One of the main issues we had to think about when creating the business model for Tomo was how we were going to send money back to individual users once a savings round was complete. Now the obvious answer here is to send the money directly into the users bank account but there are two issues with that first approach.
The first is that it starts to defeat the purpose when the user has just sent the money from that same account. Granted, the money is being saved so who cares right? That might be true, but we want to make sure there is a distinction between the money in your bank account and the money that was just saved communally. That’s a great segue into the second reason for a different approach which is that we wanted to make sure that the money that was saved went towards the purchase of the intended item or goal. We want to make sure that users don’t get too tempted to spend the money on an impulse buy that may hinder his or her main goal.
The solution we came up with was a Tomo Cash Card. We think that giving every user their own cash card is a really intuitive solution to the two issues we noted above. It allows there to be a distinction between the saved money and your normal bank account and keeps the money separate so you can put it away until it’s time to use it for a specific purchase. This will be your personal card so no one but you will have access to the funds on the card. Having cash cards doesn’t mean that we won’t send the money directly to a bank account if a user so chose. However, we think it’s a great option to have for users who will want to make sure the money they’ve saved goes to what it’s supposed to go to! Let us know what you think of the solution below in the comments!
I’ll be writing about different challenges that come up and how we’ve solved for them in the coming entries so it will be fun sharing the adventure with you.