BudgetWise

Faridha T. De Lima
BSCpE-3A
September 26, 2023

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A. Business Plan:
● Executive Summary:
Budgetwise is an innovative app that seeks to change people's habits
of interaction with finances. Through advanced AI technology, the app
provides personalized budgeting solutions and actionable insights that
improve with every new piece of information about your unique
financial situation. Our mission will be to make money management as
easy, accessible, and intuitive as possible for young adults-typically
those who are young enough but not too young-to manage their
money.

With the features it has-savings encouragement, expense tracking, and

educational content-BudgetWise builds not only financial know-how but
healthy habits of finances. Users will receive personal tips and
reminders that will remind them to be on track with their goals.
BudgetWise will, therefore, empower the user in taking control of his or
her future financial, instilling confidence and informed decision-making
within a frequently uncertain landscape. Budgetwise connects
knowledge and action, opening up the way to a much more secure
financial life.

● Company Description:
BudgetWise is a mobile application to be available on iOS and Android.
It revolutionizes managing personal finance. BudgetWise applies
machine learning algorithms to identify spending patterns, track
expenditures, and even offer personalized recommendations for
managing the budget.
Mission:
To democratize financial management by giving each one advanced
budgeting tools.
Aims:
1. User-friendly design: intuitive navigation should facilitate
effective budgeting.

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 2. Customized insights: customize the budgeting strategy
3. Financial education: provision for financial literacy.
4. Community Engagement: Enables users to interact with each
other and share content.
5. Continuous improvement: Having features updated frequently
based on the opinions from the customers.
● Market Analysis
Industry Overview
- The personal finance application market will grow rapidly with
increasing consumer awareness about financial health. A
Vigorous Market for the Global Fintech Industry with High Shift
towards Mobile Financial Solutions.
Target Market
- The main target groups are millennials and Gen Z, who are
showing interest in mobile solutions and have a greater affinity
to track their independence and savings.
Competitor Analysis
- The competitors in this area include:
1. Mint: Expense tracking and budgeting but lacks advanced AI
personalization.
2. YNAB (You Need a Budget) is based on proactive budgeting,
but it's a bit steeper learning
3. PocketGuard: The interface is much more straightforward, but
there is very little insight given.
Our differentiation will be the AI that includes personalized
insights as well as predictions.

● Organization and Management:

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 CEO: Strategic direction and general management of the company.

CTO (Chief Technology Office): He will look to the technical

development of the application, catering to the process of implementing
AI into it.

Marketing Manager: Prepares the digital marketing strategy that may

also include the strategy of social media campaigns.

Data analyst: works with user data to optimize the AI algorithms and
enhance user experience.

● Products or Services:
The app comes with an AI-powered budgeting system, which
automatically generates budgets for users based on the income and
expenditure history. Savings goals is another tracker where users can
specify targets; this provides tailor-made tips and reminders to achieve
those savings goals. They are educated on their financial health
through the following: reports on expenses and irregular spending
habits, alerts on unusual transactions, and monthly summaries
informing them about their financial health. The user learns financial
literacy through articles, videos, and tips in the application.

● Marketing and Sales Strategy:

Reaching up to the potential users through Google Ads, advertising on
social media further using a strategy like SEO, and we would create
organic traffic by bringing up a blog on budgeting tips and financial
well-being advice.
Authentic reviews and sponsored content will come through
collaborations with finance influencers. Thirdly, we will have a referral
program where users get rewards for inviting friends, thereby extending
the outreach through word-of-mouth marketing and community
engagement.

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 With this strategy, BudgetWise is eyeing the capture of a loyal
customer base in personal finance.

● Financial Projections:

● Appendix:
➢ Market Research: An In-depth Analysis of Trends on Usage and
Consumer Preferences of Personal Finance Apps.
➢ User Personas: Target customer profiles based on demographic
and behavioral data.
➢ Technical Specifications: Overall Architecture of the application
and those of AI algorithms.
References:
● https://bettermoneyhabits.bankofamerica.com/en/saving-budgeti
ng/creating-a-budget
● https://www.moneyhelper.org.uk/en/everyday-money/budgeting/
budget-planner

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B. Business Model Design:
● Value Proposition:
BudgetWise offers its consumers something unique-a friendly design
combined with cutting-edge AI, featuring a powerful, intuitive budgeting
tool. The app provides options for individually tailored budgeting based
on the particular conditions of each person's financial situation.

BudgetWise provides real-time spending advice using the insights

provided by AI, ensuring that users can map out their spending in direct
relationship to the goals they have set for that spending. It also allows
them to set financial objectives and monitor their progression with
dynamic tools that help encourage the motivation needed to keep
moving forward. This means all of their accounts will be brought
together into one comprehensive view where they can make better
decisions on how to better manage their financial health.

BudgetWise transforms the very act of budgeting into an enabling

process, whereby users can make their financial futures clear and
accessible.

● Customer Segments:
➢ Primary: Millennials and Gen Z who are tech-savvy thus spend
time deliberating on what kind of financial management tool
suits their digitally enabled life.
➢ Secondary: Young professionals and families looking at better
financial education and better budgeting with a view to
increasing the quality of their financial planning.

