The year 2024 will witness many important changes in the field of personal financial management. From the use of artificial intelligence (AI) in fintech applications to the trend of investing in sustainable solutions, consumers now have more options to optimize their personal finances. Below are the prominent trends this year.
1. Increased Use of Fintech Applications
Fintech applications continue to grow strongly, becoming indispensable tools for personal financial management. Apps like Mint, Rocket Money, and You Need A Budget (YNAB) help users track spending, budget, and invest. In particular, artificial intelligence (AI) is integrated in many applications to automatically analyze spending, helping users make smart decisions and save time.
Outstanding features:
- Track spending and set budgets automatically.
- Integrate AI to analyze and predict financial trends.
- Supports automatic investment and debt management.
2. Alternative Credit Solutions
A new trend is the use of alternative data for credit assessment. Financial companies are turning to data such as cash flow, utility bills and payroll to assess consumers’ creditworthiness. This helps expand loan opportunities for those without traditional credit histories, especially younger generations and groups that lack adequate access to banking services.
Advantage:
- Access loans even without traditional credit history.
- Based on actual data such as invoices and payroll.
- Minimize risks for both lenders and borrowers.
3. Sustainable Investment with ESG
Investing in ESG (Environmental, Social, Governance) is becoming a popular trend, as more and more people choose to invest in environmentally and socially responsible businesses. This is a combination of maximizing profits and creating a positive impact on communities and the planet. Many fintech apps have integrated ESG investing features, making it easier for users to choose sustainable stocks and funds.
Benefits of ESG investing:
- Combining financial profit and social responsibility.
- Invest in environmentally and community-friendly businesses.
- Ability for sustainable and long-term development.
4. Using AI in Financial Management
AI is changing the way we manage our personal finances. From tracking spending to automatically detecting unusual financial activity, AI helps users easily manage their assets and make more accurate financial decisions. Apps like Cleo and Digit use AI to provide personalized financial advice and help users maintain more effective savings habits.
Outstanding AI applications:
- Automatically analyze and predict spending.
- Detect and warn of unusual financial activities.
- Provide personalized financial advice based on user behavior.
Grasp New Personal Finance Trends
Personal finance trends in 2024, from increased adoption of fintech apps to ESG investing and AI integration, are reshaping the way we manage our finances. Taking advantage of these trends will help you manage your personal finances more effectively, while maximizing profits and ensuring future financial security.
