Fed Up with Disjointed Finances, Consumers Clamor for Integrated Experiences

Managing finances has gotten simultaneously easier and harder for consumers over the past few decades. It’s easier than ever to find financial solutions to meet different needs and access services anywhere at any time. But it’s also more complex and more disjointed than ever as consumers turn to different financial providers for different things.

MX’s latest consumer research shows that consumers are overwhelmed by a do-it-yourself money management approach that requires them to access a multitude of apps and websites. Instead, consumers want data-driven financial solutions that meet them where they are — not a plethora of apps that only paint a small portion of their financial picture.

Here’s a deeper look at the evolving expectations of consumers and how financial institutions and fintechs can deliver on what they want and need.

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1. Consumers Default to What They Understand and Trust

Nearly 1 in 4 (24%) consumers say they use a spreadsheet or other manual process to track their finances. This is a 4-point increase among consumers turning to manual processes to track and manage their finances. Why? The majority say it is easier for them to understand (65%) or that it gives them better control over their finances (57%).

The research also found most consumers (65%) prefer to manually pay their bills each month so they can either make sure they can keep track of their finances or have the funds available. They want financial security and clarity.

The solutions for lessening this manual burden for consumers exist — budgeting apps, personal financial management (PFM) tools, and automated payments. So, why aren’t consumers using them? The answer is about building trust. Financial providers have an opportunity to show consumers that they can trust the data and tools available to accurately keep track of their finances.

The key lies in connecting and leveraging data more effectively so that consumers gain the understanding they need to feel confident in the financial tools and apps they use every day.

2. Less is More for Financial Apps and More is More for Financial Features

Our research clearly indicates that consumers are consolidating the number of finance-related apps they use. In less than 6 months, the percentage of consumers who have 3 or more finance-related mobile apps on their phone has dropped 7 points to just 40%.

Now, most consumers (44%) say they only have 1 to 2 finance-related mobile apps currently downloaded to their mobile phone.

The trick for financial institutions and fintechs will be creating a mobile experience that delivers on the features consumers want so that they avoid becoming one of the apps that consumers choose to stop using.

To uncover what tools matter most, we asked what financial wellness features consumers most want from their financial provider. The results were mostly consistent with our historical data but a closer look reveals an interesting trend.

Since many of the percentages have decreased, you might think consumers now want fewer features. We believe it is actually the opposite. Consumers no longer have a clear top "must-have" feature. Instead, they want everything to help them achieve financial wellness. But, financial providers need to deliver this "everything" financial wellness solution in a way that is intuitive and not overwhelming.

3. Put Consumer-Permissioned Data to Work for Consumers

Consumers are ready to share more data if it will deliver better experiences for them:

• 55% agree they would give their financial provider access to more of their data if they knew it would result in a better experience.
• 58% agree they expect their financial provider to leverage the data they have about them to personalize their experience.
• 65% agree they expect financial institutions to use the data they have about them to provide them with actionable and clear insights about their finances.

A Crazy Statistic:

The percentage of consumers who agreed they would give their banking provider access to more of their data if they knew it would result in a better experience:

55%

Consumers want their financial providers to know them, but they won’t just share their data without seeing any value in doing so. Generic marketing messages based on a small slice of data will no longer cut it. However, many institutions still struggle to put the data consumers share into action to deliver more personalized experiences.

At the same time, financial providers need to prove that they can protect this data. In fact, 55% of consumers are worried about which financial providers have access to their financial data. But, 49% agree they will freely share their financial data as long as they trust it is securely protected.

Financial providers who get this dynamic right will earn the right to continue accessing consumer-permissioned financial data to improve consumer and business outcomes. And, these financial providers will earn their spot in a consumer’s financial life when they are choosing which apps to consolidate or delete.

The Bottom Line: Intuitive, Connected, Trusted Financial Tools Will Win

Financial providers should focus on how they can better leverage connectivity and data to deliver on rising consumer expectations for more integrated and more personalized solutions, including:

• Expanding on financial wellness features to deliver rich, intuitive tools.
• Making it easier for consumers to connect financial accounts, understand their finances, and take action without the need for manual processes or spreadsheets.
• Building consumer trust by leading with privacy-first principles and putting the data they choose to share into action for them.