Digit is a financial technology startup that uses algorithms to track its users’ income and spending patterns, and helps them save by setting aside small amounts of money. The algorithm analyzes a user’s average, high, and low checking account balance, when he/she is paid, and the pay cycle’s periodicity. After searching for bills due within the next two weeks and analyzing recent spending, it transfers an amount that the customer finds immaterial to a savings account that can be accessed anytime.
Digit is working to develop “the first artificial intelligence-powered financial goal program”, which would optimize saving and help users reach their goals faster. Digit is also working on an algorithm to “move every dollar where it should go, at the right time, to minimize fees [on student loans, credit card accounts, etc.] and maximize gain”.
I think Digit would be popular among those who are bad with saving, but not for those who are good with their finances and would like more control. Digit earns profit from the interest rate received on account assets, so users are not receiving anything above their savings. As a potential user, I would rather find another service that offers a return.
Reference: https://www.bloomberg.com/news/articles/2017-01-10/a-siri-for-your-finances-digit-says-trust-me
I agree with Cindy’s assessment. Although there is a market for this as many people, especially of our generation have become dependent on technology to tell us: when to wake up, our appointments, and even automate our spending with apps like Mint and Venmo. However, this, to me, seems a bit intrusive. There is a lot of extrapolation and data collection that, I’m not sure I’m comfortable with. Very intriguing and high tech technology and algorithms though. I’d be interested in how this develops.
I concur with your feeling, Tiffany. I don’t know how I would feel about allowing the app unlimited access to my bank accounts.