By Carlo Versano
Tally, the app that analyzes users' credit information and then automates the most effective way for them to pay down debt, is setting its sights ー and algorithms ー on savings.
Jason Brown, co-founder and CEO of Tally, told Cheddar that the company has a service in the works that will help users determine a "safe to save" amount of money each month and then automatically set it aside in a savings account.
"Saving money is something everyone knows they should do but it's hard, and it requires sacrifice," Brown said.
Tally was founded on an idea that all financial services can eventually be automated ー "full-service financial automation," as Brown put it. In his view, financial freedom is being able to articulate a goal and an app figures out the best way to get there. Tally took the first step toward that future with its credit service, and its savings product is the next logical step, Brown said. He wouldn't say what the Tally savings account will yield, only that it will be free.
Tally is just one fintech company that is trying to innovate the staid world of personal financial products. The idea for expanding its main service into something that will help people save money without having to think about it was borne by an oft-cited statistic: 40 percent of Americans can't absorb a $400 emergency expense. Brown said Tally will help people build that cash buffer, whether they end up needing it for a rainy day or a vacation or even to help them pay off their credit cards (Tally users who qualify can also tap into Tally's low-APR credit line).
"A lot of people need help setting aside money," Brown said. "It's about turning an objective into a series of jobs that need to be done on your behalf."