Digit is a saving aid which automatically transfers unnoticeably small amounts of cash you won’t be needing immediately to a separate savings account, helping you save without having to think about. Users are sent daily and weekly balance notifications, and the service is accessible for those who have not yet made the move to smartphones, with their text service.
How they’re disrupting
Digit monitors the level of money in your bank account, your upcoming salary, bills, and how you’ve been spending lately (up to three years previously), then algorithmically calculates the amount of money you won’t be missing, automating the saving process. On average, current users save 5.5% of their income and has saved customers $100M+ since launch. The app is perfect for people saving for a specific goal or purchase that they would typically find it difficult to put money aside for.
21% of Americans have no savings account.
Investments and future
Digit has received a total of $13.8m in equity funding to date, with lead investment from General Catalyst Partners in their Series A in June 2015. The company recently launched a feature designed to automate savings from tax refunds, a significant saving opportunity for many, which it plans to roll out throughout the tax season.