Budge was born from a desire to support busy millennials who do not have access to traditional financial planning advice. Industry standards typically require a minimum threshold of $100k in investable assets to qualify, which exclude 76% of Americans aged 24-41.
Budge offers an alternative solution to help users relieve financial stress. Budge’s platform provides tailored recommendations and action steps that can be completed in the app to help users accelerate debt elimination, build short term savings, and plan for the future based on their current financial standing.
Through Method, Budge has been able to securely and seamlessly connect its users’ debt accounts into their personalized dashboard within the Budge app.
Other finance management applications have been able to consolidate users’ account information by collecting all their credentials. But with Method, Budge was able to onboard users’ real-time balance and APR data with only their consent.
Method’s payment rails enables users to take action to pay down debt from within the app. This action-oriented debt ecosystem has never been possible before and distinguishes Budge from other personal finance management applications.
- Yan Avery, Co-Founder & CTO of Budge
Budge’s objective was to enable customers to see all of their liabilities and set up tailored debt payoff strategies from within a single location, increasing the probability of achieving their financial goals.
Budge’s pilot project sought to validate product market fit among a limited number of users. Budge’s solution is tailored to millennials with $10K+ in personal debt, $5K or less in savings, and $100K+ in annual income. Budge best supports individuals with earnings above their basic cost of living, but who need personalized support to attain financial health.
Budge uniquely weaves scalable coaching advice with prompts that make it more likely that users automate debt avalanches and fund short term savings. It proposes tailored solutions, such as automatic paycheck withdrawals to help customers reduce debt quickly in a structured and organized way. In-app payment capabilities are designed to enable Budge users to take action to pay down their debts in a few clicks.
Method met with Budge and laid out a plan of API enablement that would power their desired solutions and get them to market in a matter of weeks. Method’s Liabilities Data Connect API delivers the real-time, consolidated view of all debt for users using only their PII and consent, while the Liabilities Payment API enables electronic payment to more than 15k financial institutions.
Benefits for Budge Users
Partnering with Method unlocked a number of benefits for Budge and its users:
- Comprehensive account view across a user’s liability stack with Budge’s personalized insights
- Real-time liability data, including APR, so users can roll balances from higher APR debt to lower APR debt faster
- Seamless onboarding experience without the hassle of connecting multiple financial institutions or aggregators to link their accounts
- In-app payment issuance to increase the likelihood that users take steps toward financial health and to deliver real-time delight by removing payment friction
- Streamlined KYC operations to prevent fraud and ensure data security
Method was able to provide the frictionless onboarding, account linking and entire money movement process via a single API. By keeping Budge out of the flow of funds, Budge was able to focus on other areas of product development, rather than spending months on costly bank compliance and set up.
At this early stage of Budge’s journey, Method enabled Budge to complete its initial pilot project and validate its offering. This pilot was a clear success with high NPS, user satisfaction, and product market fit.
In a very short amount of time, Budge onboarded hundreds of users, linked thousands of liability accounts, reached an overall NPS score of 84, a technology satisfaction rate of 8.6 (out of 10), engaged with its users at an average of 2.6 ongoing transactions per customer per month and gained over $15M of total debts under advisement.
Thanks to Budge I’ve reduced my credit card debt by $6k and put away an additional $8k in savings within 3 months. All without any changes to my current cash flow
- Josh, Budge user
Budge is currently expanding its prototype to enable wider adoption of its debt solution among millennials beyond its initial group of pilot users.
Budge is an affordable direct-to-consumer subscription based money program that helps aspiring millennials eliminate debt, build emergency savings and plan for the future. Budge allows its users to connect with coaches through office hours, live presentations, community and chat, as well as execute against their financial plan in minutes, and move on.
About Method Financial
Method Financial empowers real-time data and payment access for consumer liabilities. Using a consumer’s PII, Method can securely connect all of a user’s liabilities, retrieve comprehensive data, and enable payment access. Method’s industry-backed network allows lenders, fintechs, and financial institutions to build personalized lending and financial management experiences supported by comprehensive real-time credit data, evergreen connections and integrated payment rails. Method powers access to liabilities held at over 15,000+ FIs in the US, covering 95% of all outstanding consumer debt.