A Perfect Storm in the financial services marketplace for a personal financial management (PFM) tool
It certainly feels like a perfect storm is unfolding at the moment that we think provides an opportunity for financial organizations & professionals to provide clients with a personal financial management tool offering a Win/Win benefits.
Personal Financial Management tools offer BIG benefits …
Other financial service providers can benefit as well
An article recently from Finextra notes that the number of banks adopting Personal Financial Management (PFM) tools to their clients has doubled in the last 3 years. Why are banks adopting personal financial management tools and what kind of justifications are there in choosing a particular PFM ? A study of a large number of banks highlighted the following 3 benefits for offering personal financial management tools to clients:
Banks want to defend their market position. Banks see PFM as a tool to differentiate their brand & create a new valuable service for their customers
Banks want to increase customer satisfaction, to create loyalty and retention-Banks see the convenience, control & simplicity & organization that benefits their customers. PFM can help customers succeed in achieving their goals (that’s good for everyone)
Banks see PFM as a strategic tool for revenue generation-PFM creates cross-and-up-sell opportunities and provides the marketing staff with better insight into customer needs
The author of the study sums up PFM as being a lucrative revenue generator.. We agree. But it’s a Win/Win offering with a lot to offer users & providers.
Read more from the Finextra article by Artak Vardanyan of Misys here
LegacyTracker helps consumers and clients simplify, safeguard & share their important financial/legal and estate information & documents. LegacyTracker helps provide a 360 degree view of finances with reminders & alerts for what needs to be worked on next. In this way, LegacyTracker is a personal financial management tool & can deliver the benefits noted in the article (plus some others).
PFM Offerings should not just be exclusive to Banks
The benefits of offering a PFM to clients or account holders is not restricted to banks. Wealth Management firms, Credit Unions, Asset managers, Professional service providers like lawyers/Accountants or Estate executors or Member Based organizations have much to gain when clients are better organized, less stressed and more engaged with their financial/estate information.
Personal Finance Management Tools (PFM) can help users do a lot of things these days like budget, visualize their spending or cash flow, aggregate multiple accounts, receive bill reminders and generally help them engage in more proactive financial planning.
A US BankChoice survey from May of this year as reported by The Financial Brand indicates that currently 32% of those surveyed use a PFMservice or software for budgeting & financial planning but 23% are relying on a 3rd party tool like Mint.com or Quicken to help them. With only 9% using a PFM tool provided from their bank or credit union,,,that means that there’s a BIG gapin the market as 36% of the women surveyed & 31% of the men surveyed in the same study, want their institution to provide those PFMtools.
Again…we suggest, it’s notabout the free WiFi or cappuccino in the branch anymore or the free toaster or tablet that may come with opening a new account.
Life is BUSY. Give the “People” what they want.
Consumers want tools to simplify their lives.
Consumers need insight into their own information and help managing their multiple To Do’s when it comes to financial & estate planning.
Consumers want to make more informed decisions on spending, saving, borrowing and investing.
The majority of financial service clients are looking to their financial service provider to show more value and to demonstrate Customer Advocacy (show that they care about them and not just the bottom line). We think that adds up fairly nicely to the WHY behind providing a PFMtool to clients (and prospective clients).
LegacyTrackeris a PFMtool that can help your clients simplify, safeguard, share their important financial, legal and estate information while tracking their financial progress along the way. Better Organized Clients are Better Clients.