Mayralee Martinez
Jul 26 4 min read

The Evolution of PFMs

The Evolution of PFMs

Let's address the current state of personal financial management (PFM) offerings.

Truth be told, they leave much to be desired. Buckle up for an insightful journey that will challenge the status quo as we dive into the limitations of PFMs and explore how we can revolutionize the industry with a superior alternative. 

It's time to face the facts. PFMs have far too many limitations; they aren't cutting it in today’s banking environment. Their engagement rates are disappointingly lfow, and their associated costs are often disproportionate to their value. Removing your PFM from the equation won't upset customers who have already found better solutions elsewhere, like and YNAB.

But let's focus on the real question: What comes next? Where do we find better solutions?


Embracing Personalization

Today's customers crave personalized experiences tailored to their individual needs. With 42% of banking customers demanding personalized advice and money-management support within their mobile banking app, this presents a golden opportunity for banks and credit unions to improve their game. Start by seeking vendors to embed personalized offers within your mobile banking app, catering to retail and commercial customers. Whether considering new ways to drive deposits or how to help your customers get out of debt, it's time to bring a new level of personalization to the table.

Once you embrace this shift, prepare for positive outcomes. With Finotta's Personified Platform, users went from spending less than a minute a month in their mobile banking application to 13.5 minutes a month. Personalized Financial Guidance promotes increased app usage, more time spent in the app, higher product conversions, and a digital customer experience that truly delights.

Power of PFMs (engagement stat)

Exploring Better Solutions

It's time to think beyond PFMs and explore alternative approaches that meet customers' evolving expectations. Innovative vendors specializing in personalized financial guidance, like Finotta, are the key. We use advanced technology to analyze data and provide tailored recommendations that meet customers' needs. Imagine the impact of receiving guidance that is tailored to your exact wants and needs with proactive solutions directly within your banking app.  PFG can provide suggestions like opening an emergency savings account and prompting you to save six months' worth of expenses while coaching you through the experience. It's a game-changer.

The Benefits of Personalized Financial Guidance

You can also bid farewell to reliance on external personal finance apps. Become the go-to partner for your customers' financial journey. With personalized guidance and offers directly in your digital channel, you'll empower them to make smarter financial decisions in one place, leading them toward greater financial well-being.


Customers don't need (or want!) any more negativity thrown in their faces. PFMs say, "Hey, you're in a hole," and that's it. However, with a positive and encouraging approach, PFG offers practical solutions on what customers can do with their money to meet their specific goals. Solutions-driven versus insight-driven, Personalized Financial Guidance tells a customer, "Hey, you're in a hole, and here's the exact ladder you need to get out." It's essentially the 2.0 version of PFMs and what they were intended to be. By integrating personalized offers within your mobile banking app, you'll experience a surge in customer engagement. Users will be drawn to the relevant and valuable recommendations, resulting in increased conversions, revenue generation, and, most importantly, satisfied customers.

It's time to leave behind the shortcomings of PFMs and embrace the power of Personalized Financial Guidance. By embedding customized recommendations within your mobile banking app, you'll unlock a new level of engagement, revenue generation, and customer satisfaction. Be the FI in the driver's seat of your customers' financial wellness by evolving and elevating the industry. Embrace the change of Personalized Financial Guidance, and pave the way for the future of financial services.



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