Abstract
Overview
Adoption of online banking is beginning to plateau, and online banking
personal financial management (PFM) will be the capability that helps
reinvigorate interest in the channel and strengthens existing customer
relationships. Based on quantitative data, historical industry trends and
executive interviews from top FIs and technology vendors, Javelin assessed and
created a twostage implementation plan for online banking PFM. Consumer data
provides the basis for feature and platform preference segmentation, followed
by a review of vendors in the space.
Primary Questions
- How should financial institutions implement online banking PFM?
- What is the market potential for online banking PFM?
- What features of online banking PFM resonate most with consumers?
- Which customer segments should be targeted with particular features to
encourageadoption of online banking PFM?
Audience:
Financial Institutions: Online channel, eCommerce, Marketing; Technology
Vendors:
Online banking platform providers, aggregators, Web-based personal financial
management companies
Companies/Organizations Mentioned in Report:
- Corillian
- Digital Insight
- Intuit
- Microsoft
- Wesabe
- Yodlee
Table of Contents
- Overview
- Primary Questions
- Findings and Analysis
- Declining Adoption Rate For Online Banking Requires Enhanced Functionality
to Draw Additional Customers
- Two-Stage Implementation of Online Banking PFM
- Stage 1: Segmentation: Focus on High-value Customers First
- Stage 2: Put Cross-Institution Aggregation on the Roadmap
- Mass Adoption of Online Banking PFM - A Long-Term Goal
- Demonstrate Value to Stimulate Uptake
- Insights into the PFM User
- Current PFM Users - Demonstrated Value in Pre-categorized Expenses
Consolidation
- Age - Look to Younger Consumers for Online Banking PFM Acquisition or
Retention Strategies
- Income Level - Valued Features Differ across Groups
- Aggregating Across Institutions Provides Value and Increases Retention
- Online Banking PFM and Web-based PFM: What' s the Real Difference?
- Related Research
- Appendices
Table of Figures
- Figure 1: Number of Consumers Engaging in Online Banking 2003 to 2007
- Figure 2: Development Stages for Implementing Online Banking Personal
Financial Management
- Figure 3: Most Valued Features for Managing Finances
- Figure 4: Methods Used to Budget or Manage Finances
- Figure 5: PFM Users' Most Valued Features for Managing Finances
- Figure 6: Methods Used for Managing Finances by Age
- Figure 7: Most Valued Features for Managing Finances by Income
- Figure 8: Likelihood to Remain a Customer if Offered Online Banking PFM by
Income
- Figure 9: Most Valued Features for Managing Finances by Age
- Figure 10: Likelihood of Remaining a Customer because of Online Banking
PFM by Age
- Figure 11: Likelihood of Consolidating Finances by Income
- Figure 12: Effect of Online Banking on Usage Habits
- Figure 13: Reasons for Switching Banks
- Figure 14: Important Criteria for Selecting a New FI
- Figure 15: Reasons for Adopting Online Banking
- Figure 16: Motivators for Viewing More Bills Online
- Figure 17: Longitudinal Usage of Quicken or Money Personal Finance Software
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