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Aug 2017 - IDC Perspective - Doc # EMEA42964717

The Evolution of the Personal Finance Management Market

Author: Lawrence Freeborn


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:

  • Spending patterns. The solution might inform the user how much is spent over the course of the month on travel, groceries, and other categories.
  • Budgeting. The solution can let people know how much they can spend before their next payday.
  • Saving tips. The solution might show where savings can be achieved, and set savings goals.

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.


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