Personal Finance Management (PFM)

This term is probably known to everyone managing their funding. Under this process, individual clients or families can see how much they earn, on what and where they spend their money, what they save up for and how they increase the value of their money.

An integral part of work with personal finance is the process of goal planning and monitoring. It is a dynamic procedure which requires regular reviews and repeated evaluation. In short, it is a process spanning from an initial assessment of the current situation followed by setting up goals and designing plans, including compliance with the plans, final monitoring and repeated assessment of the status after all the changes made. As detailed monitoring of personal finance and updating of all input data is a very demanding set of activities, which is often hardly achievable by individuals, we are presenting the PFM solution.

How do PFM solutions help end customers?

The purpose of PFM solutions is to simplify and increase the efficiency of money management. In doing so, PFM solutions work with a great amount of data sources and use sophisticated algorithms. Thanks to this, they help clients to automate tracking of their spending and earnings and gain an overview of their finance as well as setting and attaining short-term and long-term financial goals in a comfortable way. As a result, this all increases financial education of clients and develops positive financial habits.

The following situation is a simple example of a benefit arising for the client: Next summer, the client wishes to go to New York, but has problems in saving up money. Using the PFM solution, he may define a goal in his banking application (the purchase of an air ticket to New York) including the time by which he wishes to have saved up the money. Subsequently, from every payment made, the PFM application will start to automatically send a certain amount to the “money box” intended for the purchase of the air ticket. In addition, the application will analyse the client’s expenses and make recommendations on additional potential savings leading to the attainment of his goal.

How does the PFM solution help the banks?

Personal Finance Management solutions help banks in establishing a new generation of digital platforms, which help to create a unique user experience for clients and enhance the clients’ loyalty towards the bank. Based on the data provided by the PFM solution, banks can increase their sales by making better-targeted offerings meeting the actual needs of their clients.

For banks, the PFM solution means one key benefit, which is knowing better their clients’ behaviour. Thanks to the data about what the clients spend on and save up for, banks are able to offer better products directly accustomed to the needs of their particular clients.

What do we offer?

Both comprehensive implementation of the PFM solution in a particular bank’s environment and development of solutions tailored to banks’ particular needs. This can be done either directly by Deloitte or with help of major PFM vendors with whom Deloitte co-operates.

Analysis and Strategy design
  • Analysis of clients’ needs and definition of the client paths in order to create the best user experience;
  • Analysis of the business and technical requirements for the PFM solution;
  • Design of the PFM solution’s architecture including the deployment model (on premise/cloud); and
  • Integration of the PFM solution with chatbots.

Implementation and Operation launch
  • Design of the PFM solution’s integration into the bank’s environment including the implementation of security mechanisms for delivered components;
  • Design and implementation of the client internet and mobile application for the purposes of PFM functionalities (either as standalone applications or applications entirely integrated in internet and mobile banking);
  • Preparation of a detailed deployment plan for the PFM solution including the prioritisation of individual functional modules; and
  • Design and execute steps needed to ensure adoption of the new solution by the bank’s clients.