The premise of personal financial management (PFM) solutions is that they provide a single portal through which consumers can manage all their banking relationships. Using a PFM solution, consumers only need to log into one place to see a complete view of their financial positions. The PFM solution can knit together data from the different accounts and categorize spending to present useful insights to consumers. These insights can include:
The concept of a PFM solution has existed for a few years without ever reaching mainstream acceptance. However, it has always had backers in the consumer banking industry who see improved analytics capabilities as an opportunity to provide more value-adding information through PFM portals, view the mobile channel as a new way of reaching customers and building relationships, and think PFM will provide opportunities for cross-selling.