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Do You Let Users Add External Accounts? All Your Competitors Soon Will

Apr 22, 2016 3:39:54 PM

Picture this:

You’re the CEO of a financial institution, and you discover that your users aren’t logging in to your online or mobile platforms. Instead they’re going to another site — Mint.com or a competitor’s website — to see all their accounts in one place.

You can see why this is a problem.

If your users don’t sign in to your online or mobile experience to get the info they need, where will they go? Will they stop signing in to your solution altogether? If that occurs, you'll no longer be their primary financial institution and all the benefits that come with it — including cross selling, loan promotion, deposit revenue, etc. As a result, these key revenue sources might be diminished or eliminated. You don’t want to be in this position. No one does.

Luckily, there’s still time for traditional players to innovate. To do this, financial institutions need to allow users to see all their accounts, balances, and transactions together in one place. According to Decipher Research, 85 percent of account holders say that having one place to manage all their finances is one of the most important services a financial institution can offer.

The truth is, no one wants to log into multiple institutions to stitch together a complete picture of their finances. Consumers will go where they can experience the least friction, and the institution with the most seamless solution will win and retain users.

“"Where there is friction, there is opportunity.”"

Bryan Eisenberg, Online Marketer

It's no wonder, then, that the biggest banks are starting to offer users complete account aggregation at rapid rates. In fact, adoption of this feature (often called personal financial management, or PFM) is set to increase by 150 percent in a three-year span at the biggest US banks according to Celent Research (see below).

Based on data like this, Celent Research claims that “from a relationship perspective, PFM will be the most important" innovation for financial institutions. Senior decision-makers at large financial institutions mirror this enthusiasm. Joy Marshall, VP of Internet Services at Wells Fargo, says that PFM "is absolutely central to our online strategy," and Dottie Yates, VP of Online Design at Bank of America, says that "the concept of PFM is driving everything we do.”

These PFM enthusiasts understand why users most frequently rate the ability to “view all your finances in one place” as the most “highly valuable” feature in a mobile app.

Does your financial institution offer the ability for users to view all their finances in one place? If not, your competitor’s apps soon will — if they haven’t already.

That said, you can get ahead today by partnering with a PFM provider of your choice. Once you offer the ability to aggregate external accounts, you’ll no longer have to sit and watch while competitors persuade your users to stop logging into your online and mobile platforms. Instead you’ll be able to do the persuading yourself through your robust PFM offering.

Be the one to offer these advantages so you can effortlessly survive the next five years.


Source: https://www.flickr.com/photos/russnelson/ 

Topics: Technology

Jon Ogden

Written by Jon Ogden

Jon Ogden is the Director of Content Marketing at MX.

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