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TRADITIONALTRADITIONAL
PFM IS DEADPFM IS DEAD
Welcome to the New World of
Digital Money Management
You’ve seen theYou’ve seen the
money that financialmoney that financial
institutions areinstitutions are
investing in digi...
Bank of America CEO
said they spend $500
million per year on their mobile
online platform and will continue to
invest at t...
You know what’sYou know what’s
happening in Siliconhappening in Silicon
Valley and LondonValley and London
right now.right...
“Global fintech investment
jumped
.”
- CB INSIGHTS & ACCENTURE
201% between 2013
and 2014
And you know thatAnd you know that
banking models arebanking models are
fundamentallyfundamentally
changing.changing.
“By 2020, more than 30 percent
of banking revenues could be at
risk due to new competitors
and trends.”
- ACCENTURE
Financial institutionsFinancial institutions
need to get ahead ofneed to get ahead of
these changes bythese changes by
emp...
“We need to reimagine how banks can
truly enrich customers’ lives.”
- BRADLEY LEIMER, HEAD OF INNOVATION, SANTANDER BANK U...
Banks and creditBanks and credit
unions are recognizingunions are recognizing
the importancethe importance
of financialof ...
On a macro level, America
needs help.
Total student loan debt is now worth
over $1 trillion
Healthcare costs are soaring
6...
Americans are trying toAmericans are trying to
manage their finances,manage their finances,
but they're not usingbut they'...
82% of consumers keep track of
their finances in some way, but
over half do it through pen and
paper (36%) or in their head...
Financial institutionsFinancial institutions
need to be at the heartneed to be at the heart
of helping consumersof helping...
This is the futureThis is the future
banking model!banking model!
“If you provide account holders with
insight, recommendations, and
advice, you build trust.”
-MARK SCHWANHAUSSER, DIRECTOR...
Some financialSome financial
institutions say, “butinstitutions say, “but
we’ve tried PFM!”we’ve tried PFM!”
Traditional PFM hasn’t
been effective because the
experience is broken.
Here’s why…
First of all,First of all,
traditional PFM hastraditional PFM has
been hidden away,been hidden away,
deep into a tab.deep ...
Secondly, it reliesSecondly, it relies
on single-sourceon single-source
aggregation.aggregation.
This means that if the single
connection to the data provider
breaks, the account holder must
wait days, weeks, or even mo...
Third, data isThird, data is
ineffectively cleansed.ineffectively cleansed.
Most transaction feeds
typically consist of a messy
string of random-looking
characters:
COSTCxx 04ROCHESTER
XXX726 XXX-XXX-1189 XXX027
What is an account holder
supposed to do with that mess?
Fourth,Fourth,
transactions aretransactions are
ineffectivelyineffectively
categorized.categorized.
If you’ve ever used standard PFM
solutions on the web, you know the
pain of poor categorization.
Here is how two well known
traditional PFM providers perform:
Fifth, the user hasFifth, the user has
to do too muchto do too much
work themselves.work themselves.
If users have to set their own
budget amounts or do multiple
calculations to see how their
finances are tracking for the
mo...
“For the most part, a person’s
objective in decision making is to
arrive at the best possible decision
outcome with the le...
Lastly, PFM has failedLastly, PFM has failed
because of unimaginativebecause of unimaginative
user experience.user experie...
“Most financial service UIs are based on
an accounting paradigm, which is not
surprising since that is how we are all
train...
So how is digitalSo how is digital
money managementmoney management
(DMM) different?(DMM) different?
“Over time, we believe money
management will become not
just a feature of digital banking
but digital banking itself.”
-FO...
According to Mapa research, many
PFM solutions globally are similar.
In the examples that stood out,
what was most distinc...
With us so far? ;) Here’sWith us so far? ;) Here’s
what account holderswhat account holders
are looking for in DMM.are loo...
A simple, personal and
convenient experience
that is secure and works
A way to monitor all
accounts in one place
Anywhere, anytime access
View-it-and-do-it functionality
Predictive and advice-driven data
DMM best practice #1:DMM best practice #1:
A simple, personalA simple, personal
and convenientand convenient
experience th...
“Our emphasis has been rethinking
financial service UIs to accommodate
new paradigms that are eerily
familiar. These paradi...
