Jun 10, 2020

What is Samsung Money by SoFi?

Matt High
2 min
Array
Samsung, SoFi and Mastercard have launched a mobile-first money management account and branded debit card...

On 27 May Samsung announced the launch of Samsung Money by SoFi .

According to Samsung, the new product is a mobile-first money management experience that combines a cash management account and a Mastercard-branded debit card.

The account will become part of Samsung Pay and, says the company, is a simple and secure way to manage everyday finances.

Samsung Money has been developed in partnership with fintech company, SoFi and is built with the goal of making users’ everyday lives better through the use of powerful tools on their Galaxy devices.

The account is secure, with no account fees - it also rewards users for saving. For example, they can earn higher interest relative to the national average of transnational accounts.

Money management made simple

As leaders in their respective fields, both Samsung and SoFi are committed to the use of technology to let people take more control of their financial lives.

Sang Ahn, Vice President and GM of Samsung Pay, North America Service Business, Samsung Electronics, said: “Samsung’s goal is to make everyday life better by putting powerful tools in the hands of Galaxy users.

“Samsung Money by SoFi is our biggest move yet to help users do more with their money [...] users can access mobile-first financial services and earn exclusive Samsung benefits. We’re excited to help our users reach their financial dreams by allowing them to spend, save and grow their money and access it easily and securely.”

The product will launch later this year, combining the convenience of mobile payments and the control of a debit card.

Users will have the ability to choose between opening an individual or joint cash management account - they can also benefit from in-network ATM fee reimbursement at over 55,000 locations in the US.

Upon activating the account the virtual Mastercard-branded card will be able to use from Samsung Pay - a physical card is also provided.

Smart money management is also available. For example, users will be able to check their balance, review past statements or search transactions.

Similarly, they can flag suspicious activity or change any account details, all from their mobile device.

Rewards and benefits

Samsung Money by SoFi offers a host of benefits and rewards.

For example, users can enroll in the Samsung Rewards programme to earn points for every purchase made through Samsung Pay.

Security is built into the product, too. Accounts are FDIC insured up to $1.5mn and account holders are given defense-grade security from Samsung Knox.

In addition, the physical debit card has no card number or details on it. Instead, this information is hosted within the Money tab of the accompanying mobile app.
 

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Jun 10, 2021

FIVE things fintechs must do to keep investors onboard

Fintech
Investment
venturecapital
AI
Brandon Rembe, CPO, Envestnet...
4 min
Fintech innovations drew in first-time investors who reshaped the markets. What new advancements will help them continue their rise?

New investors flocked to the stock market during the COVID-19 pandemic. Thirty-eight percent of investors said they had never had a brokerage or similar account before opening one in 2020.

Low or no-fee trading options have helped accelerate the trend – nearly half of new investors said they accessed their account primarily through a mobile app. As FinTechs, how do we create the trust needed to keep new investors in the market and create a fruitful customer experience for them?

The financial industry does a disservice to individual investors if we merely offer tools that focus on making money quickly, an approach that usually backfires. Instead, the surge of interest presents an enormous opportunity for those who want to help more consumers use financial technology to educate them on responsible spending, saving, and investing in order to achieve financial wellness current fintech tools have welcomed individual investors in the door.

Now, it’s time to focus on education and improving their experience going forward. There are several ways those of us in fintech can step up to shape the future of retail investing so that it works better for everyone, starting with the following areas.

Equal access to financial wellness education

Financial health should be available to everyone — but today, not everyone has the educational resources to achieve it. One study shows that only 3.9% of students from low-income schools were required to take a personal finance class. What they aren’t learning in school or from family members, fintech companies can provide on their platforms.

The companies should move from solely offering financial services to a more responsible model of education, advice, and prescriptive choices to help consumers develop better habits and make wiser financial decisions. Not only can they empower consumers and bridge historical wealth divides, but they can also stimulate growth by opening up new consumer segments.

More personalisation

Just as we’ve come to expect that our fitness routines are tailored to our individual bodies, we’re also ready for finance tools that go beyond one-size-fits-all solutions. But only six percent of financial institutions say they’re using the kind of technology that allows them to deliver a deeply personalized experience. Fintech tools need to reflect that financial success looks different for each of us.

For one consumer, it may mean providing guidance on how to pay off student loans early; for another, it may mean prescriptive actions that enable them to stick to a budget for the first time; for a third, it could look like prioritizing environmental, social and governance (ESG) investments, so that her portfolio aligns with her political beliefs.

Now, we are seeing financial technology beginning to meet the demands of personalized finance in a substantial and meaningful way.

The rise of AI-Powered Advice

Big-picture advice and predictive guidance used to be a feature of high-end financial advisory firms — a perk only available to those who could afford it. But thanks to rapid advancements in data analytics and artificial intelligence (AI), that kind of holistic advice is now more accessible than ever. AI-driven robo-advisors can parse many different streams of financial information, delivering customized answers to key questions: Is it time to buy a home, or is it smarter to keep renting? Can I afford to take out another student loan?

Intelligent connectivity powered by AI can anticipate consumers’ needs and next steps, making proactive suggestions that guide them along the path to financial wellbeing. Fintech companies can also help consumers identify when their financial picture becomes too complex for a robo-advisor, and help them find a human financial advisor to meet their needs. 

Focus on financial mental health

New investors are quickly finding that the market can be overwhelming. That’s not surprising, financial anxiety is common and studies show that financial stress can have an impact on mental health for some.

It’s not enough for fintech companies to give retail investors access; they also must provide the guidance and support that help consumers manage their financial well-being. Educational tools can ensure that consumers are well informed about their options.

Predictive analytics can anticipate consumers’ questions, serving them key information and insights before they ask. Features that emphasize a comprehensive notion of financial well-being, rather than short-term wins and losses, can also help ensure that consumers are keeping their eyes on the bigger picture.

Gamification for good

The surge of gamification apps has done an impressive job making investing as engaging as playing a video game or joining a social media platform.

Much of the current use of gamification emphasizes short-term thinking, but there’s also an opportunity to help consumers think more broadly about their overall financial picture. One example is peer benchmarking, a feature that enables help consumers to see how their financial habits compare to those of friends and fellow consumers.

Gamification can also be used to incentivize making smaller, smarter choices — for example, rewarding saving over making an impulse buy.

The future of fintech is about more than just broadening access to the markets. It’s about making sure more individuals have access to the tools that can help improve their financial well-being—in the ways that suit their own circumstances and needs. The potential to act within their own set of individual priorities, with their long-term financial wellness in mind is much more empowering to a consumer than simply relying on short-term, high-risk investments.

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