Cleo introduces a new 'AI money coach' designed to assist you in improving your spending habits.

      Cleo, a UK-based fintech known for its AI-driven budgeting app, has unveiled its most sophisticated product to date, named Cleo 3.0. This new version features enhancements such as voice interaction, long-term memory, and better reasoning capabilities.

      Barney Hussey-Yeo, the founder and CEO of Cleo, stated that Cleo 3.0 resembles less of a chatbot and more of a “conversational AI money coach.” Users can now engage in real-time voice discussions with Cleo, which the company claims makes financial assistance feel more intuitive and accessible.

      “Hussey-Yeo, who established the fintech in 2016, noted, “Cleo recalls your objectives, understands your behaviors, and provides personalized financial advice that was once exclusive to the affluent.” By connecting the app to your bank account, Cleo utilizes AI to analyze your spending, income, and habits, offering valuable insights such as how much you can spend this week or identifying areas of overspending.

      The new feature enables users to converse with the assistant in natural language, relying on previous interactions to provide tailored advice. For instance, if you inquire, “Can I afford to go out this weekend?” it will respond based on your current balance and expenses.

      “Cleo 3.0 signifies more than just a product enhancement; it indicates a transformation in our expectations of financial technology,” said Hussey-Yeo. “The AI revolution will not be about who creates the largest models, but rather who uses intelligence to tackle the most challenging human issues.”

      This app is driven by OpenAI’s o3 model and employs chain-of-thought reasoning to simplify complex financial choices. Cleo asserts that its user engagement is 20 times greater than that of conventional banking apps.

      The company anticipates surpassing 1 million paid subscribers this year, with annual recurring revenue (ARR) projected to reach $250 million, marking an 82% increase from 2024. However, Hussey-Yeo mentioned in a LinkedIn post last week that “$500 million ARR is just around the corner.”

      He also hinted at the potential for the company to go public, asking, “So, London or NYC for the IPO?”