DMM best practice #2:DMM best practice #2:
A way to monitor allA way to monitor all
accounts in one placeaccounts in one p...
Celent Research found that 75
percent of account holders said
that the ability to view all their
finances in one place was ...
DMM best practice #3:DMM best practice #3:
Anywhere, anytimeAnywhere, anytime
accessaccess
With smartphones enabling
on-the-go services,
consumers have an always-
on mentality.
DMM best practice #4:DMM best practice #4:
View-it-and-do-itView-it-and-do-it
functionalityfunctionality
Consumers want clear, concise
insights where they can see how
their finances are tracking and then
easily be able to take a...
-RICK CLAYPOOLE, DIRECTOR, RETAIL PRODUCT
MANAGEMENT AND MARKETING AT CADENCE BANK
"It has to be a very elegant solution
t...
DMM best practice #5:DMM best practice #5:
Shift from historical toShift from historical to
predictive and advice-predicti...
“Banks traditionally provide historic
data, such as last month’s bank
statement. We on the other hand will
use forward-loo...
Now that you know whatNow that you know what
a great DMM experiencea great DMM experience
looks like, it’s time tolooks li...
4 steps to DMM success:
Tighter integration
Ongoing staff training
Continuous feedback
Better marketing and education
DMM success tip #1:DMM success tip #1:
Tighter integration ofTighter integration of
DMM into homepageDMM into homepage
and...
MACU Case Study:
40% adoption: After switching from PFM to
DMM, adoption skyrocketed.
2x external accounts added daily: On...
DMM success tip #2:DMM success tip #2:
Better marketingBetter marketing
and educationand education
“The marketing materials were
crucial in making Clarity [the name
they gave their DMM white-label
product] part of our bra...
Created an advertising campaign through
various marketing channels, including in the
sidebar next to the customers' transa...
Integrated the product into online banking,
making the enrollment process easy
Helped users auto-populate their budgets
Cr...
DMM success tip #3:DMM success tip #3:
Ongoing staff trainingOngoing staff training
“The most effective training inspires
employees to use the money
management solution for themselves.”
-ERIN CALDWELL, TRAIN...
DMM success tip #4:DMM success tip #4:
Continuous feedbackContinuous feedback
“Société Générale in France ... not only solicits ideas
from customers but also asks for their feedback on
new development...
And finally… howAnd finally… how
successful hassuccessful has
DMM been?DMM been?
Check out the andMACU case study here
the...
Empowering your account holders' financial
lives through digital money management
Learn more at MX.com
Share
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
Traditional PFM Is Dead. Welcome to the New World of Digital Money Management
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Traditional PFM Is Dead. Welcome to the New World of Digital Money Management

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There is a fundamental shift occurring due to digital disruption in the financial services industry. Large banks are spending upwards of $500 million a year on mobile alone, global fintech investment grew 201% between 2013 and 2014 and up to half of the world’s banks will disappear through the cracks caused by digital.

Accenture believes with all of these changes, combined with deleveraging and squeezed margins, 30 percent of traditional banking revenues will be at risk by 2020. Now the only way for financial institutions to grow is to increase share of wallet by providing extraordinary value to customers and beating the competition.

Publié dans : Économie & finance
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Traditional PFM Is Dead. Welcome to the New World of Digital Money Management

  1. 1. TRADITIONALTRADITIONAL PFM IS DEADPFM IS DEAD Welcome to the New World of Digital Money Management
  2. 2. You’ve seen theYou’ve seen the money that financialmoney that financial institutions areinstitutions are investing in digital.investing in digital.
  3. 3. Bank of America CEO said they spend $500 million per year on their mobile online platform and will continue to invest at that rate. Brian Moynihan
  4. 4. You know what’sYou know what’s happening in Siliconhappening in Silicon Valley and LondonValley and London right now.right now.
  5. 5. “Global fintech investment jumped .” - CB INSIGHTS & ACCENTURE 201% between 2013 and 2014
  6. 6. And you know thatAnd you know that banking models arebanking models are fundamentallyfundamentally changing.changing.
