Australia ranks number one in the Asia-Pacific region and ninth worldwide when it comes to financial literacy. According to the World Economic Forum’s Global Competitiveness Report, 64% of Australian adults are financially literate. However, these financial literacy rates differ drastically between major advanced and emerging economies around the world, causing a large gap between various countries.
According to Investopedia, the common budgeting issues worldwide that spenders have the most trouble managing consist of rent, utilities, internet, transportation, groceries, loans/debts, etc. This is where open banking comes into play, to help individual people budget, invest, and spend more efficiently within various categories.
Open banking is a financial services term referring to the use of open API’s (application program interfaces) enabling third parties to analyze and build services around a person’s financial data. These third parties can include trusted and credited banks or other businesses of the person’s choice.
ChintaMoney, one of the ten startup teams taking part in Startupbootcamp’s FinTech 2019 program, is an example of a company that uses open banking to provide financial well-being to consumers. ChintaMoney is a mobile application enabling people to segregate, save, invest, and to efficiently spend money for a variety of purposes. This is achieved by using the “JamJar Technique,” a method that allows one to split their income into various categories and spend from a category using the app. Therefore, users never go over budget.
Founder and product designer Uday Wagh created ChintaMoney to allow consumers to prepare budgets effectively and segregate money without having to open up separate bank accounts. Rather than urging consumers to separate their money into different jars ChintaMoney utilised innovative technology to bring this traditional budgeting tool into the 21st century.
ChintaMoney allows individuals to take control of their finances with confidence by giving them the tools to effectively manage their money. They are able to address the issue of financial literacy and wellbeing worldwide with their innovative startup.