A Complete Guide to Build an AI Budget App Like Cleo

Last Updated on January 23, 2025

Managing personal finances can feel overwhelming, but modern technology is here to help. With growing responsibilities and financial complexities, people are turning to smarter tools to make money management easier. AI-powered budget apps like Cleo have become incredibly popular for their ability to simplify finances while keeping things fun and engaging.

Cleo makes budgeting a breeze with features like spending analysis, cash advances, and personalized financial tips. Its conversational AI and user-friendly design have made it a go-to app for Gen Z and millennials. The global fintech market is currently valued at $209.7 billion and is expected to exceed $644 billion by 2029, highlighting the perfect opportunity to build an AI app that stands out with innovative AI solutions for smarter financial management.

Building an AI budget app like Cleo involves understanding its features, business model, and development process. This guide will walk you through everything you need to know to bring your idea to life.

Overview of the Cleo App

Cleo has earned its place in the personal finance ecosystem as the “Siri of personal finance.” This AI-enabled money management app is designed to simplify financial tasks while making the process engaging and interactive. Cleo provides a suite of tools that address various aspects of personal finance, from budgeting and expense tracking to cash advances and credit building. Its conversational chatbot and intuitive design have made it a favorite among younger demographics. By October 2023, Cleo had amassed over seven million users, primarily in the U.S., further solidifying its position as a leading tool for personal financial management.

Features and Services of Cleo

Personal Financial Management Services

Cleo integrates seamlessly with users’ bank accounts, offering an analytical approach to personal finance. It categorizes expenses, identifies spending patterns, and provides actionable insights to help users optimize their budgets. By tracking and analyzing financial habits, Cleo offers personalized advice to improve users’ financial health. This level of detailed financial tracking and advice has led to an increasing demand for personal finance mobile apps. In fact, the global market for paid personal finance apps is projected to grow at a compound annual growth rate (CAGR) of 15.7%, reaching a market value of US$ 6.71 billion by 2034.

As more users seek financial empowerment and control over their money, apps like Cleo are poised to lead the charge in meeting this growing need. For those looking to create a Cleo-like app, integrating artificial intelligence (AI) for personalized financial guidance and insights is essential.

Interactive Chatbot

At the heart of Cleo is its AI-powered chatbot, which creates a human-like interaction for users. Whether you need help setting up a budget, monitoring expenses, or understanding financial concepts, Cleo’s conversational interface makes the experience feel less like a chore and more like chatting with a tech-savvy friend. The chatbot also adds a touch of humor and relatability, which enhances user engagement. Developing an AI budget app like Cleo means leveraging chatbot technology to provide users with financial guidance and a user-friendly experience.

Cash Advances

Cleo provides users with quick and easy access to cash advances of up to $100. This feature is particularly appealing for those who need short-term financial support. Users can select a repayment date ranging from three to 14 days after borrowing, offering flexibility while avoiding the complexities of traditional payday loans.

Budget Management

Cleo’s budgeting tools are designed to prevent financial mishaps like overdrafts. The app sends timely alerts about upcoming bills and recurring expenses, helping users stay on track with their financial commitments. It also allows users to set spending limits and track their progress in real-time. 34% of Cleo users set up a budget in the last year, and the app has helped users avoid declined transactions or overdrafting nearly two million times in 2023. This functionality is crucial for anyone looking to build an AI budget app like Cleo, which empowers users to control and manage their finances effectively.

Credit Builder Services

For users looking to improve their credit scores, Cleo offers the Cleo Builder subscription. Priced at $14.99 per month, this plan includes access to a secured Credit Builder card. Users can use this card to build a positive credit history while earning cashback rewards. This feature is ideal for individuals new to credit or looking to repair their scores.

Digital Wallet

The Cleo Wallet adds an extra layer of convenience, enabling users to securely store and manage their funds within the app. This digital wallet serves as a central hub for financial transactions, offering seamless integration with Cleo’s other features.

Business Model

Cleo operates on a freemium model, combining free and subscription-based services. This strategy ensures accessibility while offering value-added features for paying customers.

• Free Plan: Includes core financial management tools, such as expense tracking, budgeting insights, and interactive chatbot services.

