- Language: English
- Published: November 2012
- Region: Global
Personal Finance Management 2011: How PFM Can Set the Stage for One-Stop Online Banking and Define Mobile Banking
- Published: November 2011
- 55 Pages
- Javelin Strategy & Research
With more than 14% of Americans saying they do not monitor or manage their finances, there is a pressing personal, industry, and economic need to provide consumers with a better means to oversee their finances. Banks and credit unions are in the best position to fill this need by spotlighting personal finance management (PFM) capabilities from the moment customers log in—not in a tab. Javelin asked more than 2,300 consumers to evaluate a concept of “one-stop online banking” that would enable them to monitor all their financial accounts in one place, pay bills, analyze their spending, transfer funds, and initiate person-to-person payments from a single starting page. Using predictive analysis, Javelin identified which components of this “view + do” concept are essential, the primary benefits for using one-stop PFM, and the most powerful motivations and obstacles for this concept. The report also:
- Sheds new light on the debate over whether consumers are willing to provide login credentials in order to see aggregated account information. It also shows how to counter consumers' two primary anxieties: the fear of a security breach, and privacy worries over how an FI would use the information.
- Calls for a new approach to security that does not rely on the risky practice of sharing passwords.
- Builds on previous Javelin findings regarding how PFM can provide a broad and compelling return on investment.
- Details why community banks are at a disadvantage with PFM but could enjoy a bigger upside.
- Maps out how to exploit the power of PFM—differently—for smartphones and tablets.
- Profiles Pageonce, a PFM startup on a mission to use mobile bill pay to dethrone Mint and challenge FIs. Primary Questions
- How can financial institutions redefine PFM for a mass-market audience?
- Would consumers value and use Javelin's concept of one-stop, “view + do” online banking that spotlights PFM and bill pay right from the login?
- What components of this PFM concept are most compelling?
- What are the most powerful motivations and obstacles for using one-stop online banking?
- What methods do consumers rely on to monitor and manage their finances?
- Are consumers willing to provide login credentials in order to aggregate account data held at outside FIs, and what are their main worries?
- How can PFM provide a return on investment?
- Why are community banks at a disadvantage with PFM?
- How can FIs use PFM to define mobile banking and payments and tailor it for smartphones and tablets?
This report is based on data collected online from a random-sample panel of 2,304 consumers in August 2011. The overall margin of sampling error is ±2.04 percentage points at the 95% confidence level. The survey targeted respondents based on representative proportions of gender, age, income, and ethnicity compared to the overall U.S. online population Audience: Financial institutions: Senior strategists, product managers, and marketers responsible for online banking, personal finance management tools, mobile banking, bill pay, financial alerts, transfers, and credit and debit cards. Vendors: Online- and mobile-banking platform providers, online and mobile banking vendors, and online and mobile marketing companies. Consumer websites: Personal finance websites and software developers of mobile personal finance applications. Wireless industry: Wireless carriers. SHOW LESS READ MORE >
Hands-Off Money-Management Habits Undermine Consumer Confidence, Economic Recovery, and FI Profitability
One-Stop Online Banking Can Build on Today's Consumer Preferences
Javelin's Predictive Analysis: Practicality of One-Stop Online Banking Trumps Worries About Security, Privacy, and Clutter
Javelin's One-Stop Online Banking Concept
How to Interpret Javelin's Predictive Models
What Attributes Do Consumers Find Most Enticing in One-Stop PFM?
Why the Value of Transfers and P2P Payments Is Likely to Grow
What Financial Behaviors Determine Who Is Likely to Use PFM?
What Will Spur or Hinder PFM Use?
In Their Own Words: Why Consumers Say One-Stop Online Banking Is Compelling—or Off-Putting
Aggregation Spurs Javelin's Call for a New Approach to Security
Four More PFM Features That Consumers Want
Are Consumers Willing to Provide Login Credentials?
Exploring the Economics of PFM
From a PFM Perspective, Consumer Backlash Against Debit Fees Could Help Banks
Why Community Banks Are at a Disadvantage With PFM
The Next Phase: Redefine PFM for Smartphones—and Then Again for Tablets
PFM for Smartphones
PFM for Tablets
Why Pageonce's Bill Pay App Poses a Threat to Mint and FIs
Table of Figures
Figure 1: Methodology: Behavioral Definition Used to Segment Consumers
Figure 2: Methods of Managing Their Money (Gen Y vs All Consumers, 2009–2011)
Figure 3: Primary Method of Monitoring and Managing Finances (2009–2011)
Figure 4: A Guide to Interpreting Javelin's Predictive Analysis 18
Figure 5: Relative Comparison of Attributes of Javelin's Concept of PFM From the Login
Figure 6: Relative Comparison of Banking Behavior That Fuels or Inhibits the Use of PFM
Figure 7: Relative Comparison of Top Motivations and Obstacles for PFM Adoption
Figure 8 : Screenshot of Mint's Instructions for Restoring Access to ING Data
Figure 9: Screenshot of ING Direct ‘Access Code' Page
Figure 10: Likelihood of Using Specific PFM Features in the Javelin Concept
Figure 11: Consumers' Willingness to Provide Login Credentials for Aggregation (2010–2011)
Figure 12: Consumers' Willingness to Provide Login Credentials for Aggregation (by Generation)
Figure 13: Consumers' Willingness to Provide Login Credentials for Aggregation (by Size of FI)
Figure 14: Change in Banking Relationship in Past Year by Bank PFM Users
Figure 15: Consumers' Willingness to Remain a Customer If Aggregation Is Offered
Figure 16: Consumers' Likelihood to Use One-Stop Online Banking (by Size of FI)
Figure 17: Screenshots of Pageonce's Bill Presentment on Smartphones
Figure 18: Methods for Managing Finances (Multiple Methods Allowed) (2009–2011)
Figure 19: Types of Money-Management Systems Used (by Generation)
Figure 20: Relative Comparisons of Motivations and Obstacles for PFM Adoption (Gen Y)
Figure 21: Relative Comparisons of Motivations and Obstacles for PFM Adoption (Gen X)
Figure 22: Relative Comparisons of Motivations and Obstacles for PFM Adoption (Baby Boomers)
Figure 23: Relative Comparisons of Motivations and Obstacles for PFM Adoption (Moneyhawks)
Figure 24: Relative Comparisons of Motivations and Obstacles for PFM Adoption (Cautiously Content Consumers)
Figure 25: Customer-Driven Architecture™ Sequence and Pay-Off
- Apple Mint
- Bank of America
- ING Direct
- Intuit Visa
- Manilla Wells Fargo
- MasterCard Yodlee