It’s not just about setting aside a fixed amount of money each month, but doing so automatically and strategically, and most importantly, effortlessly. Stay tuned to learn about the steps the sector is taking in this direction.
Juan Carlos López
Co-founder & CPO of Coinscrap Finance
The economic situation of many people, especially Generation Z and Millennials, reflects the changes in the global economy. According to Deloitte’s latest survey, 6 out of 10 people live paycheck to paycheck* and mention the cost of living as their primary financial concern. This is creating a savings gap that generates anxiety and makes financial management challenging.
For financial institutions, this segment is critical: failing to adapt to their needs could mean losing a significant market share and missing the opportunity to offer products and services to a trendsetting active population.
From my department, we are clear that the solution lies in creating automatic and intelligent digital tools. Technology enables banks and insurers to simplify saving, making it effortless and freeing users from the need to constantly think about it.
Automatic savings can increase customer loyalty and engagement
Micro-savings is an online banking module that enables people to set clear and achievable financial goals with flexible timelines. It includes automatic saving rules that make the process seamless. It doesn’t require user intervention and offers a variety of options, such as:
- Purchase rounding: Save the difference between the purchase price and the nearest euro, automatically accumulating those cents.
- Income percentage: Allocate a percentage of received income (salary, transfers, refunds) to savings, ranging from 1% to 20% of the total.
- Periodic contributions: Automatic and recurring transfers enable consistent saving, tailored to the customer’s financial capacity.
- Sports events: Users choose their favorite team in the entity’s app and save €1 each time the team wins or scores. Gamifying the experience boosts engagement!
- Physical activity: This feature incentivizes savings through the user’s daily step count or exercise, adding a pre-set amount to their savings goal.
Smart savings goals for your customers
This innovative functionality uses advanced algorithms to suggest personalized savings goals for each person. It’s a Fintech development that helps banks promote automatic savings, improving conversion rates and customers’ financial health. Here’s how it works:
The engine detects recurring expenses—like annual car insurance or back-to-school costs—and suggests a savings goal based on those amounts. It establishes a target date aligned with the expense frequency and calculates the exact amount the customer needs to save to reach their goal.
Dynamic savings to maximize profitability
The key to a successful savings strategy is adaptability. This option adjusts savings contributions based on each individual’s real income and expenses. The entire experience is customized.
Unlike traditional models with fixed amounts, the current system dynamically adapts. This protects users’ financial health while maximizing savings—all without compromising their well-being. Additionally, users can set minimum and maximum balance limits to avoid surprises.
🔎 Let me show you…
… How we use technology to simplify daily tasks: ¡Apply it to reach your savings goals, for example! Read this post and discover how the traditional “piggy bank” has been modernized.
Seizing key moments to boost savings
One of the biggest opportunities for banks is to take advantage of specific moments when people have greater liquidity. This would be the case with a tax refund or a Christmas bonus.
The modules can detect these events and automatically suggest additional contributions to savings goals. This strategy enhances customers’ savings potential without requiring extra effort.
Increase profitability with hyper-personalized financial recommendations
With all these tools, financial institutions can not only simplify savings but also optimize them. Using customer behavior data, the platform offers tailored recommendations, such as:
- Savings growth: “Your savings increased by €646.64 this month. Keep it up!”
- New savings opportunities: “New income detected. Here’s a chance to save more. Check the full report.”
- Savings capacity: “In June, your savings capacity was €646.64, a 7% increase from last month!”
This level of personalization is ultimately what enhances the customer experience. It strengthens loyalty while creating opportunities for users to share their personal achievements with friends and family.
Financial institutions that provide products and services tailored to the real needs of young people will face fewer challenges in staying competitive.
A comprehensive banking solution with multiple value propositions
This automation allows banks and insurers to offer products like investment funds, savings accounts, life insurance, pension plans, and more.
Smart automatic savings help people manage their money more efficiently. Ultimately, improving profitability and user experience translates into increased revenue and NPS.
What more could you ask for?
* 2024 Gen Z and Millennial Survey, Deloitte.
About the Autor
Juan Carlos López Díaz is Chief Product Officer and co-founder of Coinscrap Finance. In 2016, together with David Conde and Óscar Barba, he created Txstockdata and Coinscrap Finance. After the tremendous success achieved, the business pivoted towards B2B, in partnership with EVO Banco and its “Smart Piggy Bank.” As a developer, he has over 8 years of experience leading major projects.
Along with his team, he is capable of creating the best tools for the financial world. From the product department, Juan Carlos has delivered projects for major companies in the sector: Evo Banco, Santander, Caser, Mapfre, and Bankia. He holds a degree in Electrical Engineering from the Central University of Venezuela and an iOS App Development certification from U.N.E.D and U.C.A.M.
