Summit is a financial app that sends users friendly, contextually appropriate messages inviting them to send a little extra money from their checking account to the card they want to pay off, making paying off debt a daily activity just like spending.
Our value promise
We will reduce anxiety caused by debt in young adults, and empower them to achieve a better financial future.
Debt can be intensely anxiety provoking and yet we saw over and over again in our research that although the young people we spoke with recognize that their financial situation is causing them stress, and could be detrimental to their future, they continue to struggle to change their day to day spending behaviors enough to pay down their debt. Why is it so difficult for people to change their behavior when it comes to money? Why aren’t all of the myriad of existing tools addressing this problem?
Over the last six months, through a dozen in-depth interviews, intercepts and prototype testing, we’ve gained a deeper understanding of how young adults think about their finances, how they feel about their debt, and how they manage their current financial situation.
Through our research two things became very clear:
- There is no satisfaction in future benefits. We need to feel immediate value to be satisfied.
- We want to make good decisions but fear sacrificing more than necessary.
“I hate budgeting, it’s really hard reigning myself in and keeping myself on track… In the moment of choosing to buy something, it’s really easy to make that decision–yeah fuck it, I don’t care–I want this now…” – Carl, 24.
We found that people will make a budget or a plan at the beginning of the month — often using budgeting apps like Mint — in order to get their spending under control, but once they are confronted with daily spending decisions like whether to eat out for lunch or go out with friends, their budget goes out the window. There is a huge opportunity to create a solution that bridges this gap between long term goals and day-to-day spending.
How it works
Summit Gets Personal
Summit leverages individual’s spending habits in order to choose the best times to send personally relevant messages inviting them to put money towards their debt.
Summit Reduces Anxiety
Looking at a large credit card balance can be overwhelming. That’s why Summit breaks down the user’s long term goal of paying down your debt into small manageable chunks, all while helping decrease the amount of time they’ll be paying their debt.
Summit promises its users to reduce the anxiety caused by credit card debt and empower them to change their behavior and achieve a better financial future, but what is it like to use day after day? In order to find out, we ran a small pilot using existing technologies to test Summit’s core interaction: sending users daily messages that allow them to put money towards their debt.
We piloted with 7 individuals over 4 weeks and sent a total of 124 messages– paying an extra $388 over people’s minimum payments.
Before our pilot, we calculated how long it would take each of our participants to pay off their credit cards and how much interested they would end up paying based on their current monthly payments. At the conclusion of our pilot we ran the numbers again to see what effect, if any, our service had, and what effect it would have if they continued at this new rate.
The results were exciting: not only did everyone pay more than their minimum payment this month, but if they were to continue to use Summit, on average they would pay off their debt over 2 years earlier and save over $800!
Beyond saving our users money and years of indebtedness, we also strive to help users change their spending behaviors so they eventually won’t need our service. After our pilot we spoke to all of our participants and asked them if using our service had changed the way they spent money that month.
One of our participants, Jacob, told us about a message he received just before lunch one day. He had brought his lunch to work that day — something he had been trying to do more often to save money — but that morning his friends decided they were going to go out for lunch and invited Jordan along. Even though he had packed a lunch he decided he was going to leave it in the fridge and go with them. As lunch time, approached he received a message from Summit asking him to put $7 towards his credit card debt which he accepted. As he put that money towards his debt, he decided to keep the positive momentum going and eat the lunch he brought.
This is the behavior change Summit seeks to bolster. Keeping long term goals top of mind and creating a cycle of small successes that helps people create their own positive financial future.