Executive Team

jim-collas.png
 

Jim Collas

President and CEO

Mr. Collas has over twenty-five years of senior executive experience in the computer industry, the prepaid card sector and consumer markets. Prior to OnBudget, he was the co-founder and CEO of BillMyParents, Inc., an award winning prepaid card issuer targeted at the parent/teen market. Mr. Collas has built and managed organizations of over 2,000 employees, led the development of hundreds of consumer products and services accounting for over $28B in worldwide revenues and secured over $50M in early stage financing across several ventures. Between 1992 and 1999, Mr. Collas was a senior executive at Gateway Computers, playing a key role in growing the company from $600 million to over $8 billion in revenues. He was also part of the executive team that took Gateway public. During his last three years at Gateway, Mr. Collas was CTO and Senior Vice President in charge of worldwide product strategy, product development and product management.

 

Jeffrey Hall

COO

Mr. Hall’s experience encompasses over 20 years in business operations, business planning, organizational development, systems design and implementation, account and program management and process improvement. He has extensive knowledge of eCommerce, retail, prepaid cards and telecommunications. Mr. Hall led comprehensive operational teams for Sprint Telecommunications, Mid American Energy, Red Envelope and ProFlowers. At ProFlowers he streamlined sales operations through system automation and established the account management program for key accounts and co-branded partners. He was instrumental in securing large customers including Kroger, Albertsons, MasterCard, American Express and Martha Stewart Flowers. Mr. Hall led all operations at BillMyParents including technology, service operations and program management.

 

Jonathan Shultz

Chief Financial Officer

Mr. Shultz has over twenty-five years of experience in public accounting and as CFO of several public and private firms. Prior to OnBudget he was Chief Financial Officer, Secretary and Treasurer of BillMyParents, Inc. Mr. Shultz has also been a financial consultant, CFO, and CIO for several California companies including Neology, Inc., California Clinical Trials, Aurora Electronics, Inc. and Asset Recovery Concepts. He began his professional career in public accounting where he worked for seven years in the Audit and Attest Practice (most recently as a Manager) with Ernst & Young, specializing in computer technologies. Mr. Shultz has extensive international experience having worked in Mexico and Brazil with three firms and speaks four languages. He possesses Bachelors in Accounting and Masters in Finance degrees from San Diego State University and is a Certified Public Accountant, Certified Management Accountant, and a Certified Financial Manager.

 

Jeff Margileth

Chief Technology Officer

Mr. Margileth has over 15 years of software architecture and web application design experience.  He has extensive financial experience and is the chief architect of the BillMyParents platform.  He has architected solutions for or had architectural advisory roles for clients including Sony, AT&T, Socialwise, Beverages & More, and Kuehne & Nagel. Mr. Margileth is a proven project manager and technology architect with a history of successful Data Integration projects and a deep understanding of business processes.

 

Mike Corrales

Vice President of Marketing

Mr. Corrales has over 15 years’ experience launching successful web applications and designing high-growth, profitable Internet marketing strategies around them. He has headed marketing strategy for payments industry companies including BillMyParents and Intuit. He also led the Marketing and partnership development for technology start-ups including: Greenest Host (cloud IT services), Nirvanix (enterprise cloud storage) and Proflowers (ecommerce.) He is a graduate of the University of San Diego and the Strategic Marketing Management Program at Columbia University. Most recently, he also completed the MIT Sloan School of Management's Executive Program in Strategy and Innovation.

gene-kirby.png
 

Gene Kirby

Business Development

Mr. Kirby has over 29 years of experience in the industry having served in multiple roles across retail banking, commercial banking, marketing and executive management.  Prior to forming his consulting firm Mr. Kirby was President of NewAlliance Bank in New Haven, CT where he was responsible for all  lines of business within the company.   Prior to joining NewAlliance, he was with SunTrust Bank in Atlanta, GA where he was Corporate Executive Vice President responsible for the retail line of business, the commercial line of business, consumer product management, call center operations and corporate marketing. Mr. Kirby is a former Chairman of the Consumer Bankers Association, active across the financial services industry and involved with multiple charitable and community organizations. He is a graduate of Virginia Tech and received his MBA from Duke University.

Market Opportunity

pymnts-article.jpg

The Engage FT platform enables banks to offer payment cards with enhanced spending and security controls, which we refer to as “enhanced control” payment cards. There are three primary trends driving the “enhanced control” payment card market. The first of these trends is driven by consumer demand for payment cards to use as simple budgeting tools. A strong indicator of this trend is the prepaid debit card market, which is projected to grow to 89 million active cards by 2016. The initial focus of prepaid debit cards was as a bank account alternative for consumers that did not qualify for a bank account. As prepaid debit cards became more popular, more and more consumers with bank accounts started using prepaid cards, to the point where banked consumers now represent 59% of the prepaid debit card market. Of the 89 million prepaid debit cards projected in 2016, 37 million will be used by banked consumers for budget related transactions. These banked consumers are using prepaid cards as digital envelopes to implement an “envelope budget system” that helps them control spending and manage a budget. 

prepaid-debit-cards.jpg

At Engage FT, we identified this prepaid debit card budgeting trend (which we refer to as “spend control”) early on and developed a set of spend control features and an associated mobile App that addresses this trend by creating a virtual “envelope budget system” for prepaid cards.  We also developed products to bring the “envelope budgeting” metaphor to debit and credit cards. This expanded the potential spend control payment card market from prepaid debit cards only to 396 million active payment cards (debit, credit and prepaid) in 2017.

