The app is able to forecast bills and set spending limits by connecting to a user’s bank and credit accounts, by applying live feeds to an algorithm.
It can detect looming financial shortfalls, advising people to take steps to minimise the risk of getting into debt, while nudging them to make savings when they are financially healthy.
Pariti plans to introduce users to long-term savings products in the future and does not rule out venturing into financial advice although there are no plans for this in the immediate future.
Founder of the app Matt Ford said the company wants to help people understand and take control of their finances.
The app is intended to help plug the ‘savings gap’, which has been affecting the pensions world, as it is deemed people aren’t saving enough to fund their retirement.
Bridging The Gap
Pariti is awaiting regulatory approval for debt counseling and credit broking and eventually wants to act as an introducer to product providers.
Ford said: “There is a lot of advice out there and some interesting tools but nothing that is bridging that gap.
“We are trying to provide the tools to help people make smarter decisions themselves.
“We are not trying to fill the advice gap but to simply [empower people to make financial decisions]. But we haven’t ruled out to introduce advice in the long term.”
Pariti also wants to introduce a financial passport for clients to share with providers, which will replace “outdated” tools such as credit scoring.
The passport would include the app’s data on consumer behaviour and use this to determine their financial health.
This could help consumers who are struggling with their finances avoid expensive products such as payday loans, and instead get better deals with other credit products, Ford suggested.
Pariti is free to download