TD Bank and Moven are apparently getting closer to launching their popular Canadian money management tool in the U.S.
Moven announced on Tuesday that it has agreed with TD to extend its exclusivity rights for an additional five years in Canada and extend those rights to the U.S. With the move, Moven has essentially agreed not to white-label its software with any other banks in Canada or the U.S.
The MySpend app, which is a companion app to TD’s mobile banking app, allows users to track their spending habits and receive notifications in real time.
The app has proved a hit with TD’s Canadian customers since launching last year. Its success made the partnership extension a no-brainer, the companies said in a press release.
"Within nine months we’ve already exceeded 850,000 registered users,” Rizwan Khalfan, the bank's chief digital officer, said in the release. “We are seeing customers who are using the app reduce their spending by around four to eight percent, with most frequent users seeing the greatest impact.”
Although the companies have agreed to exclusivity in the U.S., it appears that the rollout here is still to be determined.
“We are thrilled the app is adding value to our Canadian customers in such a meaningful way and we'll continue to evaluate our opportunities in the US,” Khalfan said.
Such tools are gaining in popularity in the U.S. For instance, Bank of America recently included budgeting tools in its most recent mobile update.
Moven said in the release that the deal with TD would contribute to a significant increase to its projected revenue. Although the neobank started as a stand-alone business and remains one, white-labeling agreements such as the one with TD are instrumental in building profitable businesses.
“We realized early on that we couldn’t get tens of millions of customers using the app across multiple geographies without partners like TD, who bring us real scale and solve one of the biggest problems that fintechs face today, which is recurring revenue growth,” Brett King, Moven's CEO and one of its founders, said in the release. “We continue to offer direct to consumer capabilities in the US, and we just announced the launch of our app in the UK, but the bigger numbers are coming from our global banking partnerships.”