LONDON — Newly released research around usage of personal finance apps has found that while only 15.8% of Americans feel financially secure, they are also increasingly turning to digital financial tools and have a “strong appetite” for embedded protection products, with an opportunity for credit unions if they can overcome some linked challenges.
According to Eleos Life, a provider of embedded insurance and the source of the survey and a new white paper titled, “The Future of Personal Finance Apps,” the findings reveal that more than half of Americans now use personal finance apps to manage their money, with 64% expressing interest in accessing insurance products directly through these “trusted platforms,” which the company said presents a “major opportunity for credit unions to diversify revenue while serving members where they already manage their money.”
According to the company, its study examined consumer attitudes toward personal finance apps, embedded financial products, and emerging AI technology across various income brackets and demographics throughout the United States.
Eleos Life said the findings reveal “both critical gaps in financial wellness and significant opportunities for credit unions to diversify revenue streams while better serving member needs.”
Financial Stress Reaches Crisis Levels
According to the company, the survey findings paint a “concerning picture” of American financial wellness.
“Nearly 70% of respondents report actively trying to improve their finances, with those earning less than $40,000 annually facing the greatest challenges,” Eleos Life said. “Only 5.8% of lower-income households express satisfaction with their financial standing, while 21.5% say they feel overwhelmed or lost about their financial future.”
Mobile Apps Dominate Financial Tracking
In what will likely not surprise many in credit unions, the researchers said the survey demonstrates that mobile apps have become the preferred method for financial management, with 55.7% of Americans relying on them rather than traditional spreadsheets, pen and paper, or personal accountants.
Other Findings
The survey found financial engagement levels remain remarkably high across all demographics:
- 87.4% check their finances at least once monthly
- 38.9% monitor finances weekly
- 26% check daily
“When selecting money management apps, users prioritize three key factors: ease of use, cost or pricing structure, and security features. Budgeting tools top the wish list, followed closely by credit score monitoring and unified bank account dashboards,” the company said.
Its analysis added, “With 64% of respondents expressing interest in accessing credit cards, loans, or insurance directly through their personal finance apps, the survey found embedded financial products to be a major opportunity for app providers to expand their offerings and create new revenue streams. Not only is embedded finance a growth opportunity for developers, it’s also provides customers the convenience of having multiple financial tools on the apps they already know and trust.”
AI-Related Findings
The survey found 51.4% of respondents have already sought AI financial advice through tools like ChatGPT, Gemini, or Claude. However, only 25.4% have used AI tools through dedicated personal finance apps, indicating significant untapped potential for app developers.
Additional related findings include:
- 61.1% want AI guidance for insurance decisions
- Users primarily seek help with auto, health, and life insurance
- Despite interest, 73.4% express privacy and security concerns
- 24.7% are less likely to download apps that include AI
Eleos Life said its own research involving its AI assistant, Theea, a pilot test involving 5,000 customers found that of those who used Theea while exploring insurance coverage, they were 2.5 times more likely to enroll in a policy.
The Path Forward
According to Eleos, the survey results suggest that personal finance apps must “evolve beyond basic money tracking to become comprehensive financial wellness platforms.”
The company said success factors include:
- Educational content addressing complex topics like investments, taxes, and insurance
- Embedded financial products that eliminate friction for users
- Transparent AI implementation that addresses privacy concerns
- Personalized guidance that makes users feel they have a personal finance advisor
Implications for Credit Unions
Credit unions face two linked challenges: low engagement with insurance and over-reliance on a few revenue streams, Eleos Life said.
The company said the study shows members already live inside mobile money flows and are open to embedded protection if it’s easy, explained clearly, and offered where it’s relevant.
“That creates a path to member value and non-interest income without adding friction,” the company said.
‘Clarity, Speed & Control’
“Members are telling us exactly what they want: clarity, speed, and control—and benefits that show up today, not just if something goes wrong,” CEO Kiruba Shankar Eswaran said in a statement. “The opportunity for credit unions is to bring protection into digital journeys members already trust, with transparent AI guidance and day-one value.”
The Future of Personal Finance Apps white paper is available here.
