How FinTech Apps Make Money From Your Data
Your digital report card is a money-making machine
This is the 340th consecutive post on MrEmogical Notes. If you’ve been following this series and are finding value from this blog/ newsletter, please consider sharing this post with one person who you feel needs to read this for their betterment.
Introduction
Ever wondered how finance apps make money, especially when they seem free to use?
Let’s break it down with a simple insight:
The moment you sign up and link your bank account and tax identity (like your PAN card), you’re handing over a detailed report card of your financial life.
And that’s where the game begins.
Your data is the product
With access to your bank account and spending data, the app can now:
- Track your monthly income and expenses
- Understand how, where, and when you spend
- Identify your financial habits and vulnerabilities
- Monitor your bank balance in real time
This data helps the app predict your future spending behaviour. And the more accurate that prediction, the more profitable it becomes for them.
Smart targeting, big profits
Let’s say you bought a new phone in January 2024.
By the time 15–18 months pass, the app knows you’re due for an upgrade.
What happens next?
- You start seeing discounts on new phones
- Offers are perfectly timed based on your past buying cycle
Also, since the app knows you love bags or shoes, you’ll get customised apparel deals.
But here’s the real twist:
These apps partner with brands and get paid a commission for every referral they send, and since the recommendation feels just right for you, you’re far more likely to buy.
The long game: credit cards and loans
But affiliate offers and product discounts are not the main revenue source, either.
The real money lies in selling you:
- Credit cards
- Personal loans
- Buy-now-pay-later offers
- Insurance products
How do they know when to pitch these?
Because they’ve tracked:
- The day of the month when your account balance runs low
- Your emotional triggers for spending
- The category of items you splurge on
So when they offer a credit card with cashback on your favourite shopping app, or a loan pre-approved during your low-cash period, it’s not a coincidence.
It’s intelligent design powered by your data.
You pay... One way or another
Most users don’t realise that fintech apps lose money onboarding you.
But over time, they earn it back by:
- Showing you the right product at the right time
- Taking a cut every time you transact
- Selling anonymised data for advertising
- Creating personalised offers that feel like they were made just for you
The longer you stay with an app, the deeper their insight into your habits, and the easier it gets to sell you more financial products.
Food for thought
You're not just using a finance app. You're training it.
Every swipe, purchase, balance check, or offer click teaches it something, and behind the scenes, brilliant minds are turning that data into cash, without you ever noticing.
Free isn’t really free, and when it comes to fintech, the product is you.
Follow me on Instagram for more business content
If you enjoy my content here on Substack, I suggest you extend your support by following me on Instagram.
While most of the content on that platform is all about entertainment; I post a lot of educational content about marketing, sales, and business/ professional growth on my Instagram profile.
Not to forget, all the stories that I post give you a glimpse behind the scenes, a sneak peek of what's cooking or what you can expect a few weeks/ months down the road, access to freebies, and a lot more.
Follow me on Instagram and drop me a DM telling me you came to my Insta profile through Substack. I promise you, that will make my day.
Your views?
If you’ve reached till this point of the post, I’m sure you must have some thoughts/ feelings/ opinions about what you’ve just read.
I’m done sharing what’s on my mind, and now is your turn to share your POV.
Tell me how you are processing the information that you’ve just read?
Do you agree with my thoughts?
Do you think I missed something important?
Do you disagree with something in particular?
Let’s continue this conversation (or ask your questions about the post) in the comments below.
Keep Going Keep Growing 🚀
Have I earned your share?
Thank you for reading the full post. Since you read this till the end, it’s safe to assume you found value in the content.
Please consider sharing this post with your audience on social media. You may end up helping someone who’s struggling in their career/ business because they don’t understand the importance of building their personal brand.
I’m sure if you think hard, you will easily come with a few names who you know must read this.
Share this with them, help them, and earn your blessings.
Prompt used to create the image for the note
P.S.: Image made on Meta AI using the prompt, “Create an image of a data engineer of a fintech app in front of multiple screens trying to analyse spending habits of millions of customers”