I’m a Banking Expert: How To Use Bank Data To Rein in Your Spending

In a world where most people sign over their personal data to financial apps without first reading the user agreements that govern the transaction, it’s likely that even fewer take the time to understand their bank’s various data-based offerings and how they might use them to their advantage.

Maya Mikhailov is not one of those people. The founder of SAVVI AI , Mikhailov understands data-based banking tools better than just about anybody. After all, she develops the machine-learning technology that brings many of them to life.

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Her platform develops AI products that Fortune 500 financial institutions like Citi and Synchrony integrate into their existing systems to leverage their data for their own benefit and for that of their patrons — and their customers can use much of that same personal and financial information to trim the financial fat in their own lives.

“Bank data can be used to rein in spending in several ways,” said Mikhailov, who outlined the following strategies .

Scan Your Transactions for Recurring Waste

In the increasingly cashless modern economy, people swipe, tap or insert for just about every transaction, from car seats to coffee to carpets. All those credit and debit card purchases make it easy for the ever-growing number of recurring autopay subscriptions to get lost in the shuffle, whether you use them or not.

The good news is that many banks offer data-based tools that let their customers clear out the deadwood without enduring the tedious and painstaking chore of combing through monthly statements to spot unused software and services.

“Some banks offer tools that scan transactions looking for recurring subscriptions that customers may not be aware of or using,” said Mikhailov. “A lot of small spending on unused subscriptions — streaming, food services, mobile apps — can really add up to savings at the end of the year.”

A 2024 Self Financial study found that 85.7% of people have at least one subscription that goes unused each month and that the average value of unused subscriptions is $32.84, up from $25.34 in 2023. That’s about $394 per year.

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Analyze Spending by Category

Most modern bank customers probably have neither the time nor the inclination to regularly scour their transaction history and parse it by spending category to find target areas for reining in excess.

The good news is that most banks store, sort and present that data to any customer who wants to take a deeper dive into their own monthly expenditures.

“Some banks and credit unions offer savings calculators that help their customers plan for events by showing them categories where savings can be had,” said Mikhailov.

You don’t have to do much heavy lifting. Banks present category-based spending data in an easy-to-digest format, like a simple pie chart, that lets customers view and scrutinize changes in monthly spending categories like:

• Groceries
• Dining out
• Entertainment
• Digital media
• Services
• Utilities

Set Spending Limits

Once you identify categories that command too much of your income, you can take the onus of cutting back off of your personal willpower by using your bank’s data offerings to put up monetary guardrails.

“To further control spending, these tools can set spending limits for different categories and customers can receive alerts when they are approaching or exceeding these limits,” said Mikhailov. “An excellent example is eating out. This category usually adds up quickly at the end of the month.”

Get Banks To Analyze Internal Data on Your Behalf

The previous tips involve examining your own financial data that the bank’s algorithms and AI platforms repackage into user-friendly apps and tools — but don’t stop there.

Finance charges are often the most destructive spending category of all because you don’t get anything in exchange for the interest payments you make, and the longer they drag on, the higher they pile up.

Your banking app won’t reveal your third-party debts, the rates you’re paying on them or if it’s possible for you to do better. However, if you approach your bank with your debt information, they can input it into their system and conduct their own data analysis of how your current terms stack up against their potential offerings.

“Finally, banks can help customers identify and perhaps even refinance high-interest-rate debt that they are paying for,” said Mikhailov. “Sometimes customers are paying quite a bit in buy now, pay later or high-interest credit cards that can be consolidated for better rates by working with their banks and credit unions.”

This article originally appeared on GOBankingRates.com : I’m a Banking Expert: How To Use Bank Data To Rein in Your Spending