• Cleo Plus: Priced at $5.99 per month, this plan unlocks additional features like cash advances and enhanced financial insights.

• Cleo Builder: Available for $14.99 per month, this premium plan provides credit-building services, including access to the secured Credit Builder card and cashback rewards.

This tiered model allows users to choose services based on their financial needs and goals, making Cleo an adaptable solution for a wide range of users.

Target Audience

Cleo primarily targets Gen Z and millennials, a demographic known for seeking innovative and tech-driven solutions to simplify financial management. The app’s intuitive design and conversational AI appeal to these younger users, many of whom prefer interactive and engaging platforms over traditional banking tools. Key features such as savings challenges, goal-setting tools, and real-time expense tracking are especially appealing to individuals who are new to managing their finances or looking for ways to enhance their financial literacy. Cleo’s ability to combine humor, relatability, and actionable insights makes it a favorite among those seeking a less intimidating approach to personal finance. By creating an AI budget app like Cleo, developers can tap into this growing market, offering a modern and engaging financial solution.

Steps to Build an App Like Cleo

Building an app like Cleo requires a strategic approach, blending technology, user-centric design, and robust security. Below is a comprehensive guide to help you develop a successful personal finance app that rivals Cleo in functionality and user experience.

Market Research and Competitor Analysis

Market research lays the groundwork for your app’s development. By understanding user needs and analyzing competitors, you can identify gaps in the market.

• Study the Audience: Define your target audience based on factors like age, income level, and financial habits. For instance, Cleo targets millennials and Gen Z with a conversational and gamified approach to finance.

• Analyze Competitors: Examine apps like Cleo, Digit, and Albert to identify their strengths, weaknesses, and unique features. Take note of user feedback to understand what users appreciate and what they find frustrating.

• Highlight Pain Points: Look for common challenges users face with existing apps, such as lack of personalization, confusing interfaces, or limited features. Address these in your app.

• Understand Regulatory Requirements: Financial apps must comply with regulations like GDPR, CCPA, and PSD2. Understanding these laws early can help you design compliant systems from the start.

Define Core Features

The success of your app hinges on offering features that provide tangible value to users.

• Budget Tracking and Categorization: Include tools to categorize spending automatically, giving users a clear picture of where their money goes.

• AI-Powered Insights: Use AI to provide personalized financial advice, spending patterns, and savings opportunities.

• Interactive Chatbot: Develop a chatbot that simplifies finance with conversational interactions, mimicking Cleo’s humorous and approachable tone.

• Cash Advance Functionality: Help users tackle unexpected expenses with small, short-term loans, including transparent terms and repayment options.

• Credit Score Monitoring: Integrate with credit agencies to provide real-time credit score updates and tips for improvement.

Additional Features to Stand Out:

• Bill reminders and payment tracking.

• Gamification elements to make saving fun.

• Community forums or social sharing options for financial tips.

Choose a Development Platform

Selecting the right platform affects development time, cost, and user experience.

• Native Development: Build separate apps for iOS and Android to optimize performance and fully leverage each platform’s capabilities. Ideal for apps with complex features like AI-powered chatbots.

• Cross-Platform Development: Use frameworks like Flutter or React Native to develop a single app that works on both platforms, saving time and cost. This approach is best if you’re launching on a limited budget.

• Progressive Web Apps (PWAs): A PWA can be a cost-effective alternative, offering app-like experiences on mobile browsers.

Also Read: Optimization Tips for AI Models 

Design a User-Friendly Interface

A clean and intuitive interface ensures users can navigate the app with ease.

• Simplify Navigation: Use straightforward menus and logical layouts. Avoid overloading users with information on a single screen.

• Conversational Design: Create a chatbot interface that mimics natural conversations. Use friendly language and emojis (as Cleo does) to make interactions less formal.

• Visual Appeal: Incorporate charts, graphs, and progress trackers to make financial data visually engaging. For example, use pie charts for spending categories or bar graphs for savings progress.

• Accessibility: Ensure the app is accessible to users with disabilities by following WCAG guidelines.

Develop AI Capabilities

AI is the backbone of apps like Cleo, enabling personalized insights and interactions.

