49% of digital banking customers want PFM with account aggregation. They also expressed their desire to access deeper insights and get more guidance on their daily finances.
Based on an online sample of 3,000 customers in August 2012, Javellin (@JavelinStrategy) estimated that 21% (49.3 million adult users) of the consumers in the US mix and match PFM software, while only 8% (18.9 million US adults) use bank or credit union PFM to date.
PFM or personal finance management is not just banking transactions alone. It also appeals to a larger audience seeking help with daily financial tasks and decision-making through the mobile channel. According to survey, the importance of all PFM-like features that consumers want is increasing.
Such features could help financial institutions retain customer relationships. Although 59% of consumers use PFM tools from their credit union or primary bank, the figure dropped when Javellin segmented the respondents. Only about 40% of adults aging 25 to 34 and Moneyhawks expressed the same preference.
In rolling out such features, Mark Schwanhausser urges banks to renounce from marketing the tools through a holistic lens.
- 49% of digital banking customers want a feature that allows them pull information from all accounts into one place
- 21% or 49.3 million adult users mix and match PFM software, while 8% or 18.9 million use bank or credit union PFM to date
- 59% of consumers use PFM tools from primary bank or credit union, which dropped into 40% when segmented to customers ageing 25 to 34 and Moneyhawks.
Mark Schwanhausser, Director of Multichannel Financial Services at Javellin Strategy & Research: “The PFM of 1980 is not the PFM of 2013 and beyond. The old definition won’t give [banks] the acceptance that they want. If you stick to an idea that PFM is a Quicken-like tool or bury [PFM] in a tab online, count the 12 people using it.”
Covered by my Visible Banking Team
Personal financial management has shifted focus. With mobile banking, social media and big data, there are a lot of ways to integrate PFM features. What key feature would urge you to use your bank’s PFM service to keep track of your finances on daily basis?