South African Money Manager Runs Into Uncertainty

22Seven is a web based service that helps users to manage their expenses. The service that is only available in South Africa, has raised the dust on South African banking scene.

For a user, they have to link their bank account information with their 22seven account. The site pulls data from your bank account, easing the process of entering information. “It doesn’t matter how many budgets we do or how many books we read, we will still act like the complex, emotionally governed human beings we are.” 22Seven CEO, Christo Davel said. The service promises an easy way to look at finances without spreadsheets that are hard to understand.

The new company has not dogged controversy though. Two South African banks came out to attack the service and warned their customers of giving their information to third parties. One of the banks, Absa, posted on its Facebook page on January 26th warning clients about giving information to third parties.

“Disclosing one’s sensitive information renders the customer completely liable for any losses that may occur due to phishing or other online fraud, as per Absa’s online banking terms and conditions disallowing customers from divulging their sensitive information to any third party.”

Absa also disclosed that in the course of 2012 they will be launching a similar service. This might be a case of competition rather than complication. Security is definitely a legitimate concern for banks and 22Seven. On this 22seven assures its users that it has contracted a US data firm Yodlee which provides concrete security.

Some banks though, have welcomed the service even in the midst of the argument about the security of customer’s bank information.

Mint, an American based money manager, founded in 2007, offers similar services and has been trusted by over a million users. Being well advanced than 22seven, Mint offers a whole lot of services. This includes Mint Alerts. These email and text alerts help you to know crucial information such as late fees, interest rate changes, bill reminders and much more. Hoping 22seven conquers its teething problem, they will introduce these and more value added services. Other service popular in the US is HelloWallet, a Rockerfeller Foundation start up. HelloWallet has over 300,000 users.

Right now 22seven is in its Beta phase, which is free but will be charging 70 South African Rand per month.