FinTech Glossary

What Is Financial Needs Analysis

Financial Needs Analysis (FNA) is a structured process used to assess an individual’s or organisation’s financial situation, goals, risks, and obligations. It helps identify gaps between current resources and future financial needs, enabling informed planning and decision-making.

Purpose of Financial Needs Analysis

The main purpose of an FNA is to understand what financial outcomes are required and what resources are available to achieve them.

By analysing income, expenses, assets, liabilities, and future goals, an FNA provides a clear picture of financial priorities and potential shortfalls.

Financial Needs Analysis is commonly used in financial planning, insurance assessment, investment planning, and risk management.

What It Covers

An FNA typically evaluates:

• Income sources and stability
• Regular and discretionary expenses
• Assets such as savings, investments, and property
• Liabilities, including loans and obligations
• Short-term and long-term financial goals
• Risk exposure and protection needs
• Cash flow patterns and savings capacity

The depth of analysis may vary depending on the purpose and complexity of the situation.