These new tools are designed to assist customers in managing their bills and committed expenses more efficiently, catering to the growing need for better financial planning amidst the rising cost of living.
ubank’s initiative comes in response to research highlighting the primary causes of financial stress among Australians. According to the study, financial stress is primarily due to budgeting challenges from rising living costs (36%), dwindling or depleted savings (34%), and insufficient funds for emergencies or unexpected expenses (33%).
To address these issues, ubank is introducing the Pay Cycle and Bill Planner features, aiming to foster a “cash conscious” mindset among Gen Z Australians, who are increasingly adopting “loud budgeting” techniques and engaging in “no and low-spending months.”
The Pay Cycle feature, a highlight of ubank’s new offerings, enables users to synchronise their pay cycles within the app, NAB said in a news release. This feature provides critical insights into upcoming income and expenses, empowering customers to make informed decisions about their cash flow.
Andrew Morrison (pictured above), ubank’s chief product and growth officer, stressed the tool’s role in alleviating the constant worry about how to allocate paychecks effectively.
“We know our customers are increasingly facing the same challenges week on week; how long does my pay have to last, how much of my pay is already committed, what trade-offs can I make, and what’s safe to spend,” Morrison said. “The first thing our customers want to know is how long the money they have in their spend account has to last till they get paid next.”
Building on the Pay Cycle feature, ubank is set to introduce a comprehensive bills and budgeting solution that allows customers to manually input and manage bill reminders.
This functionality aligns bill payments with customers’ pay cycles, enhancing the budgeting process. Additionally, the forthcoming Bills account and digital card further streamline financial management, ensuring customers have funds set aside for their obligations.
ubank's commitment to customer-centric innovation is evident in its approach to feature development. By actively seeking customer feedback and employing a dedicated research panel, ubank ensures its services evolve to meet the changing needs of its user base.
Morrison highlighted the importance of understanding committed expenses, enabling customers to make guilt-free spending decisions with the money that remains after covering bills and savings goals.
“Once you know how much you’ve committed to your bills and expenses, you know what you can safely spend and what’s left over for that bigger savings goal,” he said. “We want to help our customers make thoughtful spending decisions more often.”
For those interested in exploring Ubank's innovative financial management tools, the app is available for download on both Apple iOS and Android platforms starting Feb. 22.
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