The recent rise of Fintech and its innovation in the financial sector has captured attention for a variety of services and solutions, including Personal Finance Managers (PFM), which are emerging as a fast-growing trend in banking services. 

PFMs stand out as crucial tools in an era when digitalization, although essential, can lead to the homogenization of services. These platforms offer valuable support for differentiation, allowing banks and other financial institutions to keep pace with changes in asset management habits and respond to the growing demand for digital banking services. 

These types of services allow users to add all their financial accounts, including bank accounts, credit cards, and investments, in one place, keeping all their information centralized. In addition, they provide financial analysis tools that allow users to better understand how they are spending their assets and where they can make their investments.  

For banks, it is a chance to offer a unique opportunity to differentiate themselves from their competitors in an increasingly homogenized market by delivering hyper-personalization to their customers.   

With the increasing digitalization of banking services, many banks offer very similar services, making it difficult for consumers to choose one bank over another.   

PFM Features  

Tracking of finances   

One of the biggest benefits of using an MFP is the ability to monitor your finances in real-time and integrated with other banks via open banking.   

Creating budgets and goals  

You can set spending limits for various categories, such as food, transportation, and entertainment, and track your progress against your goals. This can help you save money and prepare for big expenses such as vacations or major purchases.  

Investment management  

Use it quickly to monitor your portfolios and by providing information about your financial positions. You can use this information to make informed decisions about which investments are appropriate and how to allocate your resources efficiently.  

Key Advantages   

• Increased customer engagement: Customers are more likely to use online banking regularly if they have access to an MFP that provides valuable information about their finances.  

• Increased customer loyalty: customers are more likely to stay with a bank that offers tools and services that help them manage their finances effectively.  

• Data analysis: Banks can gain valuable insights into their customers' financial behavior by analyzing data from personal finance managers. This can help banks develop more targeted products and services that meet the specific needs of their customers.   

• Cross-selling opportunities: Banks can identify cross-selling opportunities by analyzing data from personal finance managers.  

• Automated recommendations based on income and expense behavior and comparisons with similar customers.   

However, offering PFM services is not enough to stand out from competitors.   

The financial industry needs to ensure that the PFMs they offer are easy to use, secure, and reliable. In addition, they need to support customers to ensure they understand how to use the platform and get the most out of it.  

With ARMIS your company can offer your customers a clear view of their finances and help them manage their assets more efficiently. ARMIS helps your organization collect valuable information about your customers' financial behavior and offers customized products and services to meet their needs.