How financial services app Klover compensates its users for their data – AdExchanger

In the data-centric online ecosystem, app users generally feel like a commodity sold to advertisers.

Financial services app Klover is betting it can reverse this dynamic by offering to compensate people for their data when they use the Klover app.

Paying for data is part of Klover’s app, which offers several tools to save money and make smarter budget decisions.

Users can request cash advances to avoid overdraft fees and cover expenses between paydays. They can also access a range of financial services, including credit monitoring services and budgeting and savings tools, through the subscription-level Klover+ offering. The company is also working on setting up banking services and a system for users to watch videos, participate in partner offers, and upload receipts to receive in-app points that can be spent. to increase their cash advances and cover expedited fees.

“We are moving quickly towards a full banking suite,” said Meredith Guerriero, COO of Klover. “And we’ll do that by bringing new financial products to our consumers with banking products like cashback verification on debit transactions, savings, and even mortgages.”

Free and subscription tier end users agree to share data with Klover and associate the app with their current accounts. The app compiles real-time transaction data, survey-based data, and retailer-specific data from retailers like Amazon, Target, and Walmart. This helps Klover understand what products users buy often, where they shop, what type of car they drive, and what types of financial services they might be interested in. ) and uses bank-level PCI/SOC2 encryption on its user data.

This data is used to serve in-app advertisements. Klover creates Custom Audiences based on its user data, and these Custom Audiences can also be traded across all major DSPs, including TradeDesk, DV360, Adelphic, and Xandr, with a measure of sales lift. Advertising partners can also create custom integrations in the Klover app to promote their product offerings.

“We are still very early in our journey,” Guerriero said. In addition to its endemic financial services and retail advertising categories, “we’re also starting to see a diverse set of customers, such as Verizon, GoodRx, Wayfair and many others leaning in because of our insights and our overall performance”.

Klover also feeds data into its own suggestion engine, which offers buyable ads and tips on how users can spend less money on consumer packaged goods (CPGs) and services they use frequently.

“We can see that you regularly buy Tostitos and buy them at Walmart. But we’re also seeing that Tostitos are cheaper at Target right down the street from you,” Guerriero said. “We’re able to bring that kind of intelligence to users so they can make better decisions and hopefully save more money.” This same data also improves the performance of advertisers.

One of Klover’s advertising partners is Savvy, a car insurance comparison service. According to Savvy, Klover users are twice as likely to sign up for Savvy compared to Savvy’s average conversion rate. According to his calculations, Klover users saved about $1.7 million on their car insurance by linking their Klover accounts to Savvy’s service.

“We’re seeing that on average, partners have 5-10x higher ROAS in their existing channels,” Guerriero said. For example, a mobile operator saw its sales increase by 282%, a trading platform increased its sales by 40% and had a 14x ROAS, and a consumer retailer saw its memberships increase by 65. % and its ROAS of 41 times.

Although Klover’s app was designed to be GDPR and CCPA compliant, it is currently only available to US-based users. Millennials and Generation Z make up a large portion of the audience. Aimed at helping people at the lower end of the income scale to make ends meet, household income among its user base ranges from around $40,000 to over $150,000.

Going forward, Klover plans to launch a self-service audience building and targeting solution for in-app and programmatic apps, as well as a separate insights and metrics suite for its advertiser partners.

Stephen V. Lee