• Natural Language Processing (NLP): Use frameworks like Dialogflow or Rasa to train your chatbot to understand user queries and respond conversationally.

• Predictive Analytics: Implement AI models to analyze user data and provide forecasts, such as predicting when a user might overspend or suggesting optimal savings amounts.

• Machine Learning (ML): Leverage ML algorithms to continually improve the chatbot’s responses and the app’s financial advice based on user behavior.

Ensure Data Security

Financial apps handle sensitive user data, making security a top priority.

• Encryption: Use end-to-end encryption (e.g., AES-256) to protect user data during storage and transmission.

• Authentication: Implement secure login methods like two-factor authentication (2FA) or biometric verification (e.g., fingerprint or facial recognition).

• Compliance: Adhere to data privacy regulations like GDPR in Europe and CCPA in California. Also, ensure compliance with PCI DSS for secure payment processing.

• Fraud Prevention: Integrate tools to detect and prevent fraudulent activities, such as unusual spending patterns or unauthorized logins.

Integrate Third-Party APIs

Third-party APIs can significantly enhance your app’s functionality without requiring extensive development from scratch.

• Banking APIs: Use APIs like Plaid or Yodlee for account synchronization, enabling users to connect their bank accounts securely.

• Payment Gateways: Integrate gateways like Stripe or PayPal to process transactions seamlessly.

• Chatbot APIs: Employ tools like Twilio or IBM Watson for natural and responsive chatbot interactions.

• Financial Data APIs: Use APIs for credit score updates or real-time financial data.

Test and Launch

Testing is essential to ensure your app delivers a flawless user experience.

• Functional Testing: Verify that all features, from budget tracking to chatbot interactions, work as intended.

• Usability Testing: Test the app with real users to gather feedback on navigation, design, and functionality.

• Security Testing: Conduct penetration testing and vulnerability assessments to ensure the app is secure against cyberattacks.

• Beta Launch: Release the app to a small group of users for final testing before the official launch. Use their feedback to make improvements.

Must-Have Features for an App Like Cleo

When building a financial management app like Cleo, it’s important to incorporate key features that will help users manage their finances effortlessly while also providing them with value and a positive user experience. The following are 10 essential features that will make your app competitive and engaging, ensuring its success in a crowded market.

AI-Powered Chatbot

An AI-powered chatbot serves as the backbone of a personalized user experience in apps like Cleo. The chatbot can engage users in a conversational way, offering tailored financial advice and support. It can respond to queries about budgeting, saving, and spending and even provide personalized financial tips based on the user’s financial history.

• Why it matters: The conversational nature makes the app feel less like a tool and more like a helpful financial advisor, which encourages users to engage with it frequently.

• Key features to include: Voice interaction, real-time advice, humor to increase user engagement, and integration with other services for seamless communication.

Also Read: AI Agents VS Chatbot

Spending Analysis

One of the most valuable features is the ability to analyze spending patterns. By connecting the app to users’ bank accounts, credit cards, and other financial accounts, the app can automatically track income and expenses.

• Why it matters: Understanding spending habits is crucial for effective money management. Offering insights into where and how users are spending allows them to identify unnecessary expenses and improve their budgeting.

• Key features to include: Visual reports (e.g., pie charts, bar graphs), suggestions for reducing spending, categorization of expenses (e.g., food, entertainment), and trend analysis over time.

Budget Creation

Budget creation is a fundamental feature that enables users to plan their finances efficiently. The app should allow users to set personalized budgets for categories such as groceries, rent, and entertainment, then track their progress in real time.

• Why it matters: A well-organized budget allows users to control their finances better, ensuring they don’t overspend. This feature gives users a sense of control and can be motivating when they see they are hitting their budget targets.

• Key features to include: Dynamic budget adjustments (e.g., based on income fluctuations), automated tracking, monthly/weekly budget reviews, and alerts for budget overruns.

Cash Advances

Offering small, short-term loans, also known as cash advances, can be a game-changer in financial apps. These loans help users cover urgent expenses like medical bills or car repairs when they’re short on cash.

• Why it matters: Many users face unexpected expenses and need quick financial assistance. By providing this option, you create a sense of financial security for users.

• Key features to include: Clear loan terms and repayment schedules, automatic approval based on the user’s financial standing, and easy application process.

