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(Image: http://media3.picsearch.com/is?BGEQlX8rjV2jbEL-sh-tTWRGVk6or8I2pU_REM2MY8I&height=231)Business Insider Intelligence
This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here. Current subscribers can read the report here.
The ability to conduct banking activities via a sleek mobile app is no longer enough to satisfy consumers — it's table stakes. To differentiate, banks now need to work to provide additional tools that keep users engaged in-app and enable them to better manage their financial lives.
Yet it seems that many are coming up short in providing these solutions — 31% of US consumers aren't managing their finances, according to a report from Israel-based technology supplier Personetics seen by Business Insider Intelligence. This indicates that banks need to put more effort into deploying robust personal finance management (PFM) features that pull consumers in.
PFM tools used to focus mainly on tracking spending, but they now extend to helping people manage their overall financial health, investments, and savings. However, one of the main issues with PFM is that it doesn't bring in direct revenue, and it's been overlooked by many for decades as a result. Instead, banks tend to focus on how to increase uptake of revenue-generating products like mortgages. But, with customer-centric fintechs pushing PFM tools to the fore, incumbents are starting to wake up to the value of these offerings.
In this report, Business Insider Intelligence analyzes the different approaches banks can take to offer their customers better PFM features as competition from fintechs increases. We also explain the benefits and potential challenges related to each approach. Additionally, we provide insights into how the industry may change in the future, what banks can do to stay on top of developments, and which PFM features are becoming table stakes.
Here are some of the key takeaways from the report:
To differentiate from the competition, banks need to focus on deploying robust PFM features that pull consumers in.
Consumer demand interior house painting color ideas for PFM will only increase as more fintechs offer such tools.
There are three common approaches banks can take to effectively implement PFM tools — partnering with a PFM-focused fintech, working with a PFM technology supplier, or acquiring a PFM startup.
Banks need to choose a strategy now that will enable them to stay on top of the PFM trend in the future. In full, the report:
Outlines how PFM is changing the way banks can engage with customers.
Details the different approaches banks can take to offer more PFM features.
Discusses which approaches are best suited for smaller and larger banks.
Highlights that banks need to stay ahead of new technologies to ensure that they're offering the best features to their customers. Get The Personal Finance Management Report
