Confused about how much of your paycheck to stash in your savings account? The three-to-six months-worth of expenses rule may not be the most optimal solution anymore. So, mobile-first Moven came up with its own solution to provide customers with a personalized savings path.

The new feature, Moven Smart Savings account, will provide customers with behavioral-based savings advice, through an individualized Savings Path. “The Moven Savings Path may be the first time a customer has seen near, mid, and long term financial needs presented together instead of as disconnected accounts with no relative size or position,” Tim Leithead, global enterprise architect at Moven, told Bank Innovation. “The savings path will thus include components ranging from a short term wish list, to building an emergency fund, to paying down high interest debt, through beginning the process of saving for retirement.” Once the customer sets up his wish list goal and begins saving, the app will send out reminders, in order to discourage the user from tapping into the savings. “Customers will have to repeatedly tap to “break the glass,” which serves to remind customers of the spending / savings tension, and the opportunity cost of using their savings now — as they’ll be further removed from reaching their wish list goals,” Leithead said.  

The initial rollout of the app is planned for the end of this month and will include select users. In the future, the app will be availbale to all users and will also include context-driven savings opportunities. “This might be a point in the month at which the user has spent less than typical and is thus in an ideal position to save, or in another use-case immediately after a customer receives their paycheck as an inducement to reduce their discretionary spending, and thus start saving,” Leithead explained.

The Smart Savings Account is a “natural first step” in customers’ savings journey, Leithead said, and investment advice through the app will soon follow.

Moven anticipates a 20% initial adoption by current customer base, and “perhaps higher among new customers, as we anticipate many will join because of our savings feature,” he said. “What excites us most about this is the goal of bringing on first time savers, and helping our customers that have not saved before begin to build toward a better financial future.”