Digital evolution changing patterns of managing personal finances

Gulf Today, Staff Reporter

Savings are essential; however, research shows that most people don’t save sufficiently. If you have a decent amount of money, experts say you should save at least 20% of your monthly paycheck, no matter what.

The 50/30/20 rule is a way of budgeting that divides up your money into three categories: needs (50%), wants (30%) and savings (20%). Some people love this way of managing their money, but saving patterns are changing, given the digital evolution.

This has led to the creation of SAV, a financial technology application. The inspiration to launch SAV came from observing the common financial challenges expats face in the UAE.

In addition, SAV focuses on promoting financial literacy in the UAE. To that end, they are a part of the Mohammed Bin Rashid Innovation Fund's (MBRIF) Innovation Accelerator programme, which aims to promote innovation and improve quality of life. This is very much in line with the UAE government’s vision.

Many arrive with expectations of tax-free salaries and a luxurious lifestyle, only to find themselves struggling to manage their finances amid the glitz and glamour of the country. Money is very personal; it means different things to different people.

These observations highlighted the need for a tool that could help people manage their money more effectively. SAV is designed to fill this gap by assisting users in understanding their spending habits, setting financial goals, and saving money intelligently using technology. It aims to transform the traditional approach to personal finance, making it more aligned with the lifestyles and needs of modern expatriates in the UAE.

“We believe financial literacy goes beyond charts and graphs. Our users must grasp how to set aside funds for future goals, grow their wealth, and manage debts without undue stress. Our commitment to financial literacy is deep-rooted and multifaceted. We provide intuitive segments within the SAV app where users can analyse their spending behaviours and learn best financial practices,” said Purvi Munot – Founder and CEO of SAV.

Particularly noteworthy is SAV’s 'Women and Money' initiative. They launched this after noticing that less than 15% of the users were women, despite their significant influence over family spending and financial decisions.

This initiative aims to empower women with tools that resonate with their lifestyles and help them take control of their finances. It includes unscripted conversations about money, encouraging women to build their financial narratives and gain confidence in managing their finances. These efforts are supported by a mix of blog posts, community events, and upcoming podcasts, all designed to foster a supportive learning environment for our users.

SAV is designed with several key features to address the unique financial challenges and needs of UAE users. These features focus on enhancing daily financial management and long-term financial planning. Sav's key features streamline financial management for UAE users. The app offers insights into spending patterns by connecting multiple bank accounts, providing a clear picture of monthly expenses. Additionally, users can set and track short-term and long-term financial goals, with automated savings making goal achievement more manageable.

“At SAV, we understand that not everyone wants to buy on credit. That’s why we’ve introduced our innovative ‘Save Now, Buy Later’ (SNBL) feature. With SNBL, you can create goals for your aspirational purchases and save towards them instead of buying on credit. The interesting part is that our partner stores will also contribute to your savings. This means you’ll end up paying 5-25% less than the original cost! It’s a fun and easy way to manage your budget and avoid the high costs that come with credit cards,” added Purvi Munot.

Another innovative feature SAV offers is the ‘Save as You Spend’ mechanism. Each time you make a purchase, a small percentage of the amount spent is automatically saved. This feature effortlessly builds up savings while you go about your daily spending.

SAV places the utmost priority on the security of its users' financial information, particularly in the highly connected UAE market. We implement stringent measures to ensure your peace of mind. The app doesn’t hold user funds directly, minimizing risk and restricting access to sensitive information. We adhere to strict guidelines from financial service partners and regulatory bodies, further enhancing your trust and confidence in us.

As part of its involvement in the Google for Startups Growth Academy: Women in AI program, it is leveraging AI to transform the fragmented experience of managing personal finances in the UAE.