Digit launched in 2015 as an SMS chatbot that helps millennials save money by automating the process. It connects to a checking account, analyzes spending habits, and then siphons out small amounts of cash every few days, storing them in a zero-interest savings account (Digit’s founder hopes to eventually offer consumers interest on their accounts). The bot sends texts back to the account holder with updated savings info. Users can text Digit to have money transferred from the Digit savings account to their regular checking account. As of early 2017, Digit had helped its users save more than $350 million since February 2015. Digit competes with a spate of other firms that are trying to automate money management, including Acorns, which takes spare change and puts it in an investment account; Tip Yourself, an app that lets you set aside small amounts of money as a way of rewarding yourself; and Qapital, an automated savings tool akin to if-this-then-that.
This year, Digit evolved from just an SMS chatbot to an iOS and Watch OS app, where users can view their transaction and savings history as well as tweak their settings. Among the several applications occupying this space, Digit appears to be the most popular. It has raised $36.3 million in capital and is processing an average of $20 million a month for its users.