Syndicated Sample Report
Personal Finance Management (Part 1): What Consumers Really Want from PFM
Audience: Financial institutions: E‐commerce, online‐ and mobile‐banking and marketing strategists, payments processors and billers, credit and debit issuers Vendors: Online‐banking platform providers, online‐banking vendors, online‐banking marketing Others: Personal finance websites
Authors: Mark Schwanhausser, Senior Analyst, Multichannel Financial Services John Kenderski, Research Associate
Contributors: Mary Monahan, Managing Partner and Research Director Beth Robertson, CCM, Director of Payments Research James Van Dyke, President and Founder
►39 pages ►23 charts/graphs
Although the recent “Great Recession” has caused millions of Americans to tighten their belts financially, nearly one out of five consumers are financial sleepwalkers who do not monitor or manage their personal finances — more than double the rate in 2009. This response to financial stress is natural, but it reinforces the need for the financial services industry and technology vendors to develop online and mobile personal finance management (PFM) tools that can give Americans a sense of financial control and restore consumer confidence. Javelin identified and analyzed four types of money managers based on the way they monitor and manage their finances: paper‐and‐pen managers; online balance‐checkers ; desktop‐PFM users who use software like Intuit’s Quicken and Microsoft Excel; and web‐PFM users who use PFM tools at a bank, credit union or a personal finance website like Mint. So far, adoption of Web‐PFM has been limited, but that will change if financial institutions and technology vendors deliver PFM tools that 1) redefine online banking by installing PFM at the heart of the user experience; 2) consolidate all of a customer’s accounts, including those held at outside financial institutions; 3) serve up real‐time data; 4) automatically categorize spending and saving data; and 5) exploit the power of PFM on mobile devices.
Which consumers are hungriest for PFM tools?
What are the building blocks for constructing market‐ leading PFM capabilities?
How important is it for banks and credit unions to present a financial snapshot that includes data for accounts held at outside financial institutions?
Are consumers willing to provide login credentials and passwords in order to see all their financial accounts in one place?
Do consumers trust banks more than they trust personal finance websites to keep their login credentials safe?
What is the return on investment (ROI) from PFM?
What are specific ways that PFM tools can enhance revenue opportunities, lower operating costs or reduce identity‐fraud losses?
Why is PFM critical to a financial institution’s mobile‐ banking and payments strategy?