Magazine article American Banker

SpringCoin Bridges Gap between PFM and Debt Coaches

Magazine article American Banker

SpringCoin Bridges Gap between PFM and Debt Coaches

Article excerpt

Byline: John Adams

As consumers look to shore up their financial wellness following years of recession-based distress, more startups are hitting the market with different flavors of personal financial management tools.

One of the latest entrants, SpringCoin, offers automated personalized coaching to help consumers reduce debt. The firm, which sells consumer direct services as well as white label partnerships, is targeting what it sees as an opening between PFM firms that offer access to transactional data and user-driven budgeting tools, and traditional debt counseling firms that SpringCoin claims don't adequately leverage new data as part of their services.

"Credit counselors aren't taking advantage of the new technology that is available," says John Sun, CEO of SpringCoin. "You have to make real-time recommendations today, rather than sitting down with someone every few months to talk through your position. "We can offer feedback on a regular basis."

The SpringCoin platform was built by a debt management tech firm called DebtEye, which is rebranding as SpringCoin with the product's release.

SpringCoin works a bit like a personal financial management tool, combined with customized tips and action items to improve personal financial performance. Through an internally built platform and account aggregation from Yodlee, the site displays account information and transaction histories and makes debt-reduction suggestions that become more detailed and personalized over time as the consumer uses the service and accumulates new transaction data. "We use and automate a lot of best practices from credit counseling, such as how to budget, with advice on spending categories," says Sun.

SpringCoin charges $8 per month and offers real-time feedback linked to a consumer's progress toward financial goals. …

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