PFM software has been around for over 30 years but was designed for the limited amount of PC users at the time. These were often used for household finances as well as for a small segment of individuals. However, the increase in information available to individuals as well as the ability to obtain a complete view of finances have led to a large number of vendors (and banks) offering PFM services to their clients. A PFM solution typically has two main features, i.e. can record transactions; and be able to aggregate information across different products to present a holistic view of current finances. Other features include automated savings, classification of transactions and budget tracking.
The ability to aggregate transactions and categorise them is at the heart of using data to manage money and, in most cases, in real time as well. Therefore financial decision making can be better informed with all relevant information available. In addition, the availabilityof investment information means that longer time financial decisions can also be taken. The ease of integration of current software with cloud based feeds have also made much of the processes automated with very little manual intervention required. It is now possible to view one’s overall wealth, simplified balance sheet, cash flows, debt management and progress towards financial goals.
The devolving of money management from advisers and institutions to individuals has seen greater levels of financial literacy and ability to customise one’s own money management. Since these PFM solutions are also offered on smartphones, it is now possible to make informed financial decisions in real time.
Although some banks have developed their own PFM software, many are turning to fintechs to white label their offerings. Some fintechs have developed their offering even further and integrated investment options within their PFM.
Encouragingly, there are now PFM solutions across income levels and not just for wealthier clients; an acknowledgement that personal money management is an essential tool for future financial health.
App that allows banks to offer PFM services to their clients
Fintech Themes: Customer Service >
Money management tool that aggregates real-time social profile, credit and bank data into single view
Fintech Themes: Customer Service
Mobile based PFM that elevates the user experience in a fun way that demystifies PFM
Fintech Themes: Mobile VAS / Mobility