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New money app tracks spending and sets weekly budget

Written by: Paloma Kubiak
A new free app which reads your bank account data, calculates your weekly spending budget and forecasts when you’re likely to go in the red has launched.

The Pariti app is currently only available via the iTunes App Store. It is aimed primarily at the millions of Brits who struggle with personal debt, lack of savings and uncertain incomes in a bid to improve their financial health.

Research by Pariti found that four out of five people aged 18 to 24 are not able to save any money from their pay packets and may be forced to rely on credit cards and expensive loans to cover emergency expenditures.

While designed with people in financial difficulty in mind, the money app is available to anyone. You’ll need to have iOS 8.1 or later in order to download it and it only works if you have online banking set up with your provider.

Officially the app launched today, but it has been available since the end of 2015. So far, over 25,000 people have downloaded the app. Here’s what you need to know…

How does it work?

Once you’ve downloaded the money app, you’ll be able to select the bank you have products with, whether it’s your current account, credit card or savings account. It then connects to your accounts and automatically detects and forecasts upcoming income and bills using a series of ‘algorithms’.

Once it has read the information, the app can then tell you how long it will be until you’re likely to go in the red, so customers are motivated to make savings to minimise the chance of getting into debt.

In weeks where your income exceeds outgoings, you are incentivised to continue to save money too.

How secure is it?

Pariti told us it uses “multi-level security to keep a user’s data safe” while the app is ‘read-only’ so money can’t be moved or transferred.

It added that it uses the “same advanced encryption and industry-standard security practices used by banks” and is verified by internet security experts Comodo. The data is aggregated by Yodlee so Pariti does not store users’ data.

In order to open the app on an iOS mobile phone, it requires Touch ID and a pin numbers. If customers decide to close their Pariti account, all the data will be permanently deleted.

Pariti said it’s also awaiting regulatory approval from the Financial Conduct Authority (FCA) to conduct credit referencing, credit broking and debt counselling. The FCA said it can’t comment on individual firms and whether they’re going through an authorisation process.

Users in control of their finances

Matt Ford, Pariti’s founder and CEO said: “Many people, particularly those just starting out or on low incomes, are financially very fragile. They may be only a few pounds or days away from getting into debt each month. They either ignore the problem, hoping it will disappear, or take out a high interest loan which compounds the issue.

“By providing a clear and simple picture of their financial status and helping people feel like they’re in control, Pariti users can make more informed choices today and see how that decision will affect their position in the future.”

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