Envel Community

Ghost & Credit Envelopes

credit envelope would be a line of credit with a amount of time you can hold it until you get paid again

basically, even if you had money, let’s say, in the Bills envelope, you still may not want to have that money cover the overdraft if you have expenses expected to be automatically paid or due before your next paycheck, in which case the line of credit would allow you to still pay your bills and still have the overdraft transaction go through

and if you do have extra money in other envelopes, the friendly ghost asks you for permission so you have complete control of whats going on instead of Envel just pulling money at random, which could cause you to bounce bill payments elsewhere, etc(edited)

and if Envel ever decides to offer small loans in the future, the credit envelope could belong to a type/class of envelopes called “Loan Envelopes”

the Ghost envelope’s type/class could be called “Invisible Envelopes”

another use case for “Invisible Envelopes” could be a scenario where a merchant charges you twice by accident and Envel detects this issue and pads this type of mistake as well like with the Ghost envelope above(edited)

another use case could be for fraud, Envel could use an invisible envelope to cover that fraud charge for you

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Hey Jeff,

Thank you for posting here as well! Just to clarify, the Ghost and Credit would be 2 separate envelopes?

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Yeah 2 separate envelopes with the caveat that the Ghost Envelope isn’t a true envelope, but just a visualization/interface for soft limits. The name “Ghost” comes from (1) the fact that this is an invisible envelope, meaning it only appears when it’s needed and (2) cute cartoon ghosts are often associated with softness, like Casper’s mattress & pillows. Soft limits hehe :stuck_out_tongue:

Instead of the soft limit being automated and blended into transaction history, the Ghost envelope helps the user (1) easily identify there is an issue, (2) manually address the issue themselves so that their current envelope allocations don’t get modified without consent.

The user then has to transfer money into the Ghost envelope from any envelope of their choosing that contains money. Then the Ghost envelope could say something like “thanks for paying the ghost” and this temporary overdraft would be removed instantly while still letting the original transaction go through with the merchant.

The Credit envelope is just an envelope of line of credit, provided by Envel in the scenario that the user (1) doesn’t have any money in their account or (2) they can’t risk using money from other envelopes due to concerns like scheduled bills/expenses or urgent emergencies where they still will need cash on hand. Once their next income-based transaction lands, that money will pay back the Credit envelope immediately to avoid users from holding onto the credit longer than they need to.

Once the Credit envelope has been paid back, the number on it will go from negative (owed) to zero as showing a positive number here might encourage people to think they can just spend it any time haha.

Also, another reason why these envelopes should be separate is because line of credit will make some users uncomfortable as they may want to avoid using credit altogether. I know some people who have a bad history of spending with credit cards may want to avoid this feature, to avoid getting back into old bad habits. But everyone should still have the Ghost envelope, it’s timeframe of holding the overdraft for the user would just be much shorter than the Credit envelope. For example, the Ghost envelope might protect the user for a week where as the Credit envelope could protect the user longer, which would make senses for people who get paid every 2 weeks instead of weekly.

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Hey Jeff,

Thank you again for clarifying! These both sound like great ideas (I actually think naming it a Ghost Envelope is adorable :ghost:). I’ve already logged both of these ideas to the dev team!

I do know that when I first joined the company two years ago, we were opposed to the idea of providing credit cards because we didn’t want to further exacerbate our user’s existing debt. With the credit envelope, what would happen if a user didn’t have sufficient funds to pay it back? Would the owe some sort of interest?

Thank you again for sharing your ideas across our forums, our team is super excited!

Cheers,
Jacqui

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No problem and I’m not sure what other neobanks do with this either but I would prob just consider any longterm unpaid user debt as a company loss and then subsidize these losses with new products like credit cards (with interest), small loans (with interest) and investment portfolios :star_struck:

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Hey Jeff,

Thanks! Are you aware of any other neobanks with comparable features that we could do some more research on?

Cheers,
Jacqui

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Look into how One Finance is doing it. It’s automatically paid off or “replenished” from deposits. Something similar to this in Envel combined with the Autopilot would be killer!

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Oooh I like this a lot! Do you think their interest and APR are reasonable?

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Yes 12% APR is very reasonable. And the 3% APY on their Auto Save pocket is great. I would love to see Envel add an interest rate to the Vault.

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That’s a long term goal for sure!

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Sorry I didn’t see your comment sooner but yeah, One (and some others) is where I got the idea from. My reasoning behind my Ghost & Credit envelope concept is to let the user choose where the money comes from, to pay off that debt instead of having it be taken out automatically, which may confuse some users and make them feel like they’re not in control.

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Thanks! I’m hoping to get the chance to bring up these suggestions at our product team tomorrow!

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This is a great idea @jeffeisley!

@jacqueline is there an ETA or roadmap to when we might be seeing this feature?

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Hey Chen,

Thank you for the feedback! Are you referring to the ghost envelope or the credit envelope?

Best,
Jacqui

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BOTH PLEASE :star_struck:
They are both equally great ideas.:grin: