Innovative Fintech — Corestrat Newsletter — Jul 2023

Digital Finance Management

Finance management is going digital. Emerging fintech platforms are transforming how individuals manage their financial lives — from budgeting to banking, borrowing, investing and more.

This newsletter explores the technologies shaping the future of personal finance. We’ll cover trends like open banking APIs, AI-powered apps, and automated advisors. You’ll discover innovative startups and apps that help you take control of your money through intuitive digital tools for saving, spending, investing, and planning.

We aim to keep you up to date on the fintech ecosystem empowering individuals with digital solutions for financial well-being. By democratising access to sophisticated money management capabilities, fintech is transforming traditional personal finance.

Whether you’re looking to automate budgeting, access loans, invest in stocks, or improve credit health, this newsletter explores the leading-edge fintech platforms driving the future of finance. Let’s dive in!

Some key trends and challenges shaping the future of personal finance management:

Major Trends

  • Open Banking APIs enabling connections between financial apps and institutions.
  • Digital transformation providing web/mobile interfaces and tools.
  • AI and machine learning powering predictive analytics and custom insights
  • Automation through robo-advisors and chatbots simplifies investing and planning.
  • Cryptocurrencies and blockchain transforming payments and transactions.

Key Fintech Solutions

  • Budgeting and expense-tracking apps
  • Credit monitoring and services
  • Digital investing and trading platforms

Top Challenges

  • Ensuring the security and privacy of financial data
  • Navigating regulatory compliance across markets
  • Building user trust and driving adoption of fintech apps
  • Making solutions accessible and inclusive to all income levels
  • Achieving reliable technical infrastructure and performance

Some updates on funding, partnership, launches & trends are below.

Digital finance company Achieve recently secured $50 million in financing from Silicon Valley Bank for its home equity loan program. Achieve provides accessible online personal loans and tools to help consumers consolidate debt and improve finances. Its HELOC product allows homeowners to use home equity to pay off high-interest debt and lower monthly payments. On average, Achieve’s HELOC borrowers save nearly $10K annually on interest costs. This highlights innovative fintech lenders expanding access to alternative online lending options beyond traditional banks.

India’s RupeeRedee has raised $3.5M in new funding for its digital lending platform FincFriends, bringing its total equity to $11.6M. The new capital will support RupeeRedee’s growth and continued expansion of financial inclusion efforts in emerging markets. The company aims to disburse $130M in loans in 2024 as it scales up operations and products. RupeeRedee exemplifies the rise of fintech lending apps making personal loans more accessible. With innovative credit models, such platforms provide alternative borrowing options beyond traditional institutions. For those in need of financing, fintech lenders like RupeeRedee may offer online solutions to access capital conveniently. As always, compare interest rates and terms carefully.

Investall recently launched an AI assistant feature for its trading and investing app. The new AI leverages machine learning and natural language processing to streamline app navigation and provide personalised, conversational experiences. Users can now efficiently execute commands via voice or text to manage investments, get forecasts, and obtain insights once exclusive to institutional traders. By incorporating cutting-edge AI, Investall aims to make automated finance management more accessible. The launch exemplifies how fintech innovation transforms personal finance and democratises sophisticated tech. For those seeking robo-advisors or automated trading, checking out Investall’s new AI capabilities may be worthwhile. As always, evaluate any investing service carefully first.

Digital finance leader Achieve completed a new issuance of personal loan-backed securities with Cross River Bank. The $50M issuance allows Achieve to expand its investor base and funding sources. This supports its mission of providing innovative lending solutions to help consumers improve their financial well-being. Cross River’s banking and payments infrastructure will strengthen Achieve’s personal loan platform. The partnership exemplifies fintech innovation expanding access to capital. Such digital lending platforms offer potential alternatives beyond traditional credit channels for consumers. As always, compare interest rates and terms carefully first.

Saudi fintech startup Mthmr raised $1.6M in seed funding to continue developing its AI-powered personal finance app. The funding round included participation from esteemed investors such as Waed Ventures, Dahran Trading Group, and Le Augure, alongside supportive angel investors. Mthmr aims to automate and simplify expense tracking and savings for individuals. The funding will support expanding its product features. As consumer demand grows for personal finance tools, innovative fintechs like Mthmr are using technology to disrupt traditional money management. For those seeking easy digital expense tracking or savings automation, Mthmr’s app may provide a convenient option worth checking out.

Personal finance app Wally recently launched a new AI assistant feature called WallyGPT to enhance its digital money management capabilities. Leveraging OpenAI’s GPT technology, WallyGPT can understand and respond to users’ finance questions in a conversational way. It provides personalised insights and recommendations to help with budgeting, planning, investing, and improving financial literacy. WallyGPT exemplifies the innovation fintech apps are pursuing to add more value through AI. By combining users’ private data with machine learning intelligence, apps like Wally aim to make managing personal finances simpler and more effective.

UK personal finance app TotallyMoney has partnered with fintech Bud to launch a new open banking-powered service to help customers proactively manage finances. Leveraging Bud’s AI and data analytics platform, TotallyMoney will provide predictive insights and payment tracking to over 5 million users. This aims to help them stay on top of bills, avoid overdrafts, and protect their credit scores. TotallyMoney will analyse users’ real-time banking data to identify regular payments. Bud’s models generate dynamic forecasts of upcoming bills. Users also get alerts showing payment impacts on credit scores. This innovation exemplifies how open banking and AI enable more personalised and proactive finance tools. For those seeking to take control of finances, TotallyMoney’s new digital solution provides helpful visibility into bills and credit health powered by next-gen technology.

The global personal finance app market is expected to grow at a CAGR of 16.5% from 2022 to 2030. The growth in the market can be attributed to the increasing adoption of smartphones and tablets and the growing demand for mobile banking and financial services. In addition, the rising awareness of personal finance management among consumers is also contributing to the growth of this market. The global personal finance app market by type is segmented into Android, iOS, and others. The Android segment dominates this market with a more than 60% share.

A recent survey by Capterra found that 60% of respondents now prefer advice from personal finance apps over financial professionals. Additionally, 64% feel fintech tools have reduced reliance on advisors. Younger generations and the middle class have been the biggest adopters, with Millennials and Gen Z making up 55% of users. The convenience and accessibility of fintech resonates most with these demographics. The top solutions include banking (82%), payments (63%), and personal finance management (57%). Overall, 73% of fintech users leverage 2–5 different apps for investing, planning, and more. This data highlights the growing mainstream adoption of fintech for managing personal finances digitally.