New Apps Help You with Personal Finance

Kimberly Watson, Editor in Chief
June 27, 2012 /

An increasing number of companies believe consumers would rather get advice from the best new personal finance apps.

With data received from the “cloud” the new web and mobile apps have the potential to create disruption in the personal finance industry! Consumers would be offered new and innovative methods of maintaining budgets, keeping control of their portfolios and reducing investment management fees.

However, the best new personal finance apps also come with the warning from some critics, that there could be a security risk and an attitude of complacency could develop among users. Despite this philosophy, venture capitalists gave $150 million in funding, to companies that made presentations at Finovate, which is double the amount given in the first quarter in 2011.

Finovate is a conference series, presenting new financial applications. Two hundred companies are expected to present at the events this year. This November, is the first time the company, will host its event in Asia.

Their goal, contributed to by the new personal finance apps, is the funding of the next Launched five years ago, reports show there are now over nine million users. The service is free and users are able to gain advice relating to savings and total bank investment information, through the website and mobile app.

The new personal finance apps are designed to replace the traditional financial advisors or by expanding on Mint and similar applications. This would be achieved by gaining access to recent behavioral finance research to ensure users conform to budget planning. Several companies, including Mint, automatically import data from user’s credit cards, loans, and bank, brokerage and 401(k) accounts.

Because of the wide and varied use given to credit and debit cards, by about 60% of consumer’s financial dealings, services are able to analyze the various spending categories. Some applications are able to determine the sums spent on specific items and at which stores. However, the best new personal finance apps will incorporate various techniques to motivate users into changing their savings and investing routines.

An example of this would be a user saving more than expected. The service would determine the most beneficial method of utilizing the extra available finance. This service is to an extent undermined by a reported cost of $8.95 per month!


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