Personal financial management tools built into mobile banking and credit card apps are rapidly becoming a table stakes item for financial institutions.
The implications are serious for a variety of reasons. If the PFM functionality is well done, the apps could prove to be stickier in terms of customer retention, a key advantage.
However, the flip side of that advantage is that many consumers are shopping around.
People are splitting off part of their primary banking accounts to try out other financial providers. The incumbent providers run the risk that, if a competitor’s app is better, consumers could decide to consolidate more of their financial business at this new home.
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