A second major trend driving the “enhanced control” payment card market is driven by consumer demand for enhanced security controls on their payment cards. In the last six months there have been multiple high-profile payment card data breaches at Target, Home Depot, Kmart, and JPMorgan Chase Bank that have affected over 76M households in the United States. These data breaches have shaken consumer confidence and heightened concerns about payment card security. As a result, many consumers are looking for payment cards that offer enhanced security. A recent survey by Mercator Advisory Group (Customer Monitor Survey, Payments, 2014) indicates that 41% of consumers are seriously interested in card account controls on payment cards. At Engage FT, we also identified this trend early on and have built enhanced security features into our Engage FT platform. These features enable banks to offer enhanced security on Engage FT enabled debit, credit, and prepaid cards.

The third major dynamic driving the market trend for enhanced control payment cards is the banking industry’s desire to drive incremental payment card revenues. Banks are responsible for issuing payment cards that use payment networks like Visa and MasterCard. A bank makes money every time a consumer uses a payment card issued by that bank. This revenue is generated through bank interchange fees (card swipe fees), which are collected from the merchant and average over 1% or the transaction amount. Payment card revenues are a significant source of revenues for banks so any features that maximize use of a banks payment cards are extremely valuable.

Engage FT enhanced payment cards maximize card use and bank revenues in two ways. The first is by making the enhanced card the payment card of choice for the consumer. The second is by motivating consumers to eliminate cash transactions by using the payment card instead of cash. The Engage FT spend control features and associated mobile App compel consumers to use their payment card on all transactions so that they can accurate track spending by category. Using the Engage FT platform the overall effect on revenue can be significant for a bank. As an example, a bank can more than double monthly household revenues from card interchange fees by adding spend control features to a bank’s debit card.

Market Facts

Engage works at the convergence of payment cards, personal financial management tools and mobile.  Therefore, it’s worthwhile to look at all three markets to understand how that intersection is not only growing, but set to grow significantly faster in the coming years.

The total addressable size of the consumer market for payment cards, including: credit, debit and prepaid accounts in the U.S. today is over 775 million active accounts (issued, active and not expired.) The number of consumer general-purpose credit cards with purchase activity in 2012 was 172.1 million and debit cards with purchase activity was 173.9 million, with 66 percent of those cards being used at least once a month. The adoption and use of prepaid cards are exploding.  With 159 million prepaid cards in circulation[1], the U.S. reloadable prepaid debit card market is set to hit $167 billion in loads this year a 44% year-over-year jump. [2]

Meanwhile, in 2013, 55% of U.S. adults owned a smartphone, which is up 32% from the previous year.[3]  Smartphone adoption is showing no signs of slowing down as they become even more accessible at all price points.  About 38% of banking consumers report they have used a mobile device to conduct personal banking business with their primary financial institution in the past two weeks. An additional 8% say that although they haven’t used mobile banking in this timeframe, they do use the service. This total usage reflects a 21% increase over 1st quarter, showing adoption continues to grow and is nearing half of all banking consumers.[4]  Additionally, a 2012 report published by Aite, states that consumers using a mobile device to access their bank account will increase from 33MM to 96MM by 2016. Forrester Research sees that number reaching 108 million by 2017.[5]

The market for Personal Financial Management (PFM) software is also growing and shows even brighter signs of growth when new, innovative approaches are taken to address the market needs.  Javelin research estimates that today 21% of U.S. consumers (or 49.3 million adult users) mix and match PFM software from online banking, desktop software and outside websites like Mint.com, while only 8% of consumers (or 18.9 million U.S. adults) use bank or credit union PFM to date.  56% of consumers said they are most likely to use PFM tools from their primary bank or credit union.[6]

When it comes to mobile PFM, 46% of people who express dissatisfaction with their financial institutions mobile app say that it does not always work like it should. Another 29% say the app is poorly designed and 26% say the app is slow.[7] Banks need to take heed and resolve performance issues to reduce customer frustration and prevent them from seeking alternatives—including moving accounts to competitors.

One of the greatest motivating factors for banks to search for better mobile solutions is that an advanced mobile offering can play a significant role in driving customer acquisition and retention, inasmuch as mobile is quickly growing beyond simply another “channel.” In fact, 39 percent of consumers say that having a mobile offering is either “extremely important” or “important” in their decision to switch primary FIs. Additionally, when comparing the set of features for choosing a new FI between consumers who currently use mobile banking and those who do not, mobile played a decisive role in mobile banking users’ bank selection decision.[8]

While the majority of smartphone and tablet users (52 percent) say they have downloaded their bank’s mobile application, some 8% no longer use it.”[9]

 

{C}[1]{C} 2013 Federal Reserve Payments Study Detailed Report - released July, 2014

{C}[2]{C} Mercator Advisory Group, GPR Prepaid Card Market Forecast, November 2011.

{C}[3]{C} Mercator Advisory Group, CustomerMonitor Survey Series, Payments, 2014.

{C}[4]{C} The Financial Brand, April 10, 2014, http://thefinancialbrand.com/38433/the-promise-of-mobile-banking

{C}[5]{C} What’s the Magic Bullet for Mass Adoption of Personal Financial Management (PFM)?, Aite & Forrester Research, July 8, 2013

{C}[6]{C} What Consumers Want in PFM Tools, American Banker, Feb 27, 2013. http://www.americanbanker.com/issues/178_39/what-consumers-want-in-pfm-tools-hint-not-pie-charts-1057082-1.html

{C}[7]{C} The Financial Brand, April 10, 2014, http://thefinancialbrand.com/38433/the-promise-of-mobile-banking

{C}[8]{C} AlixPartners, “Mobile Financial Services Tracking Survey”, February 2012

{C}[9]{C} ibid.

 

Contact Us

Name *
Name