- Forrester Councils
- Councils Overview
- log in
Posted by Tiffani Montez on January 31, 2012
As a new analyst researching vendors for digital banking, I wanted to share an observation as eBusiness and Channel Strategists are making decisions about digital financial services investments. In the last few months, I’ve interviewed personal financial management vendors and banks about their PFM implementations. One notable theme is bubbling up to the surface, what role does PFM play in online banking’s future?
With notable success in driving higher engagement, vendors and banks report that customers spend between a 2-4x more time in PFM than online banking. While both online banking and PFM have similar goals to increase retention, cross-sell, loyalty, and provide customers with greater insight into their financial picture, both offer different customer experiences. Functionally, the main difference is that online banking supports transfer and self-service capabilities, while PFM does not support transferring capabilities and may loosely, at best, integrate self-service. The biggest difference is customer experience.
So the real question is: will online banking and PFM continue to have a bad romance, one where there is little integration or will the focus on upgrading online banking and PFM provide the focus needed to breakdown the silo features and commit to a coupled customer experience? PFM has demonstrated its effectiveness at driving engagement, engagement drives insight, and insight provides a view into a customer full financial picture. Regardless of “what” technical solution you choose, position your most valuable assets first and then build a strong foundation of self-service, payments, and account utilization features around it.
As I continue my vendor research on PFM and online banking, I would love to hear what on your mind as you lay out your money management framework. Feel free to contact me directly. @tiffanimontez