  7. 7. “By 2020, more than 30 percent of banking revenues could be at risk due to new competitors and trends.” - ACCENTURE
  8. 8. Financial institutionsFinancial institutions need to get ahead ofneed to get ahead of these changes bythese changes by empowering theirempowering their account holders.account holders.
  9. 9. “We need to reimagine how banks can truly enrich customers’ lives.” - BRADLEY LEIMER, HEAD OF INNOVATION, SANTANDER BANK U.S.
  10. 10. Banks and creditBanks and credit unions are recognizingunions are recognizing the importancethe importance of financialof financial empowerment.empowerment.
  11. 11. On a macro level, America needs help. Total student loan debt is now worth over $1 trillion Healthcare costs are soaring 62% of Americans do not have an emergency fund to cover even minor calamities
  12. 12. Americans are trying toAmericans are trying to manage their finances,manage their finances, but they're not usingbut they're not using the best methods.the best methods.
  13. 13. 82% of consumers keep track of their finances in some way, but over half do it through pen and paper (36%) or in their head (18%)!
  14. 14. Financial institutionsFinancial institutions need to be at the heartneed to be at the heart of helping consumersof helping consumers manage their financialmanage their financial lives better.lives better.
  15. 15. This is the futureThis is the future banking model!banking model!
  16. 16. “If you provide account holders with insight, recommendations, and advice, you build trust.” -MARK SCHWANHAUSSER, DIRECTOR OF OMNICHANNEL FINANCIAL SERVICES, JAVELIN STRATEGY & RESEARCH
  17. 17. Some financialSome financial institutions say, “butinstitutions say, “but we’ve tried PFM!”we’ve tried PFM!”
  18. 18. Traditional PFM hasn’t been effective because the experience is broken. Here’s why…
  19. 19. First of all,First of all, traditional PFM hastraditional PFM has been hidden away,been hidden away, deep into a tab.deep into a tab. That means account holders can’t find it!
  20. 20. Secondly, it reliesSecondly, it relies on single-sourceon single-source aggregation.aggregation.
  21. 21. This means that if the single connection to the data provider breaks, the account holder must wait days, weeks, or even months for their account and transactions to update!
  22. 22. Third, data isThird, data is ineffectively cleansed.ineffectively cleansed.
  23. 23. Most transaction feeds typically consist of a messy string of random-looking characters:
  24. 24. COSTCxx 04ROCHESTER XXX726 XXX-XXX-1189 XXX027
  25. 25. What is an account holder supposed to do with that mess?
  26. 26. Fourth,Fourth, transactions aretransactions are ineffectivelyineffectively categorized.categorized.
  27. 27. If you’ve ever used standard PFM solutions on the web, you know the pain of poor categorization.
  28. 28. Here is how two well known traditional PFM providers perform:
  29. 29. Fifth, the user hasFifth, the user has to do too muchto do too much work themselves.work themselves.
  30. 30. If users have to set their own budget amounts or do multiple calculations to see how their finances are tracking for the month, they are not going to use that PFM product.
  31. 31. “For the most part, a person’s objective in decision making is to arrive at the best possible decision outcome with the least possible effort.” -COLLEEN ROLLER, VP OF USABILITY ENGINEERING / DECISION ARCHITECTURE, BANK OF AMERICA
  32. 32. Lastly, PFM has failedLastly, PFM has failed because of unimaginativebecause of unimaginative user experience.user experience.
  33. 33. “Most financial service UIs are based on an accounting paradigm, which is not surprising since that is how we are all trained to think about our finances.” -MOHAMMAD KHALIL, HEAD OF PRODUCT, DATA & MARKETING, MOVEN
  34. 34. So how is digitalSo how is digital money managementmoney management (DMM) different?(DMM) different?
  35. 35. “Over time, we believe money management will become not just a feature of digital banking but digital banking itself.” -FORRESTER RESEARCH
  36. 36. According to Mapa research, many PFM solutions globally are similar. In the examples that stood out, what was most distinctive was the ability to facilitate integration and increase both intuition and engagement.
  37. 37. With us so far? ;) Here’sWith us so far? ;) Here’s what account holderswhat account holders are looking for in DMM.are looking for in DMM.
