The open banking era: An optimal model for the emergency fund

The COVID-19 outbreak has negatively impacted the income of many bank users. Many users without emergency funds had difficulty coping with this unexpected event and had to use credit or apply to the government for bailout funds. Therefore, it is necessary to develop spending plans and deposit plans based on transaction data of users to assist them in saving sufficient emergency funds to cope with unexpected events. In this paper, an emergency fund model is proposed, and two optimization algorithms are applied to solve the optimal solution of the model. Secondly, an early warning mechanism is proposed, i.e. an unexpected prevention index and a consumption index are proposed to measure the ability of users to cope with unexpected events and the reasonableness of their expenditure respectively, which provides early warning to users. Finally, the model is experimented with real bank users and the performance of the model is analysed. The experiments show that compared to the no-planning scenario, the model helps users to save more emergency funds to cope with unexpected events, furthermore, the proposed model is real-time and sensitive.