1.
TRADITIONALTRADITIONAL
PFM IS DEADPFM IS DEAD
Welcome to the New World of
Digital Money Management

2.
You’ve seen theYou’ve seen the
money that financialmoney that financial
institutions areinstitutions are
investing in digital.investing in digital.

3.
Bank of America CEO
said they spend $500
million per year on their mobile
online platform and will continue to
invest at that rate.
Brian
Moynihan

4.
You know what’sYou know what’s
happening in Siliconhappening in Silicon
Valley and LondonValley and London
right now.right now.

5.
“Global fintech investment
jumped
.”
- CB INSIGHTS & ACCENTURE
201% between 2013
and 2014

6.
And you know thatAnd you know that
banking models arebanking models are
fundamentallyfundamentally
changing.changing.

7.
“By 2020, more than 30 percent
of banking revenues could be at
risk due to new competitors
and trends.”
- ACCENTURE

8.
Financial institutionsFinancial institutions
need to get ahead ofneed to get ahead of
these changes bythese changes by
empowering theirempowering their
account holders.account holders.

9.
“We need to reimagine how banks can
truly enrich customers’ lives.”
- BRADLEY LEIMER, HEAD OF INNOVATION, SANTANDER BANK U.S.

10.
Banks and creditBanks and credit
unions are recognizingunions are recognizing
the importancethe importance
of financialof financial
empowerment.empowerment.

11.
On a macro level, America
needs help.
Total student loan debt is now worth
over $1 trillion
Healthcare costs are soaring
62% of Americans do not have an
emergency fund to cover even
minor calamities

12.
Americans are trying toAmericans are trying to
manage their finances,manage their finances,
but they're not usingbut they're not using
the best methods.the best methods.

13.
82% of consumers keep track of
their finances in some way, but
over half do it through pen and
paper (36%) or in their head (18%)!

14.
Financial institutionsFinancial institutions
need to be at the heartneed to be at the heart
of helping consumersof helping consumers
manage their financialmanage their financial
lives better.lives better.

15.
This is the futureThis is the future
banking model!banking model!

16.
“If you provide account holders with
insight, recommendations, and
advice, you build trust.”
-MARK SCHWANHAUSSER, DIRECTOR OF OMNICHANNEL
FINANCIAL SERVICES, JAVELIN STRATEGY & RESEARCH

17.
Some financialSome financial
institutions say, “butinstitutions say, “but
we’ve tried PFM!”we’ve tried PFM!”

18.
Traditional PFM hasn’t
been effective because the
experience is broken.
Here’s why…

19.
First of all,First of all,
traditional PFM hastraditional PFM has
been hidden away,been hidden away,
deep into a tab.deep into a tab.
That means account holders
can’t find it!

20.
Secondly, it reliesSecondly, it relies
on single-sourceon single-source
aggregation.aggregation.

21.
This means that if the single
connection to the data provider
breaks, the account holder must
wait days, weeks, or even months
for their account and transactions
to update!

22.
Third, data isThird, data is
ineffectively cleansed.ineffectively cleansed.

23.
Most transaction feeds
typically consist of a messy
string of random-looking
characters:

24.
COSTCxx 04ROCHESTER
XXX726 XXX-XXX-1189 XXX027

25.
What is an account holder
supposed to do with that mess?

26.
Fourth,Fourth,
transactions aretransactions are
ineffectivelyineffectively
categorized.categorized.

27.
If you’ve ever used standard PFM
solutions on the web, you know the
pain of poor categorization.

28.
Here is how two well known
traditional PFM providers perform:

29.
Fifth, the user hasFifth, the user has
to do too muchto do too much
work themselves.work themselves.

30.
If users have to set their own
budget amounts or do multiple
calculations to see how their
finances are tracking for the
month, they are not going to use
that PFM product.

31.
“For the most part, a person’s
objective in decision making is to
arrive at the best possible decision
outcome with the least possible
effort.”
-COLLEEN ROLLER, VP OF USABILITY ENGINEERING /
DECISION ARCHITECTURE, BANK OF AMERICA

32.
Lastly, PFM has failedLastly, PFM has failed
because of unimaginativebecause of unimaginative
user experience.user experience.

33.
“Most financial service UIs are based on
an accounting paradigm, which is not
surprising since that is how we are all
trained to think about our finances.”
-MOHAMMAD KHALIL, HEAD OF PRODUCT,
DATA & MARKETING, MOVEN

34.
So how is digitalSo how is digital
money managementmoney management
(DMM) different?(DMM) different?

35.
“Over time, we believe money
management will become not
just a feature of digital banking
but digital banking itself.”
-FORRESTER RESEARCH

36.
According to Mapa research, many
PFM solutions globally are similar.
In the examples that stood out,
what was most distinctive was the
ability to facilitate integration and
increase both intuition and
engagement.

