PERSONAL FINANCE MANAGEMENT: How banks should use personalized services to increase customer satisfaction and compete with fintechs
- The ability to conduct banking activities via a sleek mobile app is no longer enough to satisfy consumers - it's table stakes.
- Banks need to focus on deploying robust personal finance management (PFM) features that pull consumers in.
- There are three common approaches banks can take to effectively implement these tools.
It's no longer enough for banks to offer customers a sleek mobile banking app; in fact, they expect it.
And with emerging fintechs continuously creeping in on incumbents' marketshare, legacy banks must work to provide additional tools that will keep users engaged in-app - and prevent their eyes from wandering to startup solutions.
The best opportunity banks have to do this is by introducing personal finance management (PFM) features to their existing offerings. These features empower customers to take more control over their financial lives by tracking spending, managing investments, and maintaining greater visibility into their overall financial health.
Fintech startups have already refined many of these technologies and, in turn, pressured traditional banks to achieve feature parity or lose customers. Personal Finance Management, a new research report Business Insider Intelligence, Business Insider's premium research service, has outlined the best ways for banks to catch up to the competition.
Here are three approaches banks can take to implementing PFM tools:
- Partnering with a PFM-focused fintech: This can save the partnering banks critical time by bypassing building features themselves - enabling a quicker go-to-market strategy. However, banks must be prepared to forego the ability to implement more customized services.
- Working with a PFM technology supplier: B2B suppliers like Meniga and Personetics, on the other hand, can help banks overhaul their existing mobile apps with specially designed features. They provide the enabling infrastructure banks need to successfully offer PFM features to their customers.
- Acquiring a PFM startup: Although often more expensive, this option grants banks the ability to acquire valuable talent, as well as complete control over their integrations.
Want to learn more?
This is just a preview of Personal Finance Management, a new report from Business Insider Intelligence, Business Insider's premium research service. The full report breaks down the different approaches banks can take to offer their customers better PFM features as competition from fintechs increases.
In full, the report provides insights into the benefits and challenges of each approach, how the industry may change in the future, and which PFM features will soon become table stakes for consumers.