Polls show customer demand for PFM tools isn't being fulfilled

During the latest highly successful Digital Banking Club webinar on personal financial management tools we polled attendees on their personal PFM use and how much value they place on the service. The results highlight the level of interest that PFM tools have gained over the last few months and what we can expect to see from the market over the course of the year, writes Billy Bambrough

During the latest highly successful Digital Banking Club webinar on personal financial management tools we polled attendees on their personal PFM use and how much value they place on the service. The results highlight the level of interest that PFM tools have gained over the last few months and what we can expect to see from the market over the course of the year, writes Billy Bambrough

When it comes to personal use of personal financial management (PFM) tools the overwhelming majority of webinar attendees were users in some form, with less than 10% declaring no interest in the service.

Arguably this could reflect the financial status of our webinar attendees who may be using the tools to keep an eye on their stocks and shares, but the results certainly suggest the demand for the everyday PFM tools is out there.

 

What best describes your personal use of Personal Finance Management (PFM) tools?

1

More notably though there were a higher number of respondents that are interested in PFM tools but have failed to sign up than there were of active users. The failure of the market to cater for the needs of this significant group is telling: People want a PFM tool but are not satisfied with options on the market, or are not aware of the services already available.

 

By which mechanism are customers better off accessing Personal Finance Management (PFM) tools?

2

When it comes to the preferred provider of these services there is overwhelming support for the bank including it along with default online banking features. Almost two thirds of the webinar attendees would like to see some kind of PFM tool offered by their bank; making it clear that the third party providers (Mint, Nutmeg, etc.) will have to make the most of their head start on the market.

The digital channel is the best opportunity yet for the financial services industry to become competitive and offer products and services that differ in some way other than price. Tradition lenders need to take note of the customer demand that’s out there and offer it to consumers before they demand it.