LAKE BUENA VISTA, Fla.–Casap, a disputes and fraud automation platform, was voted the winner of NACUSO’s Next Big Idea Competition here.
As the winner, the company took home $7,500. The second place winner was Debbie, which offers rewards and incentives for paying off debt and improving one’s financial health, with a bonus for paying off card debt with credit unions. It won $2,500.
The Next Big Idea Competition, now in its 12th year, is a pitch competition in which firms introduce and explain their offerings, a panel of judges asks questions, and at the end of the process the audience votes for its favorite company.
Overall, NACUSO reported it had 49 applications to be part of The Next Big Idea, before narrowing that number to six.
Here is a look at what each of the companies said during their pitches in the order they appeared:
Chimney
Chimney says it’s mission is to “reimagine the banking experience for homeowners.”
To that end, it offers the My Home Tracker App, which shows home value, borrowing power and personalized insights. A suite of alerts and other information is available.
CEO Mathew Covi shared the story of his own home buying experience, including looking at his home banking app, which delivered a lot of negative information, such as how much he owed. The Zillow app, meanwhile, stressed more positive information.
Covi noted that when he applied for a home equity line of credit, the process took eight weeks.
During his presentation Covi, who said Chimney has 65 CU clients, noted a home is typically the biggest asset a member has, and yet, “The home as a financial asset is completely broken.”
Two data points he said credit unions should keep in mind:
- Two thirds of members are homeowners and homes represent 65% of their net worth.
- Total homeowner wealth at $30 trillion.
Risk? Or Opportunity?
“So, it’s either your biggest risk or opportunity,” said Covi. “That’s why Chimney has reimagined the banking experience for homeowners. It was opaque and we’re making it super-transparent And we are turning these members into members for life.”
Covi said the solution works for any homeowner, including the 95% of homeowners who don’t have their mortgage with their credit union. My Home Tracker gives the credit union the opportunity to engage with the member about their mortgage, including the ability to refinance or apply for a HELOC. The credit union controls the parameters around who is contacted and when, as well as messaging, he said.
AlgoPear
Some $84 trillion in wealth is in the process of transferring to new generations, according to the principals behind a company that is looking to help credit unions capture a piece of that.
AlgoPear describes itself as “embedded wealth management as a service,” with CEO Ronnie Green saying, “Our mission is to democratize wealth and AI investing tools for everyday investors worldwide.”
Green shared his own history of investing while a young man and the losses he experienced before turning to an investment algorithm. Ninety-five percent of investors lose funds, he said.
With 67% of young investors saying they prefer digital apps, Green said the platform was built to align with credit unions while providing wealth management services. The organizations it has worked with to date have seen assets under management grow by 20% YoY. He said the app also drives revenue and retention and meets compliance rules.
“With, this credit unions are no longer an alternative, credit unions are the solution,” he said.
Payfinia
Payfinia said its purpose is to “revolutionize financial wellness in communities through real-time payments,” primarily FedNow, with a solution tailored for credit unions. The company said Americans have forfeited more than $603 billion in interest by banking with large institutions.
Noting FedNow debuted on July 20th, 2023, “changing payments forever,” a company spokesperson noted that for credit unions payments are “expensive, slow and prone to fraud.”
Payfinia is a CUSO that enables CUs to participate in the “payments revolution” taking place in real-time payments, which 80% of American say they want, the spokesperson said.
The CUSO is the result of multi-year collaboration between Tyfone, Star One FCU and the Federal Reserve. Star One has seen a 60% reduction in costs through the solution. In addition, it has reduced fraud risk by 51% over other payment solutions, and since go-live has transitioned 22% of its payments into FedNow transactions.
Payfinia is the third largest provider of transactions on FedNow.
“Join us in this mandate for performing your members’ lives,” said the spokesperson.
Casap
Casap describes itself as a member-first disputes and fraud automation platform that helps credit unions navigate disputes at a “fraction of current cost.”
During its pitch a company spokesperson said disputes hurt members. Calls average 15 minutes and resolution can take eight weeks. Twenty percent of consumers stop using their card after a negative dispute outcome, the spokesperson added.
“How do you combine protecting your good faith members while protecting yourself from fraud?” the spokesperson asked, before answering, “Casap.”
In addition, the spokesperson said Casap allows the member to easily dispute a charge, and prior to that, to have access to richer data around a transaction they may question or not recall
Casap said it increases recovery rates with insights that enable teams to act on patterns of fraud and identify evidence to win more chargebacks.
“Casap’s self-service flow transforms a negative experience into a loyalty-building opportunity while enabling full end-to-end automation of a dispute,” the company said. “Compliance doesn’t have to be costly and Casap safeguards revenues with a triple shield—back office efficiencies, fraud protection, and customer delight.”
The company said its solution decreases chargebacks and reduces costs in large part by using AI, meaning no one at the credit union has to physically review it.
Reimagination Technologies
Reimagination Technologies said it allows credit unions to provide low-cost and high-member value remittance services using their own credit union’s brand.
A spokesperson shared story of sending money abroad to relatives, which he described as a “real nightmare every single time.”
The Reimagination Technologies solution operates through WhatsApp, which the company said is the number-one texting platform in the world.
“This is the way immigrant families in the United States stay connected to loved ones at home,” a spokesperson said, noting there are 20-million immigrants in the United States sending funds to another country at least once a month. “It’s a $90-billion opportunity.”
The company said sending money home can now be as easy “as sending a text. And you can offer this ability to your members.” The transfer can even be done through voice commands, the company added.
According to Reimagination Technologies, the transfer service helps better connect the member to the credit union, and can also be a means of driving new membership.
Debbie
Debbie offers rewards for paying off debt, with a bonus for paying off card debt with credit unions.
A spokesperson said the company is based on what it sees as a card incentive structure that is “all wrong,” as it incents people to spend and keep spending and accumulating debt on cards.
“Debbie is designed to flip the switch and reverse the way credit cards work to reward positive behavior, such as making payments on outstanding balance or adding to savings balance,” the spokesperson said.
Through partnerships with credit unions, the company said it helps members improve their financial health by rewarding them for paying off debt, increasing savings, and adopting better spending habits.
“This innovative approach not only attracts young consumers to credit unions but also addresses the critical issue of financial health among this demographic,” the company said.
Debbie said it has chosen to work with credit unions due to “mission alignment.”
If a Debbie user makes a card payment with Chase, for instance, they get 100 points. But if they make it with their credit union, they get 200 points.
“Credit unions can save the day by doing what they do best,” the spokesperson said, adding, “this is technology with a purpose.”