Web Comforts Those Who Lost Trust In Their Banks
If people no longer trusted their banks, why would they trust some start-up with their most private financial information? As it turns out, interest in these sites is up, not down. Burned by their banks and the stock market, people seeking help with budgeting, saving and investing are turning to sites with names like Mint, SmartyPig, Cake Financial, Wesabe and Credit Karma. Visits to online personal finance sites are up threefold over last year, said Jim Bruene, founder of the trade publisher Online Financial Innovations, and many of the sites say they have grown quickly since the crisis worsened in September. “The worse the news was, the more people started using Mint,” said Aaron Patzer, founder and chief executive of the company, which is based in Mountain View, Calif. “People realize they need to get a better handle on their money.” “It’s the wisdom of the masses,” said Michael Healy, 33, a recruiter in San Francisco who discusses investments on Cake Financial. Marc Hedlund, co-founder and chief executive of Wesabe, said: “Oftentimes you don’t want to talk about stressful financial issues with your friends. Online, you can come in an anonymous way, talk about the things you’re struggling with and get feedback.” Read more in NY Times.