| breakeven | This calculation is a function of the Predicted Saving Ability as a percentage of net_income, multiplied by 100, and then added to a baseline factor of 80. A SPENDiD Score of 80 indicates the user is predicted to "breakeven" on average for any given period. The further the SPENDiD Score is below (or above) 80 is an indicator of the relative stress (or ease) that the Account Holder is likely to experience in their effort to grow savings and/or reduce debt. This proprietary metric is ideal as an alternative data point for financial institutions or lenders in their evaluation of the user's relative cash flow strength, and to assist the FI toward the creation of a more personalized financial journey for each customer. |
| saving | Intended as a potential metric for the user or their financial advisor for "what-if" scenario modeling, this calculation uses the same inputs detailed for the SPENDiD Score, but goes a step further by taking into account the user's specifically stated periodic savings amount. For example, a user may wish to save a specific amount each month and create a budget adapted to achieve that savings goal amount. SPENDiD offers the SAVINGS Score as an assessment of the probable financial stress of adherence to this adapted budget. To do this, SPENDiD treats the difference between the user's stated periodic savings amount and their SPENDiD-generated Predicted Saving Ability as an added expense (assuming their stated savings amount is higher than the Predicted Saving Ability Amount). SPENDiD returns a fully categorized budget that achieves the user's stated periodic saving amount, plus an instant calculation of the SAViNGS Score. Again, the higher the SAViNGS Score, the less financial stress the user is likely to experience while working to achieve their targeted periodic savings goal amount. |
| lending | The user's SPENDiD Score can be "contextualized" for easy use by a financial institution (FI) based on the relative $ amount of the discretionary cash excess or (shortfall) of that particular customer/account holder vs their peers. For example, a +9.1 SPENDiD Score for an account holder earning $58,000 does not offer the same potential profit adding value to the FI as someone with a +9.1 SPENDiD Score earning $150,000, so a different way of ranking these two account holders by the FI is required. The result is a LENDiNG Score which represents the apparent relative monthly excess or (shortfall) in dollars of the user's discretionary or “non-fixed” cash vs their peers. This relative value (or risk) of each account makes prioritization of targeted marketing outreach or risk assessment much simpler and more profitably focused for the FI. Knowing as many account holders’ LENDiNG Scores in simple dollar terms means a SPENDiD partner can better target the right products and services to the right customers. |
