Blog

Know where you stand today, so you're financially prepared for tomorrow

Introducing Frollo Score

What is Frollo Score?

At Frollo, we’re passionate about finding innovative ways to leverage our technology and community to help users get ahead with their finances.

Our research revealed that while our users love and value the Frollo experience, they wanted something even simpler.  They wanted an easy way to track and improve their overall financial wellbeing.

So, two years ago, we started working on the Frollo Score – a simple number which shows you where you stand today, so you’re financially prepared for tomorrow!

What’s New?

We’ve been working hard at improving our Frollo Score calculation and the way we present it to users.  After our Beta release we received some great feedback from Our Community – and we’ve made many changes that we are very excited about, including:

  • More detail on how your score is calculated,
  • In-app support for Frollo Score – including helpful nudges on the next step you can take to improve your score.

How is Frollo Score calculated?

The score is based on your income, expenses, savings, debts (if you have any) and your future goals.  The more engaged you are with Frollo and your finances, the higher your score.  Unlike other metrics, our score doesn’t just look to your past, but uses predictive analytics to look to the future to truly ensure you’re making the right decisions.

Along the way we listen to you about what your short- and long-term financial goals are and how you are feeling about your finances.

We calculate your Frollo score by building it up in five parts, starting with a measure of your financial stability.  You can read about all the components of Frollo score below.

Part 1 – Do you spend less than you earn?

Managing your money well means spending less than your income. This builds financial resilience and helps you deal with unexpected events.

To calculate a measure for Part 1, we’ve taken a three-month average view of your income, and compared this with your expenses over the same period.

Part 2 – Can you repay your debts?

Controlling your debt means you’re able to pay what you owe, without being plagued by late fees or sinking into more serious financial difficulty.

We’ve taken a look at your current personal debt (including credit cards and personal loans), then compared this figure with your income over the past three months.

Your personal score is an easy ratio of these two figures.  To ensure greater accuracy, we’ve distributed your score amongst those from the Frollo user community.

Part 3 – Create a ‘safety net’ of savings

Saving money brings you peace of mind, helping you deal with life’s sudden and unexpected expenses.

We’ve taken a look at your current savings (taken from your accounts under the ‘Saving’ header in Frollo), and compared this with your income for the past three months.

Your personal score is an easy ratio of these two figures.  It shows how long your savings would last for if you did not receive any income at all.

To ensure accuracy, we’ve distributed your score amongst those from the Frollo user community.

Part 4 – Treat yourself occasionally

Managing your finances shouldn’t mean restricting yourself to the point where you’re not able to enjoy life.  In fact, staying in control of your money means giving yourself the freedom to treat yourself every now and then!

We’ve analysed your lifestyle expenses, and compared this with your average income over three months.

Your personal score indicates the extent to which your income can cover those occasional treats.

Part 5 – Set a financial goal for your future

Setting a strong financial goal shows that you are committed to providing for your future, as well as helping you develop good spending and saving habits over time.

You will need to define a goal to set for yourself, in order for Frollo to calculate a score.  Think about what you would like to achieve in future – whether that’s buying a car, saving for your retirement, or putting down roots in your own home.

TAGS:
Share:
0 comments on Introducing Frollo Score

Post a comment

Your e-mail address will not be published.