Fintech companies are moving to capture related demand after the Lunar New Year holiday, targeting money flows such as gift money by upgrading budget management functions and presenting small-sum investment products.

Growing demand to review spending after the holiday... competition over household ledger app features

When holiday gifts and gathering costs overlap, many people only later realise how much they spent. As a result, use of household ledger apps is expanding beyond simple payment-history checks to include budget setting and spending analysis.

A leading provider of household ledger features is my-data company Bank Salad. Bank Salad recently revamped Ledger 2.0 to prepare for holiday demand.

It put budget management features front and centre. It shows budget settings on the first screen so users can see at a glance their spending versus the monthly budget and the remaining amount. It converts remaining budget into daily terms and suggests a recommended daily spending amount.

It also strengthened a function that separates fixed and variable spending to show the amount of spending that can actually be adjusted. It displays available budget excluding recurring costs such as rent, maintenance fees and telecommunications bills so users can use it to control spending.

It also manages one-off expenses such as holiday gift spending or gift money in separate categories, enabling year-on-year comparisons.

It provides a classification system with a total of 142 spending categories and added convenience so users can add or delete categories. It also allows analysis of changes from the previous month and comparisons of spending with similar asset and income groups.

The industry sees household ledger apps evolving from simple recording tools into "spending diagnosis platforms" as demand for data-based analysis increases.

More ways to manage gift money... interest in P2P investing

Signs of change are also emerging in how children’s Lunar New Year gift money is managed. Efforts continue to move away from conservative, deposit-focused management and to let children experience financial structures through small-sum diversified investing. There is a trend to use gift money not simply for saving but as a "starting point for financial education".

Against that backdrop, online investment-linked finance (P2P) platform Eight Percent on the 13th suggested using gift money in a "monthly compounding investment structure". The approach is to reinvest monthly interest so users can feel the compounding effect, with the aim of naturally experiencing money flows and the value of time.

Online investment-linked finance is an institutional financial industry registered and managed under the Act on Online Investment-Linked Finance and Protection of Users. But it is an investment product that does not guarantee principal, and there are risks such as delays in borrower repayment or bad loans. Investment funds and company operating funds are kept separately, and investor protection mechanisms such as disclosure obligations and capital requirements are in place, but it is not a safe asset equivalent to deposits.

An online investment-linked finance account for a child can be opened with a guardian's consent. An Eight Percent official recommended, "An approach that manages risk through small-sum diversified investing is encouraged," adding, "It is desirable to strengthen earnings stability by reviewing the maturity of investment products and the size of funds, selecting investment products suitable for the child and diversifying broadly."

The official also said, "Inquiries about investing Lunar New Year gift money tend to increase every year around the holiday," adding, "The Lunar New Year is a time when families gather and talk about the future. As a responsible financial platform, we will contribute to spreading a sound investment culture so a child's gift money can become an experience of growing with time."

A financial industry official said, "The period after the holiday is a time to review spending structures and redesign investment strategies," adding, "It is also a way to manage money to think about both spending control and fund management and try using services that fit you."