Personal Finance Management (Part 1): What Consumers Really Want from PFM
|Personal Finance Management (Part 1)|
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- Which consumers are hungriest for PFM tools?
- What are the building blocks for constructing marketleading PFM capabilities?
- How important is it for banks and credit unions to present a financial snapshot that includes data for accounts held at outside financial institutions?
- Are consumers willing to provide login credentials and passwords in order to see all their financial accounts in one place?
- Do consumers trust banks more than they trust personal finance websites to keep their login credentials safe?
- What are specific ways that PFM tools can enhance revenue opportunities, lower operating costs or reduce identity‐fraud losses?
- Why is PFM critical to a financial institution’s mobilebanking and payments strategy?
This report is based mainly on data collected online from a random‐sample panel of 1,995 online consumers in August 2010. The survey targeted respondents based on proportions of gender, age and income representative of those of the general U.S. online population. Overall margin of sampling error is ±2.19% at the 95% confidence level.
This report also incorporates chronological data collected online from a random‐sample panel of 2,019 respondents in August 2009; the margin of sampling error is ±2.18 percentage points at the 95% confidence level.
Javelin collected identity fraud data from a survey using computer‐assisted telephone interviewing (CATI) via random‐digit dialing (RDD) from 5,000 respondents in November 2009. For questions answered by all 5,000 respondents, the maximum margin of sampling error is ± 1.4% at the 95% confidence level. For questions answered by all 703 identity fraud victims, the maximum margin of sampling error is ± 3.7% at the 95% confidence level. For questions answered by a proportion of all identity fraud victims, the maximum margin of sampling error varies and is greater than ± 3.7% at the 95% confidence level.
To develop a more detailed understanding of what consumers want in the way of PFM tools, Javelin identified four basic types of money managers based on the methods they use to monitor and manage their finances. They are defined in the following table.
|Type of Money Manger||Definition|
|Paper-and pen manaers||Use pen‐and‐paper methods to manage their finances|
|Online balance-checkers||Log in to online banking to check account balances|
|Desktop-PFM users||Use personal finance software such Quicken or spreadsheet software such as Excel|
|Web-PFM users||Use PFM tools offered by a bank, credit union or a personal finance website such as Mint|
|Bank of America||Microsoft|
|Jack Henry & Associates||Yodlee|
|JP Morgan Chase|