5 Reasons PFM is Still as Relevant As Ever

by Aoife Crean on Mar 22, 2019

Ready for a more-dynamic Personal Financial Management (PFM)?  

With the first digital money management tools created over a decade ago, current offerings have no bearing on the original. As times change and the way we manage our finances follows suit, PFM is the one tool that shifts and molds with its users, adapting to changing needs, new technologies and advances in data analysis and application. 

User experience expectations are high, and for banks aiming to meet their needs and still buck the trend, PFM is as relevant as ever, if not more. More than that, it’s the key to consolidating a relationship with both retail and business customers.

It’s not the same, so can we feasibly say that PFM by any other name would smell as sweet?

Jim Marous of The Financial Brand said of PFM, that “As data-driven money management continues to evolve, we can be fairly certain that integrated data will continue to play a bigger role than it has previously. Whether through APIs or through collaborating in other ways behind the scenes, data-driven money management will blend seamlessly with the user’s overall experience.

“Ironically, it’s by quietly merging behind the scenes with the full experience that what was formerly PFM will be most useful to consumers”.

Today’s digital money management solutions are more mobile, more flexible and proactive than ever in history, now no longer based on historic information and customer data, but on in-depth insights into the user’s bigger financial picture thanks to Artificial Intelligence and a departure from the widget-based, static and limited views of previous versions.

5 Ways PFM is Still as Relevant as Ever

  1. Contextual Offerings

Nothing new here, but it’s always worth reminding ourselves of the importance of being contextual with our offers, notifications and general communication with the customer. This isn’t changing any time soon, as being relevant with our customers is unlikely to go out of fashion, and we're infinitely more capable of being on-point with data insights and AI powering our PFM solutions.

  1. Multi-Channel Banking

Not just Mobile-First, but a People-First approach, meaning we don't require the customer to adapt to the channel, but rather channel to customer.  This makes for truly dynamic PFM, as the user is the one to decide on how, when and where. 

  1. Focused on Open Banking  

It is easier than ever to access external data thanks to Open Banking and the legislation such as PSD2, in place to ensure greater transparency of data, smoother external account aggregation, and a more holistic look at the bigger picture.

Everything in one place, and fewer restrictions equal a more flexible style of banking.  Customers can see all their financial activity across the board on one, clear platform, no longer just from their bank.

  1. Proactive Notifications with Actionable Insights – Offering the Next-Best Action.

Financial wellbeing comes from being able to pre-empt future events and budget for them. Now we’re no longer basing notifications on just the past – we have more vision than before and can allow our customers to act accordingly. They’ll thank you for the chance at a healthier financial life.

Be there before the customer knows they need you, and help them weather the storm, or simply stop it in its tracks.

  1. Consolidate Customer-Bank Relationship

Original money management solutions were focused on the shift to customer-centric banking. Now it's all about the long haul; consolidating the relationship with the customer and building on it, with new and improved additions to PFM - this solution has become the norm, and the basis upon which to offer more, and better services for the future.

We've got a new White Paper on PFM in the works for April- watch this space for more on this topic!

About
Aoife Crean
Aoife Crean

Strands' Content Manager and the voice behind the Strands' brand. Passionate about language and their impact, Aoife Crean writes in her native English, Spanish and Catalan producing whitepapers, blog posts, news items and interviews relating to Fintech and trends in banking.

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