While not a bank in the traditional sense, Oportun — formerly known as Digit — is offering a new way for consumers to do their banking that integrates artificial intelligence (AI) technology. Customers link their bills and credit cards, and Oportun’s algorithms determine how much should be allocated to each expense category when a deposit is made.
This type of fintech account is part of a new trend in the financial industry where banking companies are using advanced technology to make daily money decisions on their customers’ behalf. That includes setting aside money to pay bills, tracking savings goal progress and paying down debt.
The fintechs offering solutions to consumers’ budgeting challenges fill a gap that traditional banks have yet to tackle. But while the fintech industry poses a challenge to traditional banking, there are some areas where it falls short of consumers’ needs.
What consumers want from banking services
The reality of traditional banking is that it doesn’t always deliver on everything consumers are looking for. A study by Galileo found that of the…