the personalization of digital money management

The Personalization Of Digital Money ManagementPeter Wannemacher, Sr. Analyst

Forrester Research with MX TechnologiesJune 23, 2016

© 2016 Forrester Research, Inc. Reproduction Prohibited 3

Agenda

› The landscape today› The power of personalization› The challenges companies face

A set of integrated online and mobile tools for money management, typically including but not limited to account aggregation, automatic transaction categorization, goal setting, and forecasting.


Forrester’s four components of DMM

Source: Forrester Research


Many customers are open to digital advice

Base: 4,527 US online adultsSource: Forrester’s North American Consumer Technographics Financial Services Survey, 2015

“How strongly do you agree or disagree with the statement ‘I trust digital finance advice’?”

Agree22%

Middle35%

Disagree43%


Most active DMM users are 25 to 45

Base: US online adults who use at least one digital money management tool (via a financial provider or a third-party app/siteSource: Forrester’s North American Financial Services Online Benchmark Recontact Survey, 2015


Higher-income folks over-index on DMM

Base: US online adults who use at least one digital money management tool (via a financial provider or a third-party app/siteSource: Forrester’s North American Financial Services Online Benchmark Recontact Survey, 2015


There are many money management tools

Sources: CIBC and USAA secure websites



Sources: Koho, Meniga, and Albert smartphone apps and mobile sites



Sources: PNC Virtual Wallet and MX Technologies


Personalized banking has been lacking

Source: Capital One iPhone app


Personalized banking has been lacking



USAA offers personalized mobile apps

Source: USAA Savings Coach smartphone app


The future of digital banking is context



Firms face many substantial barriers

Source: Forrester Research. “The State Of Digital Money Management, 2015” report.

http://www.forrester.com/go?docid=122585


Firms will need to focus on foundational digital initiatives…



…this will involve re-engineering



Digital money management capabilities›Real-Time Data

›Data Visualizations

›Natural Language Processing

›Recommendation Engine(s)

› External Account Aggregation

› Predictive Analytics

›Game Mechanics

›Categorization Engine(s)

› APIs

›Machine Learning

› Alerts/Messaging Capabilities


Predictive analytics enable personalization



Source: Forrester Research, “Mobile Is The New Face Of Engagement” report.

http://www.forrester.com/Mobile+Is+The+New+Face+Of+Engagement/fulltext/-/E-RES60544



“Our first implementation of PFM was working on a batch process. We were uploading data at night. If you want to provide effective and accurate hints to customers, you need real-time data. You must be providing feedback in real time.”

-Head of eBusiness at a US bank

forrester.com

Thank you

Peter [email protected]@p_wannemacher


Up Next:

Brennan from MX…

Presented by Brennan Knotts

Product Lead at MX

Personalization ofDigital Money Management


MX Technologies © 2016

Award winning UI/UX

Open Platform

Industry BestCategorization



So What?Enter text here

MX FinSmart Personalization




specific to the user





so what?





What makes this possible?Aggregatio

nAllows you to understand the users complete financial picture.






Data 3C’sTransaction cleansing, categorization, classification.







Dynamic TargetingThe segment of users who see this message is always changing and updated in real-time with new data.








Dynamic MessagingTo get the full value out of personalization, the message itself needs to be personalized for each user.









Easy-to-Use ToolsIf your digital and/or marketing teams are going to use personalization, it needs to be easy to setup and track.









Easy-to-Use ToolsIf your digital and/or marketing teams are going to use personalization, it needs to be easy to setup and track.

“Big Data” Marketing PlatformIncluding a data repository, hardware for storage, governance capabilities, data prep, etc.




Future FinSmart Personalized Recommendations




Moving Towards the Analytics Approach

Mergers & Acquisitions Traditional Marketing Retention, Utilization& Held-away

Mass Personalization

Mass personalization tied to permission-based money movement is going to change this industry so dramatically that we will not recognize it within the next decade.

– Bradley Leimer, Head of Innovation, Santander



Questions?

the personalization of digital money management

Economy & Finance