Credit Score Monitoring

Credit scores play a key role in users’ ability to access loans, credit cards, and other financial products. Providing a feature that allows users to monitor their credit score regularly can be extremely valuable.

• Why it matters: Users want to stay on top of their credit health, and tracking their credit score in real time can help them take steps to improve it.

• Key features to include: Regular credit score updates, alerts for significant changes, personalized tips on improving the score, and easy access to reports.

Savings Goals

Enabling users to set and track savings goals within the app helps them stay motivated and focused on their financial objectives. Whether saving for a vacation, a new car, or an emergency fund, users should be able to define their savings goals and track their progress.

• Why it matters: Setting goals is a key aspect of financial planning, and providing users with the tools to track their progress increases their likelihood of reaching those goals.

• Key features to include: Automated savings plans, progress bars to show how close users are to their goals, and notifications to keep users motivated.

Expense Categorization

Automatically categorizing transactions is a must-have feature for any financial app. By categorizing expenses, users can gain a clear view of where their money is going and identify areas to cut back on.

• Why it matters: Categorization saves users time and effort. Instead of manually tagging every purchase, the app can do the heavy lifting, providing users with automatic updates to their financial picture.

• Key features to include: Real-time categorization, ability to modify categories, personalized suggestions based on spending patterns, and a “smart” categorization system that learns user habits over time.

Multi-Platform Support

Your app should be available on both Android and iOS to reach a broad audience. Ensuring a consistent experience across platforms is vital for user satisfaction.

• Why it matters: Offering multi-platform support ensures you don’t alienate users who prefer a specific operating system, and it helps expand the app’s reach.

• Key features to include: Seamless data synchronization across devices, optimized UI for each platform, and consistent functionality on mobile and tablet devices.

Also Read: Cost to build an AI Fitness Like Fitbod

Why Invest in a Money Management App Like Cleo?

The demand for AI-driven personal finance apps is soaring, offering a lucrative business opportunity for entrepreneurs. Here’s why investing in a money management app like Cleo can be a smart decision:

1. Growing User Base
   As more individuals seek digital solutions for managing their finances, apps like Cleo appeal particularly to millennials and Gen Z, who value convenience, personalization, and gamification.
2. Revenue Potential
   A well-designed app can generate revenue through premium subscriptions, in-app purchases, referral programs, and partnerships with financial institutions.
3. Scalability
   An app like Cleo is inherently scalable. As user adoption grows, you can expand its capabilities by adding new features or entering new markets.
4. Alignment with Market Trends
   With advancements in artificial intelligence and increasing smartphone usage, the market for AI-powered budgeting apps is expected to grow exponentially. Entrepreneurs investing in such apps are well-positioned to capitalize on this trend.

In summary, building an app like Cleo requires a tailored approach to budgeting, with costs determined by the desired complexity and features. However, the potential returns on investment, driven by the rising demand for personal finance solutions, make it a promising business venture.

Build a Cleo-Like App with Oyelabs

At Oyelabs, we excel in developing innovative financial apps like Cleo, combining cutting-edge AI technology, intuitive user interfaces, and robust security to deliver exceptional user experiences. With proven expertise in AI app development, we offer fully customizable solutions tailored to your unique needs, whether you aim to build a simple budgeting tool or a comprehensive financial management platform. Our end-to-end services cover every stage, from ideation and development to a successful launch.

By leveraging our expertise in AI and machine learning, we ensure your app stands out with advanced features and seamless functionality. Partner with Oyelabs to transform your vision into a reality. Reach out to us today, and let’s create a groundbreaking financial app together!

Conclusion

Creating an AI-powered budget app like Cleo requires a keen understanding of user preferences, advanced AI implementation, and a meticulous development process. With the increasing demand for innovative financial management solutions, building such an app offers immense business potential. A well-designed app not only helps users manage their finances effectively but also positions your brand as a leader in the fintech space. By collaborating with experts like Oyelabs, you can turn your vision into reality.

Our expertise in AI, fintech, and user-centric design ensures a cutting-edge app that delivers value to users and achieves your business goals. Let Oyelabs help you launch a successful, innovative financial management platform that stands out in the competitive market.