11 May 2011

The Author

Dan O'Malley

Chief Executive Officer

 

Dan believes banking needs change. Sustainable change. As an executive in the banking and credit card industries, Dan realized that financial services suffer from some serious incentive problems. Earning rewards for using a credit card encourages you to — surprise — use your credit card too much. And building big, expensive bank branches encourages under-investment in phone and internet customer service. Dan believes that organizations that create the right incentives can change industries for the better, even ones with as much need for help as banking. That’s why he founded PerkStreet.

Before PerkStreet, Dan co-founded Capital One’s Payments division, where he created the industry-changing decoupled debit card and launched the company’s prepaid business. Dan loves launching breakout new strategies, which he did in Capital One’s corporate strategy team and at Oliver Wyman, one of the world’s largest management consultancies. He also loves math (even if that makes him a dork), with a background in quantitative analysis and a BSE in Operations Research from Princeton University. Other loves? Baseball, cooking, and lightly roasted African coffees.

 

Photo by Bryce Vickmark Photography

SPECIAL ANNOUNCEMENT: PerkStreet to Accelerate Rapid Growth, Give Even More Cash Back
28 Comments
SpecialAnnouncement

Editor’s Note: The following is a special message from PerkStreet CEO, Dan O’Malley.

If you’re a customer of ours, you know PerkStreet was built for people who love to save money — who really get excited about it. What you might not know is how many other people there are like you.

We have some exciting news to announce: just over a year after launch, PerkStreet is now serving more customers than half the banks and credit unions in the country. It’s a watershed moment for the industry and proves that banking is ripe for upheaval.

But that’s not even the best news. This is: We’re also happy to announce that PerkStreet is now putting over a million dollars a year back into our customers’ pockets. We’re thrilled about it. Our customers are thrilled about it. And we’ve seen tremendous growth as a result of it.

It’s a community, not a bank.

PerkStreet is a community of people using technology to save money and improve their own lives. People from all over the country. They get together online to share their secrets to saving on our blog, Facebook page, and Twitter stream. Our community has spread the word about PerkStreet so rapidly that the number of customers we serve has quadrupled over the last six months.

Here at the PerkStreet headquarters, we’re saving an incredible amount of money, too. By cutting out unnecessary expenses like the expensive branches our competitors are still paying for, we save about 70% of what a typical bank pays to keep things running. Our modern approach to banking is how we empower customers to earn so much with us.

We’re leading our industry into the future.

The future of banking lies in helping people on their individual quests to save more money. As the institutions holding people’s money, banks can fill this role naturally. And as the stewards of the country’s financial health, they have an obligation to.

At PerkStreet, we’re obsessed with helping our customers get more for their money. No debit card in the world has more unlimited cash back than ours; no community is more enthusiastic about sharing ways to save.

This week, the financial markets recognized PerkStreet’s leadership in the banking industry. We’re happy to announce that we’ve closed the second round of investment into the company, led by Globespan Capital Partners. Like our existing investors — including Highland Capital Partners, another major private equity firm — Globespan sees in us a huge opportunity to remake the financial services industry. The combined investment of these firms will help us continue to build a powerful, independent company with the strength to take on the big banks — and win.

PerkStreet is about to get even better.

We’re incredibly excited about our latest round of investment. With it, we’ll create more and more ways people who love saving money can do more of it, including:

  • Increasing the amount of cash back they can earn;
  • Connecting with an expanded community to share secrets for saving;
  • Accessing an expanded set of financial services from PerkStreet (To the thousands of customers who have asked for savings accounts — we hear you!);
  • Using a groundbreaking set of online tools to identify additional ways to save and reach financial goals faster.

PerkStreet is for people who love saving money. The people who are best at it — think of your friend who who always has the coupon for the great restaurant, or your cousin who never pays full price for anything — are already joining. But the truth is, everyone is looking for ways to save money. And that’s why PerkStreet is the future of banking.

28 Comments
  • Leslie

    Congrats PerkStreet!! Love this bank!!

  • http://twitter.com/sunkcosts slug

    I can’t wait to see the changes, especially the increased cash back!

  • Jlgomez

    would like to see the amount of money for double rewards to be lowered for people that have a limited income.. At these times people cant keep that much money in the bank.

  • http://www.DrinksAreOnMe.net Dale Cruse

    Sounds like good news all around. Congratulations all!

  • http://twitter.com/cronDavid David Echols

    Perkstreet, thanks for being innovative in the very dull banking industry, where too typically the most evil players win.

    I would highly encourage you guys to keep this kind of innovation going at your company. We need better and easier ways to handle trading value between peoples across the world. I think giving more value to consumers is a good start. There’s good experiments in the works elsewhere as well — like Bitcoin — that have the possibility of revolutionizing how people trade with each other. Please keep pushing us forward, experimenting, and helping the world become a better place for all humankind.

  • Anonymous

    Way to go perkstreet! Woo Hoo!

  • Soopermom

    Perk Street was the very best find! The online banking is easy, the customer service is so helpful and quite kind. It’s brilliant to keep your customers happy. Thanks for not doing what cable and cell phone carriers do… they reward and incentive-ize only “new” customers… but you care about all of us. The old reliable ones who spread the word. Thanks for not forgetting us! 

  • http://pulse.yahoo.com/_ALPPRIQ5ADZSXPQOBTGRMM2YEE K

    This is the best find in the banking world . Thank you Perkstreet you are a Blessing 

  • David V

    I cannot wait for Perk Street to offer Savings Accounts!  We’re ready to move our money as soon as it’s offered.

  • My Prius Has a Gun Rack

    Perkstreet rocks!  Now how about 2.5% or 3.0% cashback for people who keep $10,000 or $20,000 in their Perkstreet checking account?

