Since its creation, EVO Banco’s goal has been to combine traditional banking methods and new technologies. Its intention is to create new products and services that are able to adapt to the lifestyle of its consumers in the digital era.
One example is the creation of an automatic savings tool such as the “Hucha Inteligente”.
The union between banking and FinTech startup can be very fruitful
The collaboration with a fintech like Coinscrap Finance is based on the 100% digital philosophy that characterizes EVO Banco. In their search for the most innovative technology, they have added a new tool to their portfolio of products and services: smart microsavings. In the following lines we explain how it works.
Through an application programming interface, or API, this development is integrated into the bank’s digital platform. Our open banking aggregators guarantee global coverage and the installation is multilingual and completely flexible. In addition, behavioral finance teachings have been applied to enable the user to make the best decisions for their financial health.
How does the Piggy Bank apply a theory developed by a Nobel Prize winner?
“Consumers often make impulsive and emotional rather than rational and logical decisions. Companies can use the principles of behavioral finance to influence these decisions and improve their profitability.”Richard Thaler, 2017 Nobel Laureate in Economics
The “Hucha Inteligente” offers a fully customizable configuration by the customer. Through automatic rules, gamification modules and investment options, it manages to give the user that little “push” needed to prioritize future advantage over immediate enjoyment. Another of R. Thaler’s teachings is: “If you want people to do something, make it easy”, and that premise guides our developments.
Behavioral finance is a field of study that explores how psychological, emotional and social factors affect people’s financial decisions. This economist’s research highlighted the importance of removing obstacles that prevent people from achieving their financial desires.
For example, through regular transfers or rounding off purchases, our microsavings module allows users to reach their goals. In addition, they can choose to give their goal a name or set an image and a deadline for its achievement. This way they stay more committed to saving and their engagement increases.
How EVO Banco’s “Hucha Inteligente” works
With “Hucha Inteligente”, users save without realizing it thanks to automatic rules. It is a service that puts “your money to work” to make your dreams come true. The way it works is very simple: goals are set, it is personalized -as we have already mentioned- and savings rules are established:
Rounding of purchases
Payments made with bank cards are rounded up to the amount of the customer’s choice.
If there is an extra income, the user receives the recommendation to allocate a part of it to the Smart Piggy Bank.
Every month a fixed contribution is made to the Piggy Bank of the previously established amount.
EVO Banco donates 100% of the user’s contribution to the fight against cancer. These donations are tax deductible.
Percentage of income
Indicating what amount is transferred to the savings account when the monthly income is received.
The chosen amount is added to the piggy bank every time the user’s favorite team scores a goal.
Thanks to this type of development, an exponential increase in the use of the App is guaranteed. In addition, the fact that goals can be shared with family and friends, showing their evolution and degree of fulfillment, boosts customer commitment and satisfaction. This tool is triumphing among millennials and Gen Z for its simplicity and good results.
An opportunity for Unit Linked investment products
Where does the money saved go while the goal is not reached? The money earmarked for immediate needs, such as vacations, is paid into a CASER life insurance policy. But if the amount is going to stand still for a longer period of time, for example, for retirement, it will go into the EVO Intelligent Investment Plan, which uses Finizens Robot-Advisor technology to manage the assets.
These are the “Hucha Inteligente” pension plans in its “Safe Deposit Box” category:
- Conservative: Composed of the Finizens 1 pension fund. The majority of assets invested in are fixed income (83%). Complemented by equities (12.5%), real estate (2.5%) and liquidity (2%).
- Dynamic: Involves investing in another of Finizens 3’s portfolios, which can reach 60% equities and, therefore, higher potential returns, in exchange for taking on more risk.
- Aggressive: About 90% of the contracted pension fund goes to the stock market. It corresponds to the Finizens 5 pension fund. The minimum contribution to this plan and to the two previous ones is 30 euros, both the initial contribution and the periodic contributions.
Key figures on the integration of EVO Banco’s “Hucha Inteligente”
We have found that the rule preferred by users is rounding. However, the one that accumulates the most savings is monthly savings. At Coinscrap Finance we put the best of ourselves in all the projects we develop.
We believe that because of this, and because of the good work of EVO Banco, the Smart Piggy Bank has managed to reach the following figures:
2.440,80€ savings per user on average
4.6 active rules
on average per savings target
As Paz Comesaña, Director of Marketing, Advertising and Strategic Alliances at EVO Banco, said when she received the Paraguas Communication Award for Best Product Strategy for the “Hucha Inteligente”: “Startups are allies, not enemies” and it is clear when we see that the real beneficiaries of these alliances are the end consumers.
“At EVO we are always attentive to the needs of our customers and we want to make it easy for them; for this we have the “Hucha Inteligente” which is a product that allows you to save while you spend, with a very easy and fun UX, incorporating attractive and current rules and thus, we manage toPaz Comesaña – Director of Marketing at EVO Banco
give life to the dreams of our customers“.