Personal Finance Management

Money management gets a digital makeover

Cross-& up-sell
Customer Experience
Digital and mobile technology is rewriting the rulebook on just about every facet of modern life. Time-poor consumers are using their micro-leisure moments – those minutes of downtime throughout the day – to simplify their daily tasks. They have apps to act as their personal assistant, personal trainer and even to organize their well-being, stress management and sleep rituals.

Money management is another part of daily life that is getting a digital makeover with a range of Personal Financial Management (PFM) tools. These help customers plan, budget and make better financial decisions.

Here's how banks can make the most of the business opportunities.

Deliver compelling data-driven customer experiences

PFM is an integral part of Omni Channel banking, providing seamless and consistently engaging customer communications and service delivery across multiple channels. When banks provide a compelling, rather than overwhelming, PFM experience customers have quick access to relevant, easily digestible tools for improving their financial lives.

Engage customers with relevant communications and targeted product offers

Banks are facing increased competition from a new generation of digital fintech innovators and can't afford to be complacent about customer experience. PFM gives you the opportunity to know your customer better. It tracks financial information so you can automate and personalize your customers' banking experiences in a meaningful way. Crucially, an effective PFM channel allows banks to listen to their customers and really tune-in to what their behavior is telling you they want and need. 

With tailored and actionable customer insights gathered with PFM tools, you can create product offers that optimize engagement and drive sales across digital channels. Cross-selling is more successful when based on a deep understanding of individual customer needs. It means you only offer relevant products to customers based on their personalized behavior data, rather than pushing out generic marketing offers that may not mean anything to them.

Providing your customers with user-friendly tools to stay on top of their finances is an excellent way to nurture ongoing relationships. Marketing communications campaigns can focus on 'we're here to help you improve your financial health,' messages. PFM demonstrates that you have your customers' best interests at heart and this enhanced customer experience can increase consumer advocacy and opportunities for brand differentiation.

At the same time, this customer data is valuable information for financial advisers. They'll know exactly how close their customers are to reaching their long-term financial goals and can discuss relevant offers at the right time. For example, if the goal is a new home, the PFM can trigger a mortgage offer and adviser meeting when a certain level of saving is reached.

Customers can also set their own goals, whether saving for summer holidays, a new car, higher education fees or housing funds. This 'design it yourself' approach extends to automatic and manual tagging so customers can see all their transactions. They can set credit card limits by category and get SMS or email alerts if they get close to those limits and banks can issue customized reports help them compare their spending to their budgets.

Acting on relevant customer data  

Take Suzanne, as an example. She's a 28-year old digital marketing manager, based in Rotterdam. She's keen to further her career and is hoping to study for a Masters degree at an international university. She's chosen a course that blends online learning with face-to-face weekend seminars so she can continue to work – and earn – while she studies. She added this as a goal in her PFM tool and was delighted when her bank offered her a low interest rate education loan to cover the tuition fees.

Help your customers get started with financial planning

In an attention-starved world, customers have little time for managing their personal finances.

But, they also have access to more financial services than ever. New types of credit cards, savings accounts, and banking products give customers more choice, but also make the decision process more complex.

There is a clear need, and desire, for customizable PFM tools. These can help customers take control of their day-to-day finances. By making better decisions about their money, they improve their overall financial outlook.

VeriPark's PFM channel makes your customers' lives simpler, not more complicated. The platform is customizable to their particular lifestyle, goals, and needs. It's the digital equivalent of the jam-jar approach to money management, where they divide their money into separate pots for different expenses – only with much more flexibility and portability.

For banks, VeriPark's PFM works as a new distribution channel that drives customer acquisition in a smartphone-dominated world. It also provides deep customer understanding to increase loyalty, cross sell and up-sell capabilities.