Person managing their finances

Saving pennies is for everyone: The shifting landscape of microsavings apps

microsavings by income group
- An active user is defined as someone who has engaged in a transaction through the app within the past 12 months. Indexed to January 2018 which is set to 100.

Shifting trends in microsavings app users

According to Finmasters, while low-income households were the initial target market for most microsavings apps, young people and savvy consumers of all income levels are using microsavings apps to save.

Yodlee data backs that up as Figure 1 shows that microsavings apps were notably more popular among the lowest income group compared to the highest income group until May 2022.

According to Yodlee data, the usage of microsavings apps by different income groups had a shift in May 2022, when the usage by those classified as higher income group (users earning more than $100K per year) surpassed the lower income group (users earning less than $35K per year) in number of users of microsavings apps (see Figure 1). The gap between these groups continued to widen through September 2023.

The data also show that the middle income group (users earning between $35K-$100K per year) continue to be the most active savers on microsavings apps.

Inflation could be a playing a role in the shift seen from lower to higher income users

There could be several reasons why all income groups have increased their usage of microsavings apps.  In terms of the shift, one explanation could be that inflationary pressures have made savings more difficult for the lower income group and more important to the middle and higher income groups.

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About Envestnet | Yodlee Merchant, Retail, Shopper, and Spend Insights

Envestnet | Yodlee Merchant, Retail, Shopper, and Spend Insights utilize de-identified transaction data from a diverse and dynamic set of data from millions of accounts to identify patterns and context to inform spending and income trends. The trends reflect analysis and insights from the Envestnet | Yodlee data analysis team. By combining data with intelligence – connecting vast amounts of actual de-identified shopping data with state-of-the-art analytics and machine learning – Envestnet | Yodlee provides visibility into an entire set of shopping daily purchase behavior including, but not limited to, transactions, customer lifetime values, and merchant/retailer shares.

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