Abstract
Overview
Consumers have long desired greater control over their finances and the
extended pain of the global recession has only heightened the need for better
online tools to help them monitor and manage their money. Although websites
such as Quicken Online and Mint have captured headlines for their innovative
tools, a Javelin survey of more than 2,000 consumers in August underscores
that banks and credit unions are in an ideal position use online banking to
provide a financial portal that can help customers see all their accounts in
one place in real time, track and analyze their spending, and achieve their
financial goals. However, financial institutions and online-banking vendors
generally have been slow to keep pace with their non-bank rivals, forcing
customers to look elsewhere for PFM tools - potentially squandering their
significant trust advantage with consumers. And Intuit' s announced acquisition
of Mint gives Quicken a smooth one-two combination that just may be a knock
out punch in the competition among consumer PFM websites
Primary Questions
- What methods do consumers typically use to manage their finances today?
- What methods would they prefer to use?
- What benefits and features do they value most when it comes to picking a
money-management system?
- Who is winning the battle for consumers: banks or PFM websites?
- How will Intuit' s acquisition of Mint reshape the PFM landscape?
- Which consumers are most likely to use PFM tools at their banks?
- What features will distinguish “PFM Lite” from “PFM
Deluxe” and PFM of the future?
- What is the return on investment for PFM tools?
Report Statistics
- Audience:
- Financial institutions: E-commerce, mobilebanking and marketing
strategists.
- Vendors: Online-banking platform providers, online-banking vendors,
online-banking marketing.
- Others: Personal finance websites.
- Author: Mark Schwanhausser, Analyst, Multichannel Financial Services
- Length: 64 pages, 36 charts/graphs
Methodology
This report is mainly based on data collected online from a random-sample
panel of 2,019 respondents in August 2009. The survey targeted respondents
based on representative proportions of gender, age and income compared to the
overall U.S. online population. Overall margin of sampling error is
±2.18% percentage points at the 95% confidence level.
Table of Contents
- Overview
- Primary Questions
- Key Findings
- Methodology
- Executive Summary
- Key Recommendations
- 1: Recession Heightens Need for Better Money-Management Systems
- 2: The Need for Better Money-Management Tools Creates Opportunity for
Banks, Credit Unions - and Websites and Software
- 3: What Consumers Like Most About Their Current Money-Management System
- 4: The Quest for a Better Way to Manage Our Money
- 5: The ROI from PFM
- Appendix
- Related Research
- Companies Mentioned
Table of Figures
- Figure 1: Three Stage Roadmap for the Development of PFM Tools
- Figure 2: Change in Financial Behaviors in the Previous 90 Days
(Longitudinal)
- Figure 3: Methods Currently Used to Budget or Manage Finances
(Multiple Answers Allowed)
- Figure 4: How Frequently Consumers Monitor Their Finances
- Figure 5: Number of Financial Institutions Where Consumer Has
Accounts
- Figure 6: Consumers With Accounts With Three or More Financial
Institutions (By Money-Management Method Used)
- Figure 7: Likelihood of Using a Financial Management Method
- Figure 8: Site Usage by Customers Using Bank or PFM Sites to Manage
Their Money
- Figure 9: Primary Site Used by Customers Who Primarily Use PFM
Sites to Manage Their Money
- Figure 10: Primary Site Used by Customers of Mint vs. Quicken
Online (By Generation)
- Figure 11: How Consumers Rate Security (Banks vs. Software vs.
Web-Based PFM)
- Figure 12: How Segments of Consumers Rate Security (Banks vs.
Software vs. Web-Based PFM)
- Figure 13: How Segments of Consumers Rate Security (Banks vs.
Software vs. Web-Based PFM)
- Figure 14: How Consumers Rate Their Performance in Budgeting or
Managing Their Finances
- Figure 15: How Consumers Rate Their Performance in Budgeting or
Managing Their Finances (By Money Management System Used)
- Figure 16: How Consumers Grade the Effectiveness of Their
Money-Management System
- Figure 17: Why Consumers Value Their Money-Management Methods
- Figure 18: Most Important Features of Money Management Methods That
Respondents Use
- Figure 19: Most Important Feature of Money Management Methods That
Respondents Use (By Segment)
- Figure 20: Most Important Features (Those With a Budget System vs.
Those Who Do Not Currently Budget)
- Figure 21: Primary Method Used vs. Preferred Method (All Consumers)
- Figure 22: Primary Method vs. Preferred Method (Gen Y)
- Figure 23: Primary Method vs. Preferred Method (Income of More Than
$75,000 and Accounts with Three or More FIs)
- Figure 24: Preference for Financial Software vs. PFM From Bank or
Websites (By Age)
- Figure 25: Customer Experience and Business Impact
- Figure 26: Number of Financial Products Owned (By Segments)
- Figure 27: Likelihood to Remain a Customer Because of PFM Tools (By
Age)
- Figure 28: Likelihood to Remain a Customer Because of PFM Tools (By
Income)
- Figure 29: Likelihood to Remain a Customer Because of PFM Tools (By
Money-Management Method)
- Figure 30: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Bank PFM)
- Figure 31: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Web-Based PFM)
- Figure 32: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Excel)
- Figure 33: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Paper and Pen)
- Figure 34: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Online Banking)
- Figure 35: Primary Method Used vs. Preferred Method (Consumers Who
Currently Use Mobile Banking)
- Figure 36: Primary Method Used vs. Preferred Method (Consumers Who
Are Likely to Remain Customers if Offered PFM Tools)
Companies Mentioned
- Bank of America
- Digital Insight
- FinanceWorks
- Geezeo
- HackerSafe
- Intuit
- Microsoft
- Mint
- PayPal
- Quicken Online
- RSA
- Rudder
- TRUSTe
- VeriSign
- Wesabe
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