Wesabe Makes Money Management Social


While some concepts, like photo-sharing, have seen more than their share of social web app activity, other areas are nearly untouched. Take personal finance. While it will take some tricky maneuvering to avoid overstepping privacy bounds, a recently launched startup called Wesabe is trying to take public the parts of personal finance that can collectively help people make better decisions.

Wesabe CEO Jason Knight’s pitch: “When it comes to personal finance, you’re all alone. if we pool our collective knowledge, we might know something.” Wesabe combines 43 Things-style goal-setting, local reviews and tips, and the nitty-gritty of your bank accounts. The idea is Quicken or Money software as a service with the addition of a community.

Key to Wesabe’s success will be company’s projected vibe. It has to be clean-scrubbed and shiny-faced to get users in the door. To that end, the site is well laid-out and easy to use (I especially like the “badgification” tool which turns any imported graphic into a tip button). Click on the “I’m freaking out” button at any time and you get a Flickr slideshow of kittens.

A downloaded client interfaces with your bank account so the startup doesn’t give itself a chance of mis-managing your passwords. Users have two identities within the system — the one they use privately to compile their income and expenditures, and the one they use to share tips and goals with other users. Knight is making himself personally available for customer support at an 800 number from 12 to 4 p.m., seven days a week (except Thanksgiving), for the launch period. Full export capabilities are promised, but not available yet.

On the personnel front, Knight and cofounder Marc Hedlund, who met as teenagers participating in the squeaky-clean Junior Statesmen of America, are self-funding the six-person, Berkeley, California-based company. Knight was formerly a marketing executive with various companies, while Hedlund was an entrepreneur in residence at O’Reilly Media after co-founding Popular Power and Lucas Online. For more personality, check out their Wheaties for Your Wallet blog.

I held off on writing about Wesabe while waiting for the team to finalize full support for my bank, Bank of America. (For personal background: in terms of financial software, I think once I bought TurboTax, but that’s about it. I do use online banking and bill payment tools as well as the simple and effective BillMonk to keep track of household expenses.) However, Wesabe is an interesting enough idea to tell you about it without fully testing the product, and those of you who use Washington Mutual, Wells Fargo, or many other banks should be fine.

Once within the interface, your bank transactions are automatically uploaded for your tagging and grouping. The system learns from other users, so if one of those typical inscrutable transactions “STORE 00021 PURCHASE #5698” appears, and someone has already labeled it “Apple Store,” the system will tag it appropriately. Wesabe also surfaces collective wisdom by telling you how much you are spending on your services — say, car insurance — relative to its other users, and showing tips that are relevant to the tags you choose.

The system also tries to be smart about weighting feedback by gauging the relationship between a company and a customer. So, for instance, a captive user’s complaint about her mobile carrier would be taken with a grain of salt, while a clothing store’s fan club couldn’t easily push its rating off the charts.

Then, because an advertising-based business model would be entirely inappropriate, the company will have to convince users to upgrade from free to $4.99 per month (though early members will get the premium level for free through 2007). Knight admits the challenge is helping people save enough money that they will be willing to spend money on his product.

I think I will try using Wesabe for the next month or so. I did overdraw my checking account last week, so I already have my first goal ready-made…now I just need to find a good picture for a badge! Let us know if you think you could overcome your privacy concerns to make your finances a little less lonely.

Check out a couple detailed product reviews from Matt Haughey and Michael Calore.


jenifere fox

I have been using manageMe and find it suitable for my financial needs. This web application helps me to keep a track record on my daily expenses while traveling too. It is also launching its enhanced version manageME7. you may check the updates on http://www.manageme7.com/blog

Hedge Fund

I don’t now. I am only 25 and feel overwhelmed with the 30 social media websites I’m already a part of. I think social media will be around forever now but there is only a segment of people who want every website they go to be SM driven. I wonder what the average age of their user is…

  • Richard
Prosper Loans

I’ll have to check this site out. I really liked managing my money with Microsoft Money (don’t laugh), but it was too time consuming. I’m also a big fan of Prosper. Check out the site ProsperLoansOnline for more info on lending and borrowing.


Wesable service is very similar to two companies- Yoodle and myCFO.com in mid 1990s. Yoodle had a dificult time convincing consumers to share their personal and financial information with them, since Yoodle was not a financial institution, hence no oversight. Wesable will face similar issues. Any new technology (Web 2.0 in this case) can just be a business enabler. However, the business issues, such as trust, security, privacy,etc., remain the same as they were in mid 1990s for companies offering financial services products.

Jeff Fassnacht


I agree with the transfer comment, and there actually is a hack to do splits, but to say Wesabe seems mostly like a way to target advertising through tips is so out of proportion with the experience of the site, I have to laugh. Where do you see the advertising?

Anyone who personally knows the founder Marc Hedlund or has heard him speak at a conference (most recently about the “Digital Bill of Rights” at the Web 2.0 Conference in SF) will tell you selling advertising is not on his agenda.


This won’t be useful until you can track transfers from one account to another (they say they’re working on it) and until you can do splits (is Costco groceries? electronics? household?).

All deposits are called “earnings” and all withdrawls are “expenses” even if the funds are simply put into another account.

Also the goals don’t tie into the finances at all.

Seems mostly like a way to target advertising (they call them “tips”) to the vendors you’re buying from.


http://WWW.Prosper.com is onemore company in this space . i like the idea very much and looking at the details it looks they have done their home work well . i saw a talk given by one of thier executive at google tech talks . it was wonderfull

Ryan Williams

I like what I seen so far in Wesabe. The tips and goals are nice social features that should help people start sharing thoughts on how to improve their finances.

But, I just wanted to point out that NetworthIQ (http://www.networthiq.com) has been doing social personal finance for over a year, allowing people to track, compare, and share their net worth (sharing is optional). I’m sure our conversion rate of visitors to users is lower than most apps because of the nature of the data, like you point out. But, we have many fans and we’ve learned some amazing things about people opening up their finances. A third of our users choose to share publicly, and many are driven by doing so. Having people to hold them accountable for improving their bottom line seems to be an added motivator, being able to see how you’re doing compared to others in similar life stages is a popular feature too.


I dunno if i’ll try it. These days, something has to be uber-cool to get me to sign up. Otherwise, I just won’t bother.


A lot Wesabe’s usefulness is in making your personal finances easier to understand and bringing together a community that can help one another solve financial problems. While not quite there yet, once more users join, it’ll be interesting to see what happens. It’s also neat to see what other people are paying for the same or similar services.

Marc Hedlund

Hi, Essin,

That wasn’t quite my experience, but I ran the conventions, so what do I know. :)

Jason was the top debater for Southern California, and I was the behind-the-scenes guy. I guess that’s still the division of labor.


FYI – Junior Statesmen of America is anything but squeaky clean. The conventions are alcohol-fueled orgies for high schoolers.

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