Making Personal Finance easy!
Most of the existing Personal Finance applications are boring because they are all dependent on manual data input, then following the right segments of costs, income or balance, for each of them to be placed on right category, sub-category, type etc… just boring! In addition, you have to consider manual input fails together with the impossibility of live update your financial status, to make it even worst experience. These and many other reasons make the existing Personal Finance applications nearly useless. Lately, in the era of #Fintech revolution, there are indications that many startups are providing or will provide Financial data as a service. Even, EU came with new regulation called PSD2 that will make financial data more accessible in a format of Open data concept. PSD2 gives an opportunity to built such an application in your own, without partnering with any banks to use financial data.
To avoid manual input of data into your application, you need a live or batched feed from your transaction data (credit card usage, bank payments etc…) and only manual input for cash amounts. However, cash is insignificant, as we tend to avoid it as much as possible and instead we mostly buy with electrons.
The solution – Numus apparoach
Numus application can save lives, can make you better at your personal finance, can avoid a financial crisis and help banks get a better understanding of you as a customer. It is not only you as a person that benefits, but the entire society and even the bank itself. Bank can have much better credit scoring for their customers, clients can avoid risky loans, banks can investigate clients behavior while clients themselves can benefit better rates if they perform better. This is a classic win-win situation.
Inspired by a Norwegian TV Show “Luksusfellen”, this Business Intelligence app approach may be a solution for all those who fail to maintain well their own economy, and for those who want to perform their economy, save more and last but not least the bank itself.
The fundament of this concept is a Customer Analytics Data Center that would have the power process data on the transaction level. The duty of the data platform will be to collect, structure, clean, model and present the data to the bank customers as usual Personal Finance application with additional services to increase engagement and gamify the experience.
- If you think the project is cool, please thumbs up on Youtube and share it with your friends, we are Crowdfunding our project soon!
In addition to standard Personal Finance application that we usually face on the market, this solution include benchmarking against a pre-defined user (aka Ola Norman or John Smith in US) that represent the mean transaction of the segmented based user’s properties, for example: How I stand against other users of my age, from my region, owning a house and a car as I do and earning similar in a year, like in buying food and beverage, travelling expenses, electricity this month?
To have more control and plan well your own economy, targeting will be an integrated service inside application where users (bank customers) can put their targets for costs or income or can leave the application algorithm to fill that with projection based on each customer historical data. You can activate a flagging service, so you are warned when approaching certain limits in your expenses and run an algorithm to optimize the use of remaining budget and you do not get broke.
Here is a Proof-Of-Concept in PowerBI for the web application and you can play around with this interactive dashboard below:
Big Data can help make it even better
Last technological findings can make this approach even more interesting and meaningful. Imagine what Big Data and Data Science can do by adding external data for customers that will allow opening of their social media accounts to the bank application. Social media behavior is very important and can bring very important segmentation inside customer categorizations.
Machine learning algorithms can help make the decision and budgeting much better based on other decisions and budgeting techniques so you can avoid a financial crisis in your household, but if that happens how to get better with them.
As I mentioned before, data impersonation and security are a showstopper as we are going to work with benchmarking datasets that imply a set of other customer’s data. Here we can have a potential data leak from one customer to another, so our system must ensure consistency in both sides and the bank system has everything under control. Transaction details of customers can make banks expose their ‘hidden’ costs and fees. Many banks will hesitate to offer this service to their customers just because of this; on the other side, customers have legit right to have such information served.
Beneficiary to this approach is not only the customers and world economy but also the bank itself in cases when they want to perform customer evaluation (credit check) and behave reaction to certain financial statuses. Today’s Credit scoring system lacks better decisions because they miss important data.
I am on the way to build business concept and the technical architecture of this approach. My team and I would love to share this approach on details, including implementation, if any company, association or bank in the world is interested to offer this service to their customers. This can be the best preventive for the World financial system to stay sustainable and not crush as it did before.
The company behind this concept
ELA AS is a new established Data Science startup in Oslo Norway. Build with the conviction that we will offer what is required, we have invested in technology and innovation, to be always in step with time. Technology is always growing and achieving perfection, so what has most contributed to the creation of our Company is the unmatched need for technology, especially in Big Data, Data Science, Machine Learning and Artificial Intelligence.
As application, it won International Prize from IDG International and open our doors to China:
More about the company follow the link: www.ela-as.no
More about the project: www.numus.no