Aaron Patzer: Timing Is Everything

Capturing Consumers' Hearts and Minds

Sometimes it's more about hearts and minds than cold hard cash. "Mint hasn't gone into the transactional realm; banks still offer the transactional capabilities, they hold the money," Patzer acknowledges. "But PFM is becoming the front end of the banking system. This is good for consumers -- it gives them a more in-depth picture of their money and what they could do with it," instead of the balance information and marketing pitches that banks typically push out to their customers. This is more than just hype: Since Mint was acquired by Intuit, it has grown by a 250 to 350 percent annual rate in users and revenues, according to Patzer's LinkedIn page.

Why don't bankers understand this? Why did it take a 25-year-old entrepreneur (albeit one who was an IBM employee with degrees in computer science, electrical engineering and computer engineering) to develop a successful PFM solution? "Unfortunately, the problem is that banks are not technologists," Patzer declares. "They are not oriented to delivering compelling consumer products on the web. They might be good at delivering compelling financial products, but with some exceptions ... the kinds of people who can produce the kinds of experiences an Apple, Facebook or Google does don't typically work for banks." Mint's success is not just about drive and determination, Patzer concedes.

Consumer uptake of PFM tools no doubt was influenced by the disrepute that has clung to much of the banking industry in the aftermath of the subprime meltdown and subsequent financial crisis. "The financial crisis in some ways was the best thing that happened to Mint," Patzer says. "It was not just the backlash against banks, but also, people started thinking, 'I need to really understand where my money is going.'"

Today, Patzer is focused on growing Mint geographically beyond its current presence in the U.S. and Canada, as well as expanding PFM to other platforms and capabilities. And with all the buzz about NFC-based mobile wallets, he spies another potential target: "We can play a big role in that," Patzer says of the mobile wallet space, adding that the current offerings "just tell you what you have, not what you should be paying [or] ... how to manage your money. It's an infrastructure layer -- just a replication of your existing wallet."

In addition to his role at Intuit, Patzer is an active investor in start-up technology companies. How does he decide where to invest? "I look for three things," he says. "Does it solve a real problem? Is it in a large, billion-dollar market? And do they have something sustainable -- some kind of great technology no one else has developed or a network advantage?"