It’s time for personal financial management solutions (PFM) to evolve. A new generation of consumers need personalized, predictive personal finance tools that are totally hands-off. To find out how to snag the fastest-growing market, don’t miss this VB Live event.
The millennial generation, credit-worthy but just one or two expenses from running out of cash, is starting to worry about their money. And they’re faced with a banking landscape that’s actively uninterested in their particular financial challenges.
“If you don’t have a lot of money you get very little advice and guidance,” says Colin Walsh, CEO and co-founder of Varo Money. “You pay a disproportionate amount of fees and charges. And you’re often receiving very complex products that are pushed through sales channels by people more motivated by their sales incentive rather than the customer’s financial income.”
Millennials are a new kind of customer. They want only the info they need, when they need it. They want decision-making help. And they need to know what to do when they’re in a pinch — and how not to land there again.
The Varo Money mobile banking platform was designed to serve this new generation of customers — and along the way, Walsh has developed some insights into their needs, and how they’re evolving the financial services industry.
Insight 1: Consumers want hands-off solutions
“70 percent of Americans are actually hands off,” Walsh says. “These are people that don’t make advanced budgets or track all the detail categorization on a daily or a weekly basis.”
It’s the market that rejects personal financial management solutions designed for hands-on consumers who want stay on top of their money all day, every day, and is increasingly dissatisfied with the lack of financial guidance at the big banks.
“They just want to live their lives,” says Walsh. “They don’t want to worry about their money. And they just want whomever’s helping them to just tell them a lot of what they need to do.”
Insight 2: Focus on solving problems, not pushing products
“At big banks it’s almost impossible to find basic solutions to basic problems such as, how do I manage my cash flow? Give me a little advice on saving, or I want to take this trip. How should I think about how I want to manage my budget or set up savings?” Walsh says. “That stuff just really doesn’t exist.”
“In order for companies to win, they need to offer solutions that are solving real problems,” Walsh says.
Insight 3: Customers need holistic solutions
“For us, to solve the problem of cash-strapped, credit-worthy hands-off millennials, we had to offer not just a checking or a savings or a PFM, or a notification, or lending tool — we had to actually offer all of them,” Walsh says. “And we had to organize it in a way that is highly intuitive for the customer, so they felt like this is actually solving my problem, and it’s solving it how and when and where I want to solve it.”
Conquering the market
“If you go through all that — catering to a hands-off user, helping them solve problems, developing holistic solutions — if you put these all together, it actually becomes a real win win for both the company that’s solving this, but also for the customer,” Walsh says. “And I think that’s something that will ultimately result in stronger relationships in terms of higher conversions, better lifetime value, lower marketing costs, and lower operational costs.”
To learn what it takes to develop personalized, holistic, hands-off, problem-solving PFM solutions, register now for this interactive VB Live event.
Don’t miss out!
- In this webinar, the panelists will discuss:
- Pivoting the drivers of change and the evolution of PFM in banking
- How to improve customer interaction with financial wellness solutions
- Using predictive analytics and AI to deliver more personalized and engaging financial wellness applications
- Driving customer loyalty and engagement with the next wave of financial wellness solutions
- Katy Gibson, VP Product Management, Envestnet | Yodlee
- Keith Armstrong, Co-founder and Chief Operating Officer, Abe.ai
- Colin Walsh, CEO and Co-founder, Varo Money
- Evan Schuman, Moderator, VentureBeat