The department said it was looking for ideas that would help the public become "smarter financial consumers."
The contest, dubbed the "MyMoneyAppUp Challenge" has two categories for entries.
The first category is for ideas laid out in 140 characters or less for "app-based solutions from the general public."
This category is open to one and all and calls for quick, concise, ideas for new, financial apps, which is short for digital applications.
"Mobile technology has become an increasingly important part of many Americans' lives, creating new opportunities to help consumers make smart financial decisions in user-friendly ways," Deputy Secretary Neal Wolin said in a statement.
Prizes for fresh ideas range from $250 to $1,000. The public will be able to vote on the ideas with a panel of judges taking it from there, awarding prizes to the 10 most popular ideas.
The second challenge includes awards of $2,500 to $10,000.
That category is for application design outlined in detail.
"Contestants must complete an online submission form detailing their design and how it will improve financial capability and/or access," the department said.
As an added twist, the Treasury said it was encouraging app designers to use ideas submitted to the IdeaBank for their projects.
Ideas and apps designs can be submitted online at MyMoneyAppUp.challenge.gov., the department said.
Details for the contests, sponsored with help from the D2D Fund and the Center for Financial Services, are available online.
Obama 'selfie' photographer speaks out: 'Photos can lie'
Wisconsin business offering 'therapeutic cuddling' forced to close