The big banks have no interest in serving the middle class, according to the founder of US startup Digit.
Digit’s platform, which launched its service in the US this week, is an automated savings account that monitors spending habits and automatically begins putting a few dollars away when it thinks its users won’t miss them.
Founder Ethan Bloch told The Verge because the banks make most of their money from high-income and low-income customers, the retail banking experience for the middle class hasn’t changed for many years.
When users sign up to Digit they are given a savings account, which is insured by the Federal Deposit Insurance Corporation. Once it’s linked to its user’s everyday bank account, the Digit account observes spending patterns and squirrels a few dollars away here and there. The service is free although no interest is earned on the savings account. It doesn’t cost anything to move money between accounts, which can be done by text message.
There’s no word on if or when the service will be available in Australia, but Digit does have “hopes” to expand internationally in the future.