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Save to Save (Update 18-01-2017! focus on increasing savings feature)

Share saving offers with your community and invest these savings in collectively (Co-op) managed funds in individual accounts.

Photo of Joost Schouten

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Who is your idea designed for and how does it support the dreams and obligations of those 50 and older?

The idea is for all 50 and over. The key is to visualize the current lifestyle spend against aspired lifestyle. The idea is to encourage communities to share and recommend available savings, where those savings are then collected in their personal, yet collective pension plans. It is inspired by applications like moneybox, however the angle is more community based and increases the savings, rather than collecting the change.

Save to Save

User Journey; how to create and use an offer through the App

"Sharon wants to increase her savings to live a similar lifestyle in retirement as she currently enjoys

Sharon struggles at times to be disciplined enough to put the required spending in an investment account.

She also has always been active for her community, and is happy to put in some effort to not only help herself, but also others like her.

She finds that saving coupons and other discounts typically just make her more relaxed about her spending and she may overspend.

If only she could get offers which force her to save more!  And what can she do to help others?"

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ok, lets follow Sharon into her favourite coffeeshop where she meets Ben

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Now we follow the interaction between Sharon and Ben on her phone, she simply opens the app on her mobile and is guided through the process

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The estimated value is important here as it eventually the amount which will get deposited in the savings account when you avail of the offer. AT this stage, i imagine that someone from Save 2 Save would verify the offer with the proprietor. Ideally this is automatically generated and send to the proprietor.

Lets step forward  2 weeks, Save to Save has verified the offer and added it on the app!

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the voucher code generation is a simple idea for control purposes, and for the app to get the saving deposited, before the purchase is completed. Without the deposit, you don't get a voucher code and the offer is not valid. Of course there could be other ways to do this.

Lets also circle back to Ben to see what he thinks!

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Exclusives

I could imagine that co-op/ save to save would recruit exclusive non competing offers from larger service providers. For example, it would be possible to recruit a national airline carrier. Write a tender for what % discount they would offer for app users. The one who provides best value could be selected. Not participating in  the tender risks the service provider to lose market share among the most affluent demographic. Or perhaps another example is Starbucks vs McCafe... Save to Save would provide the exclusivity for a contract duration, with the exemption of small merchants (such as Ben, who has one coffee shop). After all, we would still want the Save To Saver to be active in recruiting local small deals!


Overall Save to Save would help with the following aspects, all geared towards better attainment of retirement goals!

Provide Clarity on Aspired Lifestyle Costs

Save to Save visualizes your current spending against your aspired lifestyle. By categorizing your current budget, spending as well as aspired budget, you can visualize whether your aspired lifestyle-spend deviates a lot from your current spending as well as budgeted spending. This in itself is a powerful  notion and possibly worth a product on its own.

Realize Financial Objective

Save to Save helps reach your retirement objectives in the following ways:

  • Reduce current spending by encouraging to use offers
  • Reduce the cost of future lifestyle by creating saving habits
  • Increase savings as a result of using the offers being deposited in an investment  account
  • Increase returns on savings by balanced investment scheme


How to encourage saving

Advertisers would create offers which only work through the app. Therefore to avail of an offer, you would have to save the saving to your investment account.

Reduce Lifestyle Cost

By promoting the use of offers for your existing lifestyle, the cost of it is reduced. This creates habits which in turn will decrease the cost of the aspired lifestyle if these habits are sustained.

Increase Return

The realized savings are pooled into balanced investment portfolios. As the lifespan increases the 50+ individual’s greatest investment risk is not making the investment return required to sustain an  aspired lifestyle. No longer is an investment horizon for a 50-plusser short term. Making additional savings straight into an investment account will increase the long term return.

Community Approach

Community members can recruit the offer in the app and share with their communities. It requires some effort on the individual which in turn is rewarding especially knowing that your peers are benefiting from this. 


Comparison to what is in the market

It is probably possible to re-create the above idea using a complex set up of apps and institutions. It is however not convenient and not community based. The above idea is to draw on the strong sense of community which exists in this demographic and builds on that trust. It will help get people over the hump to use technology of it is fun, socially connected and easy to use and visualize

What early, lightweight experiment might you try out in your own community to find out if the idea will meet your expectations?

could try a half offline half online version of the idea. There are apps which allow sharing of discount vouchers. An experiment could try to encourage people to share discount vouchers. However most of these vouchers are for non essential spending whereas the biggest benefit comes from saving on fixed spending, rather than discretionary spending. I could also simply discuss the idea with the target group and receive feedback.

What skills, input or guidance from the OpenIDEO community would be most helpful in building out or refining your idea?

First of all, feedback on the idea, is it different enough? Is it simple enough? Can someone help with visualization of savings versus aspired lifestyle spending? what are meaningful buckets? is it possible to gather the data to bucket the spending? If not, what would it take to make it possible?

Tell us about your work experience:

Currently work in Asset Management (data) with a focus on process improvement. Always try to views things from a new perspective. I have designed our own home which we are starting to build early next year (shipping container home!). Furthermore, general interest in social economics

This idea emerged from

  • An Individual

How would you describe this idea while in an elevator with someone?

The app connects current spending to an aspired lifestyle by visualizing in meaningful buckets. It encourages you to save now in order to achieve the aspired lifestyle. By doing so it also makes the aspired lifestyle cheaper as you build habits of saving; finally, the user creates the digital saving and shares with their community, which increases connectivity and makes saving even more meaningful

How might your idea be transferable to a large number of people?

The app has no scale restrictions. However as a user you may want to not be burdened with many irrelevant offers. Therefore you could restrict who you want to share with, or alternatively who you want to receive offers from (twitter like). You may kind of build a following or be a trusted saver!

How do you plan to measure the impact of your idea?

The measure ultimately is whether someone deposits more in their saving account than they otherwise would. The app itself would collect savings and invest in a personal account in a shared fund (moneybox like) and therefore you can easily see how much is saved versus what the target is.

What are your immediate next steps after the challenge?

i actually do not have all the relevant skills, bandwidth or experience to create such an app. I am looking forward to involvement from other IDEO members to help this idea move forward.

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Photo of Kate Rushton
Team

Hi Joost,

Are you able to edit your post now?

Take care,

Kate

Photo of Joost Schouten
Team

Hi Kate, the button is there! i will update my description today. Many thanks for your help

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