SAN FRANCISCO, July 19, 2022 (GLOBE NEWSWIRE) — Two-thirds of Americans are not considered financially healthy (source). A new study from the Financial Health Network, “Building Consumer Savings with Fintech Innovations”, shows the positive impact new technology can have on consumers’ financial health and savings behaviour. Among the study’s key findings: The amount consumers save increases significantly when saving becomes easier and there are more incentives to save. The Financial Health Network used data and insights from Digit (acquired by Oportun) to demonstrate how fintech innovations can help people reach their savings goals.
For the study, Digit, which saves, budgets and invests for its members, analyzed its member data to determine how automated savings transfers and multiple savings goals affect the amount Digit members save over time. Digit’s typical member sets aside an average of more than $3,000 toward savings goals.
The study found that:
- For every month a member kept their checking account connected to Digit, their savings increased by an average of $217, suggesting that automating savings can have a meaningful impact compared to saving on their own.
- Digit members with multiple savings goals saved an average of $114 more over five months than those with only one goal. This indicates that having specific and intentional goals for your money, as opposed to one generic savings goal, increases motivation to save.
- Each additional savings goal a Digit member sets can be linked to an increase of almost $80 in savings over the five months.
“We know how hard it can be to save – our brains aren’t wired for it, and we all lead busy lives,” said Ethan Bloch, founder of Digit and GM of Neobanking at Oportun. “This is an example of how technology can be a force for good, helping us become more financially healthy by removing much of the manual math and reducing the time it takes to manage your finances. We were thrilled that the Financial Health Network saw Digit as an example to show in this research.”
“Improvements in savings have the potential to help consumers cope with the shock of unexpected expenses and prepare for the future, making savings a critical pillar of financial health,” said Andrew Dunn, senior data manager, Financial Health Network. “In recent years, several new approaches have emerged to encourage consumer savings – our latest research explores some of these innovations and finds that simplifying or encouraging savings can ultimately help consumers build savings, improving their financial health.
For consumers, the results of this research are clear: when you automate your savings plan with a clear motivation for the money you save, it is easier to reach your financial goals. The right technology can help make your financial life easier and help you be better off not only today, but also in the long term. Digit gives new members six months free, so you can try it out and see the impact for yourself with little risk.
To read the study and learn more about the Financial Health Network, visit www.finhealthnetwork.org. To learn more about Digit visit www.digit.co.
Data analysis included various regression analyzes on Digit users with available data who joined after January 2020. For more information, read the full report.
About numbers
Digit, acquired by Oportun in 2021, is led by founder Ethan Bloch. Digit’s mission is to make financial health effortless for everyone by providing members with a range of financial services powered by AI Digit launched the first truly personalized and automated savings app in 2015 and has since helped members save over $7.6 billion in total and more than 3,000 dollars on average annually per member. Savings based on the average savings of all paying Digit members over the last 12 months.
About Oportun
Oportun (Nasdaq: OPRT) is an AI-powered digital banking platform that seeks to make financial health effortless for everyone. Driven by a mission to provide inclusive and affordable financial services, Oportun helps its nearly 1.7 million hard-working members meet their day-to-day borrowing, savings, banking and investment needs. Since its inception, Oportun has provided more than $13 billion in responsible and affordable credit and saved members more than $2.2 billion in interest and fees. In recognition of its responsibly designed products, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.
Consult:
Lauren O’Mahony for Digit
415-215-8924
