Banking in a Jifi!

First off, this was one of my first Indiblogger meets in Mumbai. I have been blogging since the last 1.5 years, so thought i might as well venture in to the meet and see what’s it all about. Let me put it this way, if you thought bloggers are a bunch of nerds/geeks with awkward social skills, then you are wrong! This meet was a tri-city event and we were patched up with Bangalore and Delhi through a live feed. What’s more, they had Chetan Bhagat in the house who made the session interactive and joked about the upcoming movie Two States which is based on his book.

The event was basically organised to launch a ┬áKotak Mahindra Bank product called Jifi. Now i have worked in a bank prior to this and i must say they are breaking new ground here. Jifi is targeted towards the millennials and basically for anyone who is social media savvy. The concept is based on social banking. People who sign-up are free of balance woes, as they have no minimum balance requirement. The point i liked is that you earn lucrative interest for money above Rs. 25,000 as the bank automatically creates a term deposit for you. So for someone who doesn’t really care to invest and make their money work, this is a pretty good deal. The social media part is plugged in on Twitter. Basically anyone with this account can run a few activities like balance inquiry, historical statements and others. Some of the bloggers inquired about how safe this could be in case someone withdraws or transfers money from their account. To this Mr. K.V.S Manian (Head of Consumer Banking) replied that the services offered do not include transactions. So for the average user like me, i could tweet to Kotak asking about my balance and i will receive a Direct Message with the details, hence keeping my banking details private. Now, though the service is new in India something similar has been done abroad years back. American Express has a service called AMEX SYNC that lets people buy stuff using Twitter. However, from an Indian perspective this service from Kotak is a first. They also have a Kotak MoneyWatch service thrown in to help people like me track their expenses. Plus the more friends you refer, the more social points you stand to earn. These can be redeemed or transferred to friends later.

Adoption levels for a product like this will depend on how people approach social media in general. Many people are bogged down with privacy concerns, so i reckon it may take a while to catch-on. However for people like me who are pretty much online most of the time and breathe social, this is a pretty cool service to try out. I do hope though that they take care of two-factor authentication on twitter. One of the other issues, they should address is people having different email addresses when they sign up for twitter / facebook / banking.

All in all, this was a good event to be a part of. I met a lot of cool new bloggers and got some solid tips from them. Plus the event was hosted at Cafe Zoe which is one of my favorite places in Lower Parel. Now, let me get back to exploring Jifi !

Chetan_Bhagat_Indiblogger

 

PS: Thanks to Indiblogger and other bloggers for re-tweeting and sharing the photo on Twitter ­čÖé

Advertisements

Why should you ‘Check-In’ on Foursquare?

Chances are, that you’ve heard of Foursquare: the location based social networking platform. Almost every social media junkie you’ve met is right now, at this very moment checking in to his/her favorite spot. I like the fact that on social, you’ve got platforms that are specific to the purpose. While i may not want to share my coordinates with everyone in my Facebook friends list, Foursquare let’s me share it with a select few.

However, there is much more to Foursquare than just being another platform to engage bleary eyed students, tech – enthusiasts or common people. Recently it raised funds through debt financing to further propel its growth plans. While all of this may show that there is value to be garnered, I have some points to ponder:

1. ROI : Yes, its the ‘word’ for anyone in social media. Foursquare in its 4 years of existence has received $110 Million in financing. Out of these venture capitalists have powered up to $70 Million. But, if you look back at the total revenue for last year, Foursquare made just $2 Million!

2. Valuation: It’s paramount to check for decent valuations and projections/forecasts for the firm you wish to invest in. According to estimates, Foursquare was valued at $600 Million. This just baffles me.

3. Growth Life-cycle: Typically any platform such as this goes through the following stages:

  • Introduction: Pitch/Launch at a influential event. The way Twitter did back in ’07, Foursquare was launched in SXSW ’09
  • Steep Growth: Backed by early adopters and influential base, there is an exponential growth that is seen
  • Monetization: Logically, the next step where you begin to reap monetary benefits out of the base you have acquired
  • Quick Exit: If there is any hint/indication of the platform not growing further, the plug is pulled out quick enough for a painless exit.

From these stages, we can see that Foursquare has crossed step 2 in a sluggish way. They are still trying to crack monetization. The main playing field they have is 50 Million data points, through which they can get marketers to put ads and target users based on their location. I guess by using this as an API they should be able to reap some benefits. Currently the total user base is estimated at 30 Million (actual active users are unknown)

4. Funding Options: Now the reason why they had to go for Debt Financing? From my basic finance course back at the B-School, entities typically tend to go for equity/VC funding. The risk of paying back is much less, plus the valuations on sheet look good. Debt is the route taken up when all other modes fade. So, does this indicate at a lower valuation or estimates being revised downwards?

5. Gamification Vs Review App: The gamification part comprises of earning points everytime you check – in. If you’re a mayor, flash around your coin and earn goodies at your favorite restaurant. Else you’re engaged by earning badges. However, Foursquare wants you to leave tips which serve a tiny reviews for the place you’re at. Be it a tourist spot, restaurant, bus stop or the daily commute train station, you can simply leave your tip to guide others around. I don’t think Foursquare should take up this route as there are several other popular apps that serve the purpose. Its important to differentiate their offering here.

So my personal take? I think Foursquare is here to stay if they crack the monetization bit. It’s also crucial that they don’t take that objective to the hilt like Facebook. While its lovingly designed in NY and SF, it will take a lot more to get the love from users all across the world!