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Honest Dollar, Fintech and the Fish That’s Eating the Whale

 

We met William Hurley, aka Whurley, on a Friday afternoon at WeWork, one of many national co-working franchises growing in popularity. The office buzzed with activity from the consultants, entrepreneurs, and fintech startups housed there.

Yet the Honest Dollar founder — who was addressing a deluge of emails armed only with a mobile keyboard — was completely at peace.

A Rock Star Entrepreneur

Serial entrepreneur and inventor Whurley and his most recent startup Honest Dollar fit in well with the hopeful, bright-eyed, and in many cases inexperienced, entrepreneurs at WeWork. Œ

The difference is, Whurley is leading a fi‚ntech startup which was acquired within one year of launch by global financial behemoth, Goldman Sachs. Whurley is famous.

He started his career as a touring musician “as everyone now knows,” he pointed out with a smile, “because someone put it on Wikipedia.”

He never went to college, and he’s accomplished more by the age of 45 than most do in a lifetime.

If you follow him on social media, you’ll see him hanging out at the White House for state dinners, visiting with President Obama, leading ThŒe Global Partnership for Gender Equality in the Digital Age, advocating for open source, or rubbing elbows with Hillary Clinton.

Whurley started his career in Austin at Apple, then went on to IBM as a Master Inventor. It after these positions that he got the startup bug— and began going by Whurley, which was originally his Unix username.

He has seen success and failure as an entrepreneur, yet has never stopped creating. He is the author of two books and many articles, holds over 10 patents, fundraises for political causes, has founded multiple non-pro‚fits for social good, and has been a producer for two-award winning ‚films.

All of this while launching companies and building game-changing technology, most recently in the growing world of fintech.

His first really successful venture was a mobile software design and development company. In 2010, along with Ben Lamm and Mike Erwin, Whurley founded Chaotic Moon Studios.

Chaotic Moon

The studio developed the first iPad-only digital newspaper; built applications for Microsoft, CBS Sports, Sanrio, Pizza Hut, and others; and developed products such as a Microsoft Kinect-controlled skateboard (which the company named the “Board of Awesomeness”), a shopping cart that follows a shopper around the store, and a bicycle helmet fi‚tted with seven cameras that begin recording on impact, functioning like an airplane’s black box in case of a hit-and-run (the “Helmet of Justice”).

In July of 2015, Chaotic Moon was acquired by Accenture. Sitting at the helm of another successfully acquired company, Honest Dollar, Whurley continues to have an outsized impact on the industry he’s chosen to displace.

When it comes to the charge for starting a company like Honest Dollar, Whurley makes it clear that the company was a problem-oriented response to a clear need.

An American Crisis

“ŒThere’s a savings crisis in America,” he explained. “If you’re an average American citizen and a $400 unexpected expense arises, it could potentially bankrupt you.”

ThŒis number isn’t arbitrary.

In January of this year, Princeton Survey Research Associates International conducted a survey that reported only 37% of Americans have enough savings to cover a $500 or $1000 expense, such as an emergency pet surgery or a washing machine repair. ThŒe other 67% resort to spending cutbacks (23%), charging expenses to a credit card (15%), or borrowing funds from friends or family (15%).

In addition to this, the survey found that four out of 10 Americans surveyed ran into an unexpected major expense last year, which is a testimony to Whurley’s point: The savings crisis is a problem that has existed without being properly addressed for some time now.

“And that should worry everyone, right?” he says.

Interestingly, the problem became more complex as it was considered further — a fact that doesn’t come as a surprise, especially given the historical focus of current personal ‚finance research.

Unemployment statistics are often too insular to provide insight into the how and why of personal finance, even though the two may be linked.

According to David Johnson from the University of Michigan, “People have studied savings and debt, but this concept that people aren’t making ends meet or the idea that if there was a shock, they wouldn’t have the money to pay — that’s definitely a new area of research.” This has become particularly poignant since the Great Recession of 2008.

Whurley decided to focus his efforts on helping people plan for retirement.

The Retirement Challenge

“I look at retirement as kind of the Achilles’ heel of the financial system,” he explains. “ŒThere are so many areas of our lives that are touched and dominated by ‚finance. And what do people do? ŒThey choose not to think about it.” Œ

This became a root cause analysis that would eventually lead to Honest Dollar’s inception as a web-based way to make retirement investing easy and accessible to everyone, allowing individuals to create and manage their own individual retirement accounts (IRAs) with new fintech tools.

Honest Dollar’s initial charge was to get a basic understanding of ‚financial behavior: If people aren’t thinking about their future financially, what are they thinking about?

Essentially, Honest Dollar offers fintech IRAs designed for the way people actually live and work. Retirement accounts are set up for an industrial era where workers stayed with the same company for most of their lives, contributing equally to a long-term savings account. Today, two years seems to be a long tenure for younger generations.

Simplifying the Process

Saddled with college debt and stagnant wages, these younger generations are forced to put off savings for longer periods of time.

In early September, ŒThe Pew Charitable Trusts released an analysis of access and participation in retirement savings plans that found Americans, on average, haven’t actively saved for retirement.

ThŒe reasoning for this observation envelops a variety of catalysts: from enrollment variations based on industry and region, to access differentials based on age, gender, education and ethnicity.

Honest Dollar, Whurley told us, aims to simplify the process and generate wider access to retirement under the customer’s own terms. ŒThe company’s recent acquisition by Goldman Sachs will ideally achieve this goal even faster than before.

When asked about working with Goldman Sachs, Whurley is quick to answer with two questions of his own.

“Are we now a part of Goldman?” He said leaning back with a smile. “Or is Goldman now a part of us?”

His point holds true — the knowledge exchange incited by the company’s acquisition of Honest Dollar in May holds potential for innovation beyond any current offerings for the financial services industry.

“ŒThink of it as a financial company that has been transforming itself into a tech company, and is now becoming a software company,” he concluded decisively.

Given the track record of Honest Dollar’s development, it’s likely that Whurley plans to make the most of Honest Dollar and Goldman Sachs’ partnership, but he’s not yet saying how.

From mere observation of the company’s past track record paired with the enthusiasm in Whurley’s words, it seems like Honest Dollar has its sight set on rocking ‚fintech with no sign of stopping. Œ

Though he wouldn’t dare give away any teasers as to what to expect from Honest Dollar next, Whurley did, with the same cool he carried walking into the room, leave interested spectators one important piece of advice:

“Just wait and watch.”