37.
With us so far? ;) Here’sWith us so far? ;) Here’s
what account holderswhat account holders
are looking for in DMM.are looking for in DMM.

38.
A simple, personal and
convenient experience
that is secure and works
A way to monitor all
accounts in one place

39.
Anywhere, anytime access
View-it-and-do-it functionality
Predictive and advice-driven data

40.
DMM best practice #1:DMM best practice #1:
A simple, personalA simple, personal
and convenientand convenient
experience that isexperience that is
secure and workssecure and works

41.
“Our emphasis has been rethinking
financial service UIs to accommodate
new paradigms that are eerily
familiar. These paradigms attempt to
simplify complex data or processes
into highly consumable interactions
that are intuitive to the user.”
-MOHAMMAD KHALIL, THE HEAD OF PRODUCT,
DATA & MARKETING AT MOVEN

42.
DMM best practice #2:DMM best practice #2:
A way to monitor allA way to monitor all
accounts in one placeaccounts in one place

43.
Celent Research found that 75
percent of account holders said
that the ability to view all their
finances in one place was “highly
valuable.”

44.
DMM best practice #3:DMM best practice #3:
Anywhere, anytimeAnywhere, anytime
accessaccess

45.
With smartphones enabling
on-the-go services,
consumers have an always-
on mentality.

46.
DMM best practice #4:DMM best practice #4:
View-it-and-do-itView-it-and-do-it
functionalityfunctionality

47.
Consumers want clear, concise
insights where they can see how
their finances are tracking and then
easily be able to take action from it.

48.
-RICK CLAYPOOLE, DIRECTOR, RETAIL PRODUCT
MANAGEMENT AND MARKETING AT CADENCE BANK
"It has to be a very elegant solution
that makes it very easy for clients to
get smart about their financial
lives."

49.
DMM best practice #5:DMM best practice #5:
Shift from historical toShift from historical to
predictive and advice-predictive and advice-
driven datadriven data

50.
“Banks traditionally provide historic
data, such as last month’s bank
statement. We on the other hand will
use forward-looking data, such as
next month’s bank statement.”
-ANTHONY THOMSON, THE FOUNDER AND
CHAIRMAN OF ATOM BANK

51.
Now that you know whatNow that you know what
a great DMM experiencea great DMM experience
looks like, it’s time tolooks like, it’s time to
understand how to getunderstand how to get
the most out of it!the most out of it!

52.
4 steps to DMM success:
Tighter integration
Ongoing staff training
Continuous feedback
Better marketing and education

53.
DMM success tip #1:DMM success tip #1:
Tighter integration ofTighter integration of
DMM into homepageDMM into homepage
and out of a tab leadsand out of a tab leads
to higher engagementto higher engagement

54.
MACU Case Study:
40% adoption: After switching from PFM to
DMM, adoption skyrocketed.
2x external accounts added daily: Once digital
money management was integrated into the
homepage, the number of external accounts
added daily more than doubled.

55.
DMM success tip #2:DMM success tip #2:
Better marketingBetter marketing
and educationand education

56.
“The marketing materials were
crucial in making Clarity [the name
they gave their DMM white-label
product] part of our brand... it
significantly helped our adoption
rate and increased word of mouth.”
-RACHAEL SCHWARTZ, ELECTRONIC MARKETING
SPECIALIST OF FARMERS BANK & TRUST

57.
Created an advertising campaign through
various marketing channels, including in the
sidebar next to the customers' transactions
Used instructional videos to explain
the product's benefits
In order to increase adoption,
Farmers Bank & Trust

58.
Integrated the product into online banking,
making the enrollment process easy
Helped users auto-populate their budgets
Created iPad prize draws to encourage
users to log in and use it

59.
DMM success tip #3:DMM success tip #3:
Ongoing staff trainingOngoing staff training

60.
“The most effective training inspires
employees to use the money
management solution for themselves.”
-ERIN CALDWELL, TRAINING DIRECTOR, MX

61.
DMM success tip #4:DMM success tip #4:
Continuous feedbackContinuous feedback

62.
“Société Générale in France ... not only solicits ideas
from customers but also asks for their feedback on
new developments and asks them to vote to prioritize
different improvements.”
-FORRESTER RESEARCH

63.
And finally… howAnd finally… how
successful hassuccessful has
DMM been?DMM been?
Check out the andMACU case study here
the Insight and Target case study here.

64.
Empowering your account holders' financial
lives through digital money management
Learn more at MX.com
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