Although there are some mainstays, such as the need for financing important purchases like cars and homes, personal finance trends are changing rapidly these days. Iliya Yordanov, the CEO of MoneyWiz, kindly spoke with us about the current trends in the world of personal finance, why people should feel secure with online banking, and things you need to consider when organizing your financial matters.
Can you tell us a bit about your journey to where you currently are professionally with MoneyWiz?
I and the other co-founders started MoneyWiz five years ago. At the time, we wanted to simply provide finance software that would be fully functional on iOS and Mac and sync automatically. There was nothing like it at the time. That was before the word “cloud” even got popular. We were the first personal finance software with our own cloud sync system.
Through years of evolution and innovation (we were also the first and currently only finance app to offer worldwide online banking), I can gladly say that today, MoneyWiz is a very successful finance software in over 25 countries worldwide.
Why should people feel secure with online banking?
MoneyWiz never stores online banking credentials. Those are stored with our partners. We currently partner with two companies – Yodlee and SaltEdge – which are both great companies that exceed industry standards when it comes to security and handling personal data.
Does MoneyWiz offer solutions to help customers prepare to finance a car?
Yes and no. MoneyWiz is not tailored for any specific finance needs, such as financing a car or a mortgage for example. Instead, MoneyWiz provides the tools to use it for your own needs. It’s easy to organize all financial matters regarding financing a car within MoneyWiz.
What trends have you noticed lately in the world of personal finance?
Most notably, two trends come to mind:
1. More and more people turn to automatic transaction downloads. While I personally understand why it happens (after all, it’s easier), it might also be a red flag indicating that people are less involved in their daily expenses and rely more on reports. While this can be seen as a good indicator in terms of spending capabilities, it can also lead to overspending if one is not careful.
2. A very notable trend we’ve observed was the overall usage and interest in personal finance software. During the years after the economic crisis that started in 2008, personal finance was at a peak. Last year, it was at a low; and this year, it’s picking up again. We actually conducted an analysis on this data and compared public information about online searches and reported sales; and we found out that there is a pattern that shows that economic instability leads to more people using personal finance software (to get out of debt, to control spending, etc) and vice versa.
Do you think the way that people handle their personal finances is changing?
I think the tools are changing, but the core essence of how people do it hasn’t changed. The tools available to people today make it easier, that’s for sure. At the end of the day, though, it all comes down to figuring out a way to earn more than you spend.
What are your plans for the future of MoneyWiz?
We’re currently focused on releasing MoneyWiz 2 for Windows Desktop later this year. That will complete our portfolio on all major platforms – iOS, Mac, Android and Windows. Once that’s done, we’ll focus heavily on introducing new tools and features. We’re also working on a new product that will work very closely with MoneyWiz to provide the kind of financial insight to people that we’re in a position to offer. Most individuals alone would have no access to that kind of financial know-how.
Follow Iliya on Twitter.