The research indicates that while personal finance management sites have gained increased exposure recently, they are in fact drawing little adoption by consumers. This in turn has placed banks and credit unions in an ideal position to employ online banking in order to provide financial portals that can assist customers in gaining a centralised view of their accounts, the report also suggests.
According to the research, banks currently hold a significant trust advantage compared to PFM sites such as Mint.com. Thus, the survey found that when it comes to security, consumers prefer banks rather than web-based personal finance management services, with 71 percent of interviewees claiming to trust the former compared to 35 percent which have expressed trust for the latter. However, the trust capital can be easily lost by banks if they fail to provide the same level of service and PFM tools as their web-based non-bank rivals.
Other research findings indicate that 59 percent of respondents prefer to check account balances through online banking, while 63 percent of interviewed consumers who use a money management system value most the ability to see up-to-the-minute account balances and transactions in a single place. Also, 24 percent of respondents seek more sophisticated methods such as personal finance tools from financial institutions.
The research was carried out by Javelin Strategy & Research.
Editors notes: This report is the latest in a series of similar research initiatives which signal that online banking is on a decisive upwards swing, with US consumers continually placing their trust in banks rather than PFM websites. Yet consumer trust is an asset easily squandered, as banks are also slower than their PFM rivals in innovating their online banking services. Unless something is done, very soon glossy and fast (think Mint.com) will trump traditional but slow.
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