I recently posted about about Money Dashboard’s latest feature, a mortgage calculator which aims to save you money on your mortgage via an affordability report, based on the transaction data it’s recording by aggregating your accounts.
I mentioned that more personal financial management tools would be looking to use the data they’re collecting about your financial accounts to provide you with saving suggestions through other products (and inevitably, generate themselves some revenue, which for most PFM tools, has traditionally been a problem).
Another money management app, Pariti, is looking to do just this; in their case, they’ll aggregate your accounts, analyse the data from them and ultimately if there’s a potential saving to be made, will recommend a suitable consolidation loan via their loan provider, Zopa. The partnership with Zopa is the first of a number of planned product integrations as Pariti builds what it calls a ‘marketplace bank’ – it is not a regulated bank itself, but instead connects to a user’s existing financial accounts, and then offers relevant contextual financial products when needed by the user from third parties.
Founded in 2014, in the 8 months since it was publicly launched, Pariti has taken on an impressive 70,000 customers, primarily under the age of 30 (although how many of these have required a consolidation loan is unknown). As well as the analysis, and suggested loans, Pariti also has more traditional PFM tools, such as providing a single view of all of your financial accounts, spending goals, and future cash flow predictions.
One issue encountered by most PFM tools is to achieve the scale they require to make money, and this can often depend on the level of trust they have in the eyes of the consumer. With no recognised brand or history, trust can be difficult to build – and maybe where the likes of MoneySupermarket, which now owns the OnTrees PFM tool, has a competitive advantage; trust, size and good, existing links with financial product providers.
Like many PFM tools, Pariti uses Yodlee for account aggregation, so there is a widely respected partner providing them with a high level of security for your data – all data is “read-only” so money cannot be moved around via Pariti. This is a good start for building trust.
The Pariti iOS app can be downloaded for free from the App Store. An Android version will be launched towards the end of 2016.
- Money Dashboard Mortgage Calculator Launched (September 20, 2016)
- Zopa Announces Plan to Launch “Next Generation” Bank (November 18, 2016)
- Barclays To Sell On Customer Data (June 25, 2013)
- HSBC SmartSave: New Micro-Savings App (December 5, 2016)
- Barclays Launch “Money Tools” To Help Manage Your Money (June 13, 2013)