first_img 41SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Bryan Clagett Bryan is on the executive team and singularly focused on driving revenue growth through a variety of new initiatives that help financial services and fintech become ever more relevant to … Web: https://www.strategycorps.com Details To be very honest, I do not know where the term personal financial management (PFM) came from. Nor do I know why some companies are labeled PFM companies. From my point of view, personal financial management is something that people do, personally, to manage their  finances.  To say that a banking technology company is a “PFM vendor”, seems short sighted, because in my mind, the ultimate PFM provider is a credit union, not a vendor. At the core of any credit union is the desire to provide the member with solutions and resources that allow for sound financial management. Yes, it’s personal.There are fintech companies that focus heavily on leveraging technology to enhance the online banking experience using data, product and experience to build an environment that provides users more financial tools and relevance. Some of these companies partner with core and online banking providers with strong integrations, with the intent of differentiating their platforms and making them more robust, across all channels. I believe they also have a goal to empower credit unions to do more with data so the credit unions themselves, can compete and live up to their promise of being financial advocates. You can not be a financial advocate unless you actively provide a variety of financial management solutions. “Great” loan rates and a free checking, don’t make your credit union a financial advocate; they make it a commodity.The financial services industry is starting to come to the realization that in order to survive, they must open their architectures. This is putting healthy pressure on core providers to review and enhance their digital ecosystems. Not too long ago, many argued that neobanks would holistically disrupt existing banking models. Perhaps this was an awakening, but the demise of the banking industry is not likely to happen soon. What is happening, is that banks and bank technology providers are increasing innovation and enriching services by using other organizations’ technology or platforms, via solutions such as APIs. All improves a credit union’s ability to be the ultimate personal financial manager of their member households.So-called PFM providers or vendors, at least those that integrate with retail banking platforms, have morphed into financial technology providers that specialize in data collection, analysis, management and usage, with the intent of helping you, the credit unions, provide richer personal financial experiences. Budgeting tools, graphs and the sorts, are not going to you drive your success and help you grow your credit union, unless you approach things from a broader strategic position. You’re going to need data and must find better ways to leverage it, to better predict member needs, while supporting the age old notion that convenience and accessibility remain of paramount importance to the member experience. Digital banking is ripe for disruption and finally evolving as more tools are added, better data leveraged and mobile coming to the strategic forefront.Some Fintech companies, a couple of which had their roots in SaaS consumer budgeting solutions, are now digital financial management providers, working closely with online banking providers and cores to evolve the member experience so you can become the preferred financial provider and the ultimate personal financial manager. They are bringing data-driven user experiences to digital banking and empowering you to compete in new and exciting ways so you can truly become your members financial advocate.I’m no fan of the acronyms (like PFM, PFE) used today, so I’ll end with this. Credit union members need online or digital financial management and online banking is morphing into just this. This shift will help your credit union in many ways, the least of which is to become the true personal financial manager your members want and need.last_img

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