Personal financial management service 22seven has cut its monthly subscription fee by more than half, from R60/month to just R25, while adding the ability to track investments, loans, unit trusts and other financial information.
Some might see the price cut as a sign of trouble, but the company is billing it as the next step in its evolution.
“Yes, it is possible to make money, even with a R25 subscription,” CEO Christo Davel tells TechCentral. Since Old Mutual bought 22seven in January, its staff have had their heads down “making this thing close to what we want it to be”, Davel says.
“Having the muscle of Old Mutual behind us means we can start taking long views. The long-term value we can generate from people really engaging with the firm is better than making money upfront from subscription fees.”
The company isn’t making a big deal of the price cut with marketing drives or other campaigns, but is simply telling existing customers about the change via e-mail, Davel says, adding that he’s far more excited about the additional features that have been added.
“Until today, it was mostly transactional information people could aggregate — bank accounts, store cards and so on. Now, we’re broadening what we cover and just about every type of financial product a person can have is getting pulled in, whether this is unit trusts, savings or insurance.”
Davel says the company’s iPhone app will also get new features and functionality in coming days.
Since 22seven was launched in 2012, a number of free personal financial management alternatives have emerged. They include an offering from Old Mutual sister company Nedbank and one from accounting software developer Sage Pastel. — (c) 2013 NewsCentral Media
