Australian neobank Up has broken fresh ground in the nation’s financial space with the launch of its automatic money management system: Hi—Fi.
Touted as a ‘financially sound system’, Hi—Fi aims to provide users with a simple and engaging overview of their financial position, complete with music.
More than 50,000 Australians have already signed up to the digital bank’s recently launched, app-based Hi—Fi software solution.
“At its core, Hi–Fi by Up has been designed to make money easy,” Up chief product officer Anson Parker said.
“It’s an Australian banking first – and it will allow Aussies to cruise between pay days, take care of their bills and hit their budgeting goals with ease.”
“Equally as important, it will allow them to comfortably know how much they’re due to have left over at the end of each payday so they can spend (responsibly) on the good life.”
Those using the system will be notified when they receive their regular income, with portions able to be automatically funnelled into 'envelopes' for expenses and savings.
Hi–Fi will also allow users an overview of their ‘spendable balance’ - the money they might expect to have left over after regular bills and subscription fees are paid.
As part of the launch, the digital bank surveyed more than 54,000 Australians on their financial positions.
It found almost half of Gen Z are struggling to reach their financial goals due to overspending on their lifestyle, while the rising cost-of-living is hampering Millennials, Gen X, and Baby Boomers.
Though, the impact on the various generations differed notably.
Around a quarter of Gen Zs and Millennials reported to rarely have money left over before payday, while 28% of Baby Boomers always did.
“Our data has now uncovered that since signing up to Up, over two thirds of our customers have a better relationship with money,” Mr Parker said.
“This just shows how our unique innovative thinking and features have helped uplift their financial wellbeing.”
The bank is also aiming to launch its subscription service, Up High, in early 2024.
The model is expected to offer customers a more niche banking experience in exchange for a monthly fee.
The bank will retain its free tier following the launch of its subscription service.
“We don't believe that people should have to pay for that basic, transactional banking experience,” Mr Parker told the Savings Tip Jar podcast earlier this year.
“But we did want to give people the option of opting in to pay for some additional functionality configurability … if they want to.”