Personal Finance Management Solutions – Help Me to Help You

Financial Goals Investment Strategy SM

Editor's Note: A fully integrated and streamlined Personal Finance Management (PFM) solution provides consumers with the tools needed to reach their financial goals and  fosters a closer relationship with their FI. 

Personal Financial Management (PFM) solutions are certainly not new to the industry.  In their more than 30 year history, the mission of PFM hasn’t changed—help users manage and understand their money and financial situation while also helping financial institutions develop deeper relationships with customers.  PFM solutions are designed to enable users to categorize transactions, customize categories, develop and manage budgets and add accounts from multiple divisions or institutions, all in a single solution or view.

The data collected enables users to view and better understand their spending trends, budgets and net worth to get a truly holistic view of their financial situation.  This complete view enables users to better manage daily finances, prepare for financial challenges and achieve major financial landmarks, such as buying a house or comfortably retiring.

To achieve a true holistic view, there must be seamless integration of PFM into digital banking platforms. This integration provides users with one focal point for a complete view of their financial health, rather than having to go into another application, enter another password and continuously input data from various accounts.  This also ensures there are no discrepancies in categories or tracking methods and ensures comprehensive alerting options and predictive payments capabilities. Configurable, customizable alerting capabilities are vital to users to help police activity on their accounts, manage spending as well as to help reduce fraud. With an integrated solution, users can easily track expenses and progress to stay on-track for life’s biggest financial milestones and challenges. 

PFM solutions also provide banks and credit unions with a mechanism to engage customers or members. Providing a user-friendly and fully integrated digital banking platform that allows consumers to stay on top of their finances and proactively manage all financial accounts serves as a way of nurturing consumer relationships. By reassuring consumers that their financial institution has their best interests in mind, organizations find it easier to market and cross-sell additional financial services.  This additional level of service demonstrates that the financial institution is truly there to help consumers improve their financial health. 

Without a holistic view, it can be challenging to have a solid understanding of one’s financial health and cumbersome to keep track of transactions. Utilizing a PFM solution that is fully integrated with the bank’s digital banking platform will provide the insight and guidance to keep users on track and in line with their financial goals while also helping financial institutions engage the consumer and enhance relationships. As such, providing consumers with a user-friendly, convenient and simple PFM enables both parties to reach their goals faster.