Even though Mint has been around for more than 25 years, its active users fell to 3.6 million from a high of 20 million users in 2016. Intuit’s announcement suggested that the shutdown was part of a larger strategy to integrate some of Mint’s features into Credit Karma, along with a GenAI-powered financial assistant. (Budgeting tools are conspicuously absent). What consumers think of the new experience remains to be seen.
Standalone PFM products have always been limited in their ability to meaningfully impact consumer finances. While tools like Mint can be great for budgeting and tracking expenses, consumers are left without truly personalized advice or financial product recommendations that can help them achieve their goals. In other words, we have found, budgeters are budgeters and non-budgeters are non-budgeters, and all the tracking, pie charts and bar graphs illustrating spending habits don’t put more money in the bank. No one wants to hear how bad they have been, they want to easy steps and tips to make gradual change, without giving up their favorite peppermint mocha.
The latest research reflects this sentiment. Research from J.D. Power shows that people want proactive help in improving their financial health, not just tools to monitor it, and 59% of banking customers expect their financial institutions to actively help them improve their financial health.
Helping consumers learn how to save, earn, borrow, invest, and protect their money is a critical step. However, account holders also need guidance to take action and actually implement the right changes when it comes to their financial habits.
For instance, someone who sets a savings goal of $5,000 in a standalone PFM app can monitor their progress toward that goal, but what happens when they reach it? A PFM app is unlikely to recommend investment options or deposit products that will help them continue to build their savings. This is where a financial institution could elevate that experience and truly empower consumers to make smart decisions about their money and build a positive financial future.
That level of insight can be a key differentiator for banks and credit unions and should be part of a long-term strategy that aligns with the ethos of community financial institutions. Changing financial outcomes for customers translates into account holders with higher credit scores, more discretionary income to spend on products and services, and the ability to meet their financial commitments for loans and mortgages in the future. Better quality of life for your account holders also means higher lifetime value – a win-win.
The institutions that succeed in the season ahead will be the ones that go beyond rates alone to attract and engage consumers. They will instead take on a more active role in helping account holders reach their financial goals. This approach also drives deposits by revealing cross-sell opportunities that align with consumers’ financial needs, helping financial institutions cultivate a more profitable account-holder base long term.
