September 19, 2019 | MATTHEW PHILLIPS
Do you carry your bank around in your pocket? If you’re like 40% of people who have downloaded an online banking app, you have always-on access to financial information and customized features that show you spending habits and track savings. Basically, you’ve got a personal financial manager working for you around the clock, and it’s giving you details you care about.
Consumers care less about single transactions and more about personalized service. And, the latest financial management options are tempting them to try out tools like Banktivity, MoneyDashboard, BankTree and Moneydance. These open-banking solutions draw in data from multiple sources to neatly package information in user-friendly formats.
Basically, consumers can get a holistic financial picture that’s personalized for them. And, what’s more appealing than a financial app that actually “gets” you?
Personal financial management as a service is arguably the new frontier, and one that financial institutions (FIs) are using to elevate the customer experience. FIs have an opportunity to be the go-to for trusted dashboards. They can be one-stop shops for financial information and add value to existing services.
Ultimately, financial management as a service is about getting to know consumers on a personal level, tailoring communications and targeting relevant offerings. And the ROI for FIs that blaze a trail in this new frontier is greater consumer engagement and loyalty.
For FIs to amplify the customer experience and provide the next-level services that modern consumers demand, they must get to know them on a personal level. That means understanding consumers’ behaviors and where they are in life. For example, someone who just bought a home doesn’t want to get notifications about mortgage services. But that consumer very well might be interested in an app that helps them organize home expenses.
Communications must be personalized, useful and contextual. So, a consumer who went on a spending spree might appreciate an update about his or her savings. The mobile app user who just made an ATM deposit would benefit from an informative notification about the bank’s mobile/online deposit feature.
That said, 9 out of 10 banks struggle to deliver on their personalization promises. Digital offerings lure consumers to modern dashboards with relevant features. How is your FI competing with this?
True personal financial management gives FIs opportunities to engage and re-engage with consumers—to impress them and win their loyalty. And given the ease by which consumers can switch banks, FIs must deploy strategies to meet consumers where they are, when and how they want with personalized communications.
Engage and Add Value
Research tells us that 61% of bankers rate a customer-centric business model as “very important.” However, only 17% of FIs are prepared to deliver this type of experience. Is personal financial management as a service the answer? Certainly, it’s not a silver bullet, but it will go a long way to helping FIs stay relevant and maintain customer relationships in today’s highly digital landscape.
FIs that want to engage with consumers in today’s value-added world must constantly evolve their digital strategies to stay on the cutting edge. It’s not just about competing with other financial institutions—but also recognizing that entrepreneurial tech disruptors entering the personal financial management space are enticing bank consumers to engage in their open-banking concepts. FIs that accept the challenge and move to the forefront of designing and offering these tools can be trusted resources for consumers who are looking for a bank that gets them, and gives them what they want.
The onus is on us, as an industry, to “understand what’s possible, where the latest technology innovations are, what systems can deliver them, and what should be pursued,” according to a PwC report.
FIs that embrace digital solutions and can develop financial tools that speak to consumers’ desire for personalized information will stay ahead of the curve. And, there are solutions so FIs are not alone in adopting new technology. Our Vynamic™ Software suite and our services experts can help you make the right decisions about how to chart your technology implementation roadmap effectively and efficiently. Access the latest innovations and deliver personalized, secure consumer experiences. Learn more.