Copy of Moneta

WorkImages-01.png

About

In 2015, myself and two other designers won a Red Dot Award for our financial service design concept.

Below is our research, process, and deliverables dating back to 2011-2015. While some of the dates on the research may seem dated, I assure you the problem continues to plague the United States.

 

The Problem

In the United States of America, 8.2 percent of US households are unbanked (17 million adults) and 20.1 percent of US households are underbanked (51 million adults). A large majority of the unbanked and underbanked demographic rely on predatory alternative financial services (e.g. payday/title loans and check cashing services) to secure emergency loans, which can have interest rate of excess of 300%. Current alternative financial services are unregulated and predatory, keeping users in financial uncertainty. Aside from the challenges that come with being financially unstable, this demographic of users has a categorical lack of trust in financial institutions. The lack of transparent practices at existing financial institutions furthers the lack of trust. Financial instability leads many of the unbanked and underbanked users to see no value in using such services to manage their limited funds. Moneta seeks to remove the entry barriers associated with traditional financial institutions while educating its users through multiple stages of financial stability.

Quick Facts

In the United States 17 million adults are unbanked &
51 million adults are underbanked.

Alternative financial services can carry interest rates in excess of 300%

In the United States; 29.3% of households do not have a savings account.

Larger proportions of unbanked households are located in urban areas than other banking status groups. The largest share of unbanked households (41.2 percent) are concentrated in urban areas, while only 30.9 percent of underbanked and a quarter (25.…

Why are people unbanked or underbanked?

  • Lack of understanding about the banking system and expectations for having a bank account

  • Past negative banking experiences

  • Lack of appropriate identification and/or documentation needed to open a bank account

  • Unstable living situation

  • Cultural conflict including bank practices that vary with personal beliefs

  • Perceived lack of transparency in banking practices

 

The Users

We found that a majority of our users don’t trust traditional financial institutions and this is primarily due to a the lack of transparency in their practices. Along with a lack of trust, they don’t see the value of using banking and credit systems as they often find themselves financially unstable. Furthering the stigma, a large percentage of this market is considered high risk by conventional banking institutions because of their poor credit and banking history. This also explains the incredibly high interest rates offered to them through alternative financial services. Being able to reach our users through the appropriate channels while offering transparent practices increases accessibility, convenience, and trust.


The Solution

As an NPO 501(c) Moneta is structured to empower users and focus on their benefit rather than strictly profiting shareholders. Community and transparency drive social innovation for Moneta while increasing value, trust, facilitating sustainability, and growth. Through transparent practices and an educational platform Moneta seeks to educate its users while encouraging confidence in the service offerings. Investors and partners play a pivotal role in triggering virtuous economic cycles in the communities that adapt Moneta.

 

Positioning

Moneta positions itself in an area often overlooked by traditional financial services. By leveraging technology and transparent practices, Moneta is able to lower the entry barriers for the unbanked and underbanked. Through transparent practices, accessible channels, and a gamified educational platform Moneta is able to offer a socially innovative platform for the unbanked and underbanked. By removing the need predatorial alternative financial services, Moneta is capable of gaining user trust through its transparent practices and educational platform.

 

Service Package, Business Model Canvas, and Service Blueprints

These tools were used to express and explore the breadth of Moneta's service offerings.

Service Touchpoints

 

Monetas principal objective is the disruption of predatory lending practices through convenient platform channels, education, and complete transparency.

Moneta offers services with low entry barriers and continued support through every stage of the user’s personal financial growth

 

 

 

Three Stage User Growth Platform

Through Moneta's three stage user growth system, the users are able to define the financial stage that best fits their needs. User growth through the three stages is enhanced through the use of gamification. The users begin by entering the stage that is appropriate based on their banking needs, experience, and desired services. As a user grows financially they continue through the stages and have access to expanded service offerings. Developing user trust and loyalty is of utmost importance to Moneta. Through this gamified and transparent process, Moneta users are educated on financial services in an encouraging and engaging manner. Completing the three stage growth platform leads a user to achieving financial stability and empowerment.

 

3stageGrowthChart-01.jpg

Investment Model

Micro loans are fund crowd-sourced by Moneta and lent to users for emergency loans, small business, or educational needs. Stage three users will be encouraged to explore low risk investment opportunities. Moneta charges the loan recipient 3% on the principal amount and provides the investors with a guaranteed return of 1.5%. Moneta keeps the remaining 1.5% to cover expenses incurred during the service.

 

“When managing either a checking or savings account, the underbanked mostly use mobile devices since 70% have mobile phones.”

Board of Governors of the Federal Reserve System

The app allows its users to monitor funds, access budgeting tools, change account and profile settings, access educational tools, and schedule appointments at the community center. They can also monetize funds remotely along with emergency assistance in the event of a missing Moneta Card.

The Moneta experience is delivered through a series of physical and digital touch points such as the Moneta App. Leveraging the users' access to smartphones, Moneta is able to increase accessibility and lower the entry barriers.

 


Project completed in 7 weeks

Team members: Evan Knowles & Ana Soto