniel Wolfe

Wesabe Inc., which operates a Web site where consumers can manage their finances for free, is now selling its technology to banks and credit unions, so they can offer it to their customers on their own sites.

The San Francisco company is one of several that initially offered financial management applications directly to consumers online and now are also selling the software to banks.

Marc Hedlund, Wesabe's co-founder and chief executive, said in an interview Tuesday that since it went live in 2005 it has received some inquiries from banks wanting to offer its applications, though few requests seemed serious.

That changed in recent months, he said, when the economy soured and banks began looking for technology to help retain depositors.

"In September, when the market started to really turn down, for a short while we didn't hear from anybody - and then we were hearing from everybody," Hedlund said.

Wesabe has not had a positive cash flow since its founding, though he expects to have one by early next year. The vendor has long resisted sharing its plans for making money, and Hedlund said that when it became obvious that the sudden interest in its technology was no fluke, he shelved the still-undisclosed business plan in favor of a new one: License its technology to any financial institution that wants it.

The company has three contracts in negotiation today for a white-label product called Springboard, which it has been offering to banks and credit unions since January and expects to formally introduce today.

(Hedlund would not identify the three companies negotiating with Wesabe or explain his company's other options for revenue, because he may still pursue them.)

Wesabe is one of several providers of software that lets users upload data from multiple financial accounts. …

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