Budget Compass: technology-based, behaviour-oriented support offering in the budgeting field

Description

More and more middle-class individuals and households in Switzerland are falling into financially precarious situations. According to recent surveys (e.g., GFS, BIS, Pro Familia), financial concerns are among the population’s greatest worries. As a result, increasing numbers of people are turning to the members of the Budgetberatung Schweiz umbrella organisation for help. Over the past 12 months, usage of their website and tools has risen by 30% (860,000 page views, 150,000 tool users). Local counselling centres support around 8,000 households and in some cases have already had to introduce waiting lists.

Budget counselling helps households create a budget—but implementation in daily life often fails. Counselling centres lack the resources and scalable tools needed to guide clients through this crucial phase.

This is where the idea of the BUDGET Compass comes in: a mobile application that supports people both in developing a budget and in applying it in everyday life. Through targeted, evidence-based interventions, it promotes sustainable behavioural change, helping users make the most of limited financial resources and stabilise their financial situation.

The Budget Compass offers adaptive, personalised guidance toward achieving a household’s budget goals. It analyses individual spending patterns and delivers tailored interventions that help users adjust their behaviour sustainably and remain stable even with limited financial means. The solution is being developed with a strong focus on accessibility and data protection.

People with tight financial resources have different motivations, questions, and available courses of action compared to financially secure households. In addition, the psychological strain caused by financial scarcity is higher and reduces decision-making capacity. The Budget Compass offers low-threshold support for individuals in this situation.

The preliminary study lays the foundation for a technology-based, behaviour-oriented support offering in the budgeting field. The project is strategically relevant, as it expands our expertise in financial education and counselling for individuals and households in difficult situations with a scalable, digital intervention solution. We expect the following benefits:

• Target-group-specific insights and intervention logic: Analysis of motivational and implementation barriers related to budgeting and debt issues in order to develop tailored interventions. Testing and evaluating different mechanisms to achieve strong, evidence-based impact.
• Prototype setup and implementation risks: Development of requirements for a digital prototype that incorporates effective intervention mechanisms, is fully accessible, and uses problem-specific AI-based methods and technologies. Identification of potential risks (especially regarding the maturity of speech-to-text, AI models, and data protection) to prevent misdevelopment.
• Scalability, market positioning, partnerships: Assessment of the intervention’s potential impact on clients’ behaviour change, improvement of their financial situation, and optimisation of counselling processes within budget advisory services. Differentiation from existing solutions to establish a clear market position and evaluate market opportunities. Collaboration with regional budget counselling centres, social services, non-profit organisations, and financial institutions to increase reach and credibility.
• Social and economic benefits: Financially precarious situations often lead to stress and health issues (e.g., Hämmig O, Herzig J 2022). Supporting individuals and households in stabilising their financial situation contributes to reducing the burden on the population and on public support systems.
• The results of the preliminary study will form the basis for an Innosuisse project.

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