  38. 38. A simple, personal and convenient experience that is secure and works A way to monitor all accounts in one place
  39. 39. Anywhere, anytime access View-it-and-do-it functionality Predictive and advice-driven data
  40. 40. DMM best practice #1:DMM best practice #1: A simple, personalA simple, personal and convenientand convenient experience that isexperience that is secure and workssecure and works
  41. 41. “Our emphasis has been rethinking financial service UIs to accommodate new paradigms that are eerily familiar. These paradigms attempt to simplify complex data or processes into highly consumable interactions that are intuitive to the user.” -MOHAMMAD KHALIL, THE HEAD OF PRODUCT, DATA & MARKETING AT MOVEN
  42. 42. DMM best practice #2:DMM best practice #2: A way to monitor allA way to monitor all accounts in one placeaccounts in one place
  43. 43. Celent Research found that 75 percent of account holders said that the ability to view all their finances in one place was “highly valuable.”
  44. 44. DMM best practice #3:DMM best practice #3: Anywhere, anytimeAnywhere, anytime accessaccess
  45. 45. With smartphones enabling on-the-go services, consumers have an always- on mentality.
  46. 46. DMM best practice #4:DMM best practice #4: View-it-and-do-itView-it-and-do-it functionalityfunctionality
  47. 47. Consumers want clear, concise insights where they can see how their finances are tracking and then easily be able to take action from it.
  48. 48. -RICK CLAYPOOLE, DIRECTOR, RETAIL PRODUCT MANAGEMENT AND MARKETING AT CADENCE BANK "It has to be a very elegant solution that makes it very easy for clients to get smart about their financial lives."
  49. 49. DMM best practice #5:DMM best practice #5: Shift from historical toShift from historical to predictive and advice-predictive and advice- driven datadriven data
  50. 50. “Banks traditionally provide historic data, such as last month’s bank statement. We on the other hand will use forward-looking data, such as next month’s bank statement.” -ANTHONY THOMSON, THE FOUNDER AND CHAIRMAN OF ATOM BANK
  51. 51. Now that you know whatNow that you know what a great DMM experiencea great DMM experience looks like, it’s time tolooks like, it’s time to understand how to getunderstand how to get the most out of it!the most out of it!
  52. 52. 4 steps to DMM success: Tighter integration Ongoing staff training Continuous feedback Better marketing and education
  53. 53. DMM success tip #1:DMM success tip #1: Tighter integration ofTighter integration of DMM into homepageDMM into homepage and out of a tab leadsand out of a tab leads to higher engagementto higher engagement
  54. 54. MACU Case Study: 40% adoption: After switching from PFM to DMM, adoption skyrocketed. 2x external accounts added daily: Once digital money management was integrated into the homepage, the number of external accounts added daily more than doubled.
  55. 55. DMM success tip #2:DMM success tip #2: Better marketingBetter marketing and educationand education
  56. 56. “The marketing materials were crucial in making Clarity [the name they gave their DMM white-label product] part of our brand... it significantly helped our adoption rate and increased word of mouth.” -RACHAEL SCHWARTZ, ELECTRONIC MARKETING SPECIALIST OF FARMERS BANK & TRUST
  57. 57. Created an advertising campaign through various marketing channels, including in the sidebar next to the customers' transactions Used instructional videos to explain the product's benefits In order to increase adoption, Farmers Bank & Trust
  58. 58. Integrated the product into online banking, making the enrollment process easy Helped users auto-populate their budgets Created iPad prize draws to encourage users to log in and use it
  59. 59. DMM success tip #3:DMM success tip #3: Ongoing staff trainingOngoing staff training
  60. 60. “The most effective training inspires employees to use the money management solution for themselves.” -ERIN CALDWELL, TRAINING DIRECTOR, MX
  61. 61. DMM success tip #4:DMM success tip #4: Continuous feedbackContinuous feedback
  62. 62. “Société Générale in France ... not only solicits ideas from customers but also asks for their feedback on new developments and asks them to vote to prioritize different improvements.” -FORRESTER RESEARCH
  63. 63. And finally… howAnd finally… how successful hassuccessful has DMM been?DMM been? Check out the andMACU case study here the Insight and Target case study here.
  64. 64. Empowering your account holders' financial lives through digital money management Learn more at MX.com Share

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