Original text here from Patrice Bernard (LinkedIn)
Firmly established in its somewhat ambiguous position at the crossroads between its historical activity of split payments and its initiatives to promote healthy personal finance management, Klarna offers its customers, in this latter domain, the opportunity to review their 2023 purchases to aim for improvement in 2024.
The process begins by presenting each user with some standout information about the past 12 months, as gleaned from their individual use of the app and the startup's card, or their use of financing solutions offered by partner merchants: major expenses, favorite categories, and peak spending periods. This operation, now in its second iteration, distinctly reminds one of Monzo’s “Wrapped” campaign… minus the controversy (probably due to a more neutral tone).
Through this "Money Story", which serves as a striking and accessible sample, Klarna claims to foster awareness among its users about the importance of budget management. With this aim, the analysis includes personalized prompts to regularly monitor accounts and set control goals (especially in areas prone to excess), leveraging the dedicated tools provided on its platform.
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Unfortunately, the system does not avoid the classic pitfall of the genre: the assistance offered remains entirely passive, with no logic of concrete and contextual recommendations considered beyond observing money movements. Once convinced of the importance of paying attention to one's financial daily life, individuals are left to their own devices when it comes to taking action. Even more problematic is the promotion of sales or price comparisons, presented as a means of cost control, which simultaneously tempts users into overspending.
Naturally, one should not be naive. While Klarna's attempt to clear its conscience—or more likely, to defend its intentions to regulators—is certainly positive, it is not and will never be a benchmark in enhancing its customers' financial well-being, fundamentally incompatible with its business model (whether it's credit or m-commerce, in this case). Sadly, the same seems true for most financial institutions, which would otherwise be the most credible in such an approach. Unless they reconsider their understanding of value creation in their industry, which might tempt mutual institutions...
