Some individuals are simply financially irresponsible and do not know how to manage money, while others find themselves in debt due to unforeseeable circumstances, such as Job loss or an illness. Another factor is that most individuals like to live a comfortable lifestyle rather than get out of debt. Being in any kind of debt is unquestionably a stressful experience. Roadrunner Inc. Is a Silicone Valley USA based startup that plans on aiding people in managing and reducing debt automatically.
Roadrunner takes an individual’s financial information and creates a personalized plan that focuses on getting them out of debt in the fastest and most efficient way possible. Roadrunner pride themselves on their simplicity. Their formula focuses on a payment plan that emphasizes the repayment of the loan that aeries the highest interest first. The software is also capable of sending reminders about upcoming bills, so they get paid accordingly. Company Overview Today Roadrunner employ 12 fulfillment employees.
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In 2013 Roadrunner helped their customers pay down over $125 million in debt, which was an increase of 400% from 2012. The company also experienced a revenue growth of 4000% from 2012. The management at Roadrunner put great effort into differentiating themselves from other financial services by stating that “We are nor a debt settlement, credit counseling, or credit repair company’ (www. Roadrunner. Mom/about-us). It is easy to see how Roadrunner is nothing like a credit repair company, as they are the first to offer their clients a complete look at their financial situation.
The software helps customers reach whatever goal they set out for themselves, while at the same time show them how to get there, step by step. Those who choose to use the Roadrunner software have a choice between a couple of service options. The free version of the software offers their clients basic debt tracking. The $7 a month option or $75 a year option lets their customers access credit score and a payment atomization options. Industry Size/Structure The Financial service industry is, and always has been, one of the biggest industries in the world.
Consequently the credit restructuring and debt assistance industry are also giants. In fact debt in the U. S. Has been increasing at an exponential rate, “The U. S national debt is now about 73% of gross domestic product, the Congressional Budget Office said Tuesday. The percentage of debt is higher than any point since around World War II, and twice the percentage it was at the end of 2007” (Schroeder, 2013). The numbers of Americans that continue to fall debt also re on the rise “Americans’ debt-that includes mortgages, auto loans, student loans and credit card debt-increased by 2. % or $241 billion in the last three months of 2013, the greatest margin of increase since the third quarter of 2007, shortly before the U. S spiraled into recession. “(Frizzle, 2014). With such a large number of Americans facing debt it is easy to see that there is a very high demand for debt management solutions, and according to basic economics, when there is high demand supply will follow. There is a countless amount of firms that offer solutions to debt problems, but none do it in the same way Roadrunner does.
The company offers zero face-to-face time with strangers, and it bundles up all your financial information, while showing you the path to becoming debt free. Opportunity Roadrunner offers a comfortable and simple user experience that almost anybody who has Internet access and a basic understanding of computers can use. The start up is quick and simple. Since the information customer’s input into this software is sensitive and personal, each individual must have his or her own user name and password in order to access the software.
The next step for the client is to plug in their debt information. Once that is done an easy to read chart will appear showing the customer a specific process on how to go about paying down their debt. Roadrunner will also aid customers in tracking their credit score though their partnership with Experience. Experience is one of the worlds leading credit service organizations. This partnership makes Roadrunner the first debt management program that enables their customers to link accounts, pay bills, and also track their credit score, all from one single program.
Individuals see an updated credit score every month, which helps individuals see if they are headed in the right direction. Product/Solution Roadrunner offers their customers a simple, realistic, and visible plan that bundles together their finances like no other financial software service provider before them could. Along with a realistic plan that changes according to each individual bank account they also provide a monthly credit score. They also offer an phone app that allows their users to check on their finances anywhere they may be.
The company software is set up to emphasize intelligent payment escalation that calculates the fastest and most efficient way out of debt. “If you paid below the recommended amount, it adjusts your plan accordingly or makes realities commendations” (Myers, 2011). The software will not only show individuals how long it will take them to pay down their debt, but it will also advise individuals in where to start, and how to take advantage of early payments, all while displaying the impact of each step on a chart.
Roadrunner shows individuals how to allocate their money in a way that will save them the most money. For instance in a case where an individuals account receives a large deposit, the Roadrunner software will recommend a bigger payment towards their debt. Leadership Roadrunner Inc. Founders Oceanic Thayer and Rob Beriberi, both saw friends and Emily struggle with debt. They noticed that one of the more common struggles facing Americans today is debt. Rob Beriberi had a girlfriend that came out of grad school with credit card debt of around $24,000.
After searching online for help in managing her debt they didn’t find an exact fit. While there are a large number of personal finance technologies none seemed too attractive. This led to the idea of creating a place online that would aid people in the management of their debt. They officially launched Roadrunner Inc. In February 2, 2011 and have been working ever since towards aiding common consumers get out of debt. Conclusion There is no doubt of the massive potential Roadrunner has to revolutionize the way the common consumer approaches their personal finance.
One of the major struggles the company faces is that most major banks see no incentive in helping the common consumer get out of their debt, as debt to them equals profits. Its is easy to see a future where an increasingly educated population becomes more comfortable with the service that Roadrunner offers, which will undoubtedly lead to more success for this revolutionary company.