Downloaded more than 200,000 times, the financial app Acorns is introducing new technology that warns you when you’re about to spend too much money. Using artificial intelligence this app will predict what you spend, where you spend and, based on your behaviour, how much money you will have at the end of the month.
This new ‘robo-budget’ technology scans and categorises all transactions in the user’s bank account in order to break down their spending into fields (entertainment, transport and so forth) and uses them to create a monthly spending report.
Although this categorisation is still in its early days, developers say that if a transaction has been wrongly tagged the user will only need to retag that purchase once, in order for the app to recognise its error.
Acorn conducted a study of 1000 Australian users. Results showed that three out of four millennials cut back on their spending with the assistance of the app.
Many view this app as being controversial, with the Commonwealth Bank blocking its customers from accessing its services. The developers claim that the technology was developed to help users manage their personal finances with as little effort as possible and being the first of its kind there is still plenty of room to grow and develop.
If you are having difficulty monitoring your spending habits or would like a little assistance categorising payments this app is for you.
For more information read our article on the future of banking apps.