● Key Resources:
➢ Technology: Should be aligned by leading fintech companies for
secure integrations with banking, and the smooth flow of data
serves to satisfy the trust of a user.
➢ Development Team: One needs software developers, data
scientists, and some definite good developers to develop,

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 maintain, and improve features continuously to create a robust
and innovative experience for all its users.

➢ Marketing Expertise: Its distinctive marketing team should have

significant experience in campaigns with the digital arena and
user acquisition strategies to reach its target customers, market
the app to users, and get them involved.

➢ Data Analytics: Having data analytics tools and resources

available would allow analyzing the behavior of its users on a
continuous basis that helps further improve features and
personalize experiences for its users.

➢ Customer Support: For any support issues, the customers

should be heard within no time. This will ensure that people are
heard and feedback is received and used for satisfaction of
customers leading to loyalty and growing the community.

● Revenue Model:
BudgetWise is based on a Premium model where it will provide free
features for mainstream adoption and usage among its users. This is
implemented through the following:

➢ Free: This is the most basic version of the budgeting application

and expense tracking with access to financial insights that all
can bring out the value of the application with no upfront
investment.

➢ Premium Subscription: Monthly or annual subscription fee gives

access to advanced premium features, including an advanced
level of personalized coaching on one's finances, further
strengthened analytics and goal-setting features, and priority
customer support. It would be for the most powerful user who,

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 therefore, would like to make the most out of his or her financial
management.

➢ Partnerships and affiliate marketing: Contacts with financial

institutions and other fintech companies to offer the user base
something that could generate revenue in the form of
commission based on successful partners or clients.
C. Business Model Validation:
● Customer Discovery:
Surveys: Online, dispersed distribution to potential users for
information on demographics, budgeting methods, and what they will
want in the app; help to make an estimation of demand.

Interviews: One-on-one interviews were conducted, which gave insight

into motivations and pain points related to managing money
qualitatively.

Focus Groups: Used targeted segments like millennials and families to

discuss budgeting preferences as well as feature desirability.

Beta Testing: It launched a beta version of the app with early adopters
and gathered real-time feedback about the functionality of the app and
the user's experience of the app.

Market Research: The app went through various stages of market

research by analyzing market data, competitor offerings, comparing
gaps, and associated opportunities.

● Minimum Viable Product (MVP)

Thus, the MVP version of BudgetWise will have the minimum version
of the application that supports core features such as tracking of
expenditure, budget creation, and general monetary insights. It is
user-friendly because it enables users to log their expenses, set
budgets, and see their health at a glance.

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 Testing Process:

➔ User Feedback: Actively collected via in-app prompts and

surveys that depict the user's experience and gather
suggestions on improvement.

➔ A few of the engagement metrics tracked during the MVP phase

were user retention-proportion of users coming back after first
use, usage frequency, and feature engagement-all of which
gave an idea of how well the MVP could serve the needs of the
users.

➔ Iterative Development of the product used by following the

feedback and metrics, refining features, setting priorities for
enhancements, and addressing issues observed so that any
eventual update will meet requirements set by users.

➔ Pilot Test: Conducted on a small number of users for usability

problems and detailed insight before wider rollouts.

● Revenue Stream Testing:

Validation Procedure:
We validated our revenue model by testing these premium subscription
price strategies through these methods:

1. A/B Testing: Through A/B testing, we gave different pricing tiers

with bundles of different features to various segments. This
allowed us to know which bundle attracts more subscribers.

2. Surveys to Users: Conducted surveys to understand the views

of users on price perception, willingness to pay, and the
characteristics of features that they want to be provided. This

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 has given insight into what is most valuable to them in a
premium offering.

3. Engagement Metrics: Checked engagement of free and paid

services, where it actually stops users from coming back and
converting.

4. Trial Offers: Offers a free subscription that is limited-term to

know the users' interest in using paid features after they have
completed the given free trial period.

● Market Fit:
We constantly analyzed customer feedback to validate the market fit.
We do an in-app survey on a regular basis to collect user feedback and
direct interviews on points of pain and feature requests to formulate
qualitative data for improvement. Engagement metrics are monitored:
daily active users, usage frequency of features, retention rates-to see
which features resonate the most with a user.

This insight we have been employing to rate new updates and the
update of the app, so an appropriate feature is available that matches
up with the expectation of users. All trends regarding the industry along
with the competitor's offerings are also abreast with our app so that it
remains current and relevant in the marketplace. Thus, it validated the
very fact that BudgetWise has been effective in meeting our needs in
the target market.

● Scalability:
To determine how BudgetWise can scale and expand, the following
strategic growth plans have been identified.

We will add more functions for integrated feature management, which

will allow users to link with financial institutions. This can help integrate
financial institution syncing in real-time so that users can achieve the

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latest status of finances. This will enhance user experience through
updated financial information and smooth budgeting.

For example, we will use machine learning to develop predictive

analytics for users, thus giving them insights and forecasts about their
spending pattern through the app and thereby increasing engagement
and value.

We will expand to foreign territories: We will open our markets to much

more diverse and wider territory. Regional localization and
understanding the peculiar needs of different regions will work as a
factor that further increases the growth potential.

All this puts BudgetWise in a position for long-term growth and scale
within the competitive fintech landscape.

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