A Financial Wellness Score

Concerns about Data Privacy too should be taken care, when the proposed Financial Wellness Score is shared with outsiders.

The proposed Financial Wellness Score is good

The wellness score is overall, summations and averages I guess

Jupiter will know we spent 93rupees on supermarket and 103 on electricity. But, both of these will come under expenses.

I don’t think there’s a data privacy issue if you’re agreeing to the Jupiter T&C

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Co-incidentally we are working on it. Will release soon to this community first

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It need not include be like a credit score, it can be more personal to me.

Based on which I can come to know if I am doing well financially (am I insured, am I doing well on my short term and long term goals).

Few thoughts passing on from the group chat:

  1. Defining financial wellness is important. What is Jupiter’s Idea of financial wellness in today’s time
  2. How do we model it- input factors/data, hypothesis, factor weights, sample data used to determine weights etc
  3. Above concern on data privacy should not be an issue as the user will self input data to check the score ( agree with Vanshika there)
  4. Overall scoring Could look like : (X % of positive financial habits- y% of negative financial habits)/(assets-liabilities) ( still thinking on this)
  5. Identify indicators of positive financial habits and develop as weighted score
    Identify indicators of negative financial habits and develop a weighted score
  6. Factor in time periods for habits ( if possible)- how long did you have that habit( positive or negative)
  7. Would work wonders if the scoring is accurate to a point that govt/other financial agencies can use it (always thinking of ways to expand consumer use case)
  8. The methodology should be such that score should be between 0-100, anything beyond that looks more like a credit score ( again my personal view point to make it distinctive, could be wrong)
  9. Points ponder over: relative scoring versus absolute scoring (Eg: Financial wellness under different market scenarios eg Covid, Demonetization etc versus absolute financial wellness)

Will all of this, Idea is definitely not make it complex but to arrive at a numeric accuracy of wellness one needs to feed in all indicators appropriately.

Will think more on this and get back.

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Agree with the point number 8 here.

But as a user I need to understand that how it was calculated and should be very simple, something like no brainer.

Also I need some actionables to act on or else it just becomes something glorious but of literally no use.

As a user one would only care about the final score and its accuracy of predictability. It is like seeing SpaceX launch astronauts to space over a web-live. Looks all so easy but involves complex systems behind, as since its so robust underneath, looks all the more perfect on the surface. How Jupiter explains the scoring methodology to users in a simplified manner is up to them, but you don’t want an expert look into the scoring and comment was a mediocre model they came up with or find out factors which went missing over an assumption or because one wanted to have a no-brainer score.
Ofcourse, simplicity matters but for the accuracy, one needs to evaluate behavioral factors better and quantify them.

It’s a financial score (a score with which they compare their finances and try to answer if they are doing good or not).

Analogy with space x makes sense on the engineering part of it not the score itself. Imagine cibil score right. That’s pretty complex to even comprehend as it was made in such a manner and it wasn’t built for mass consumption any which case.

I would personally prefer nudging people via visualization than a score.

For example:
https://twitter.com/finshots/status/1236266720156725248
https://twitter.com/finshots/status/1239862940099948544

PS: From the visualization, you can always say that you are always eligible for this much loan for this rate of interest. (Could be similar calculations).

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This is brilliant dhanvi thanks for pointing it out, I couldn’t find any way to use / test it ?

Are they sti in beta ?

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Creating a new topic instead of hijacking this topic here Apps for whole personal financial planning

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Isn’t the whole point of a new age digital bank? I am a developer and good at understanding technology but not good at understanding finances and hoping Juptier/Niyo types bank will help me with reaching my financial goals. And by making me increase my financial score which in turn will make me reach my financial goals seems a simple enough idea if executed well.

Onescore is doing something very similar.

On a monthly basis they refresh your credit score and show you a dashboard of sorts that help you understand what you’re doing well and the kind of weightage it holds (Cred does this too).

For me, it’s been really engaging to see how I was doing last month in comparison to this month. They show you a graph representation to make it simpler and easier to understand.

We could implement something like this too

What one score is trying to do is show me and explain me what makes my credit score.

Credit score != Financial health score.

Financial score is a super set of credit score.

The thing is that banks and nbfc make money from giving out loans. Hence they push, maintain and give a crap about credit score. It only shows if I am giving out my loans and credit on time.

But what about savings, insurance, retirement fund, house emi of mine?

They aren’t covered in a credit score. One score helps me with only credit score nothing more.

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I have 2 concerns:
Would there be any kind of rewards from Jupiter for maintaining a healthy score?
Also, how would unexpected bills (such as medical bills) impact the score?

Will this score somewhat determine my networth as well?

Pertinent questions! As we discuss this, we are collecting all thoughts from user like you as to what will be a parameter of value to form part of the financial score

  1. A healthy score could lead you to avail better banking services, think of how a better credit score leads to a faster/ cheaper loan approavl
  2. Could take both routes, if those were medical bills covered by a health insurance- could add positive points maybe? And why would one be even penalized for an accident? (Could result in unexpected medical bills even)
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