The ability to perform usual banking from a modern and usable app is no longer simply something that increases the satisfaction of customers of a bank, but has become the key that makes a user choose one entity or another.
Banks should focus on the implementation of personal finance management (PFM) functions that attract consumers.
There are three common approaches that banks can adopt to effectively implement these tools.
Banks vs Fintechs
It is no longer enough for banks to offer customers an elegant, fast and simple to use mobile banking application; in fact, they expect it. They demand it, almost.
And with the new fintechs gaining more market share every day, traditional banks must work to provide additional tools that maintain the engagement of their users and prevent their gaze from being diverted to these new startups.
The best way for banks to avoid losing market share is to add personal finance management (PFM) features to their existing offerings. These functionalities allow clients to take more control over their finances by tracking expenses, managing investments and maintaining greater visibility of their overall financial health.
Who gets the prize?
Fintech startups have already refined many of these technologies and, in turn, have pushed traditional banks to match their characteristics or otherwise risk losing customers. The Personal Finance Management report of Business Insider Intelligence, the premium research service of Business Insider, explains the measures that banks should implement to catch up with their new competition.
These are three of the approaches that banks can adopt to implement personal finance management tools:
Partnering
Partnering with a fintech focused on PFM: can save banks a critical time by not having to build tools from scratch, which allows launching the product before the market. However, this strategy can hinder the launch of more personalized products by relying on existing tools.
Work with a PFM technology provider
B2B providers, such as Meniga and Personetics, can help banks review their existing mobile applications with features designed specifically for them. They provide the necessary infrastructure for banks to successfully offer financial management functions to their clients.
Acquiring a startup focused on PFM
Although it is the most expensive option, it also gives banks the ability to acquire valuable talent for the future, as well as full control over their integrations and a great capacity for personalization.