Cheddar has added a spend tracker tool to its finance app to help users gain insights into their spending habits.

The FinTech said the free tool offers 98 per cent accuracy when separating spending into categories, which means users spend less time making manual adjustments and increases their control over spending.

Cheddar claims that other apps have poor categorisation accuracy, with many transactions falling into “general” or “other.”

According to a survey from KPMG, 58 per cent of people plan to reduce their non-essential spending to better manage their finances. Cheddar said that this underlines the need for a clear overview of finances to enable people to better manage their money.

The app is directly authorised and regulated by the Financial Conduct Authority (FCA).

The app utilises Open Banking to hold both account information and payment initiation permissions, which Cheddar said enhances functionality for users and reduces costs by creating and owning the technology that powers the app, rather than paying third parties.

"Understanding where your money goes is crucial in managing your finances effectively," says Tariq Zaid, chief executive and co-founder of Cheddar. "With our spend tracker, users can finally trust that their transactions are accurately categorised, providing a comprehensive view of their financial health."

---