  • OctopusPrime

    Agreed.  The $5,000 minimum balance for 2% cash back is hidden in the T&C, not communicated clearly in any marketing or pre-purchase descriptions.

    I would happily keep a higher balance in my Perkstreet account if I earned interest on the balance, but I’d rather earn 1.1% on everything I have than 2% on what I spend.

    I haven’t encountered any hidden fees or anything, but the $5,000 minimum feels a little like bait and switch.

  • RBruno

    Does having an interest rate make you feel better about your money? Because I’m VERY glad I’m getting 2% on what I spend instead of 1.1% on my average balance. Because of the amount of money that moves through a checking account that never sits for very long, most people are making much more with the 2%(or even 1%) cashback method than they would with an interest rate. You would have to maintain an average balance of $50,000+ in an account earning 1.1% interest to make the $600 Perkstreet claims the average family earns with their checking account. I think it’s much easier to maintain $5000 in an account than $50,000. Now if you have a large amount of money that’s not being spent, an interest rate makes sense. But then put it in a savings account. Perkstreet’s checking account is the best deal out there that I can find, and I think the $5000 minimum is a good way to encourage people not to be living paycheck to paycheck. Once they start offering savings accounts you will probably have the interest rate you are looking for – maybe even some extra perks for saving!

  • Gary

    If I wanted to invest into Perkstreet which I understand it on the stock market, what firm is holding the investments on Perkstreet? I did call a few days ago and yet I do not remember the firm name for the stock market?

  • Rlang

    You have to spend a lot of money though, to “earn” enough in cashback to justify not having it in a more interest bearing account.  We don’t spend a lot of money and I’ve calculated it out, we are much better off having our $5,000 making what little money it does in our money market than having it in Perkstreet just so we can get the 2%.  I’m hoping they make that amount lower.  I think it was very much a bait and switch…I signed up for the account thinking I was going to get 2% cashback and I didn’t read anywhere until weeks after I signed up that you had to have $5000 in the checking account.

  • Joshf1976

    Perkstreet should offer a savings account where we can keep money, and let that balance count toward the required balance to earn 2%.  Also the savings account should be able to be used as overdraft protection on the checking account.  

  • Docmcfoot

    WHAT ABOUT A CREDIT CARD  NOT A DEBIT CARD??

  • Jjcowan73

    Would like to see online check deposit. I can do that with my current bank and just scan my check in. It’s deposited the next day with no mail fuss.

  • Mary Orens

    On the contrary, the $5000 was spelled out clearly in all the material prior to signing up, but then again, I read every page of the web-site BEFORE I joined up. Even if you were surprised, it is still a great account and service.

  • snickers71

    I’m waiting for the more cash back……..

  • Kayd3531

    still looking for that savings account, i am a new customer its been quite a process to get things up and going hoping the process will be faster and better in the future didn’t like the nine day hold on my deposits and the 4 day wait for transfers to post also didn’t like sending my social via email don’t think that is very safe i remain hopeful that it will be a good thing switching to Perkstreet

  • Todd

    I’m just here because they offer free checking.

  • Brandy

    I was a little bummed that you had to have $5000 in the account to get 2% cash back, felt like that information was hidden. I will say I wish depositing and withdrawing money was easier. I’ve made deposits with UPS. If you go that route, you better take the instructions that Perk Street provides on their website or you are out of luck. I’ve made a deposit at a few locations and none of the UPS employees were familiar with the service PERKSTREET Offers, however, the instructions helped point them in the right direction. I guess I like the convenience  going into a branch and wish that was available. However…I do like the idea of earning perks for my everyday spending and I’m looking forward to how many perks we can accumulate. 

  • Jason Henrichs

    Brandy – we try to make the distinction between the 1%, 2% and 5% you earn as visible as possible without being confusing. Good news on the deposits as we are in the process of rolling out the ability to deposit your check using your camera phone or home based scanner. Unfortunately because the UPS Stores are franchises it requires some education as you’ve experienced. Thanks for sticking with us. ~jason 

  • http://twitter.com/marjoriecarter marjoriecarter

    PerkStreet is a fabulous way to not only save, but no financial charge when you draw out of your account or make a transaction during the month.  You can withdraw from several locations at atm with no charge.

  • http://pulse.yahoo.com/_FH4DPQOAZDXM2RHBY5F6S7O4FM bob

    Found out one hidden problem with PerkStreet the hard way! They limit you to $1,500 per day in spending – no matter how much you have in your account! The most they will raise it to – (after you write a letter and they take 14 days to process) is $5,000 – we lost out on a trip because our money was being held hostage by PerkStreet!

  • Brendan Carroll

    Hi Bob,
    Our daily spend limits help protect you and us from fraud.  Say a fraudster stole your card, they could then clean out your account if there were no limits.  These limits are one of the ways we can offer a generous rewards program.  We would rather give you money than pay it out to fraudsters.  I am sorry you could not pay for your vacation with your PerkStreet card. If you have any other questions or feedback, please shoot me a note at help (at) perkstreet.com (replace the (at) with @).

    Happy Holidays!
    Brendan

  • Marcellapoole

    Hi there, did you find anything that discussed ‘cash advances’ using a PerkStreet Card?  I’m getting conflicting information from Customer Service @ PerkStreet and haven’t been able to find the info on the website.  It’s a “non-pin” transaction–but not a purchase, so I’m a little lost here. 

  • Brendan Carroll

    Hi,
    Cash advances do not earn perks as they are considered cash transactions.  Our disclosures can be found here- http://www.perkstreet.com/disclosures.aspx#disclosure-3.  I hope this helps.

    Best,

    Brendan
    PerkStreet Financial

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