September 21, 2019
Brigit uses cash flow data to help users improve financial health
Updated on October 29, 2019
Brigit is an app that builds financial health by offering members budgeting tools, automated alerts, interest-free cash advances, and a centralized view of their money.
It’s timely work. An estimated 100 million Americans live paycheck-to-paycheck; each year, more than 40 million pay an overdraft fee.
The majority need only a small amount of money—about $150—to cover their expenses in the four or five days before the next paycheck. Until recently, there weren’t many ways for them to bridge the gap. If they couldn’t get a loan from family or friends, they often had to turn to costly payday loans or credit card advances.
According to the Consumer Financial Protection Bureau, the average payday loan is $320, but the average interest paid on that loan is $520. (That’s an APR of almost 400%.) Even worse, the average payday borrower takes out 10 loans per year and spends 199 out of 365 days in debt.
Brigit helps its users avoid those fees and stay out of debt, freeing up mental bandwidth to focus on the things they care about. By tracking users’ bank account transactions with Plaid, Brigit lets them know when they have a bill coming up, tells them whether they’ll have enough to cover it, and wires them money if they need it.