Banks have a wealth of data, but they lack the technologies and expertise to personalise that data, which in turn leads to their inability to build a stronger engagement with their customers. With PFM in banking, financial institutions can leverage Open Banking data to improve digital banking solutions and offer AI-driven financial insights. For instance, this data may include payment transactions, digital footprints, channel preferences, social media information, and location. The combination of these elements can provide the right solution at the right time for the customer. However, despite the widespread demand for tailored financial produ cts, there is a major barrier: Data Mining and generating actionable insights to enhance customer’s journeys. This data opens up an array of opportunities for traditional banks to go beyond the traditional offering, breaking the boundaries of banking services and enhancing personal financial management. As a result, Open Banking can help banks engage customers based on behavioural targeting instead of treating them like mere customers. Here, understanding what Personal Finance Management (PFM) is becomes crucial, as it allows banks to leverage data more effectively to offer personalised financial insights and solutions through their mobile banking app.
In today’s digital age, customers are used to personalised services. From the TV series and movies, they watch to the food they order online, customers are choosing from a number of decisions made by recommendation algorithms. After all, who has the time to go through an endless sphere of possibilities? An effective recommendation algorithm requires one single thing: Data. And that’s something banks have a slew of. To remain competitive and stay ahead of the market, banks need to start making use of the tremendous amount of transactional data that they possess and provide their customers with tailored solutions— and here’s where AI-driven PFM in banking comes into play.
Our AI-Driven Personal Finance Manager (PFM) Tool Makes Money Management Easier, Smarter, and More Personal, helping consumers stay on track with their financial goals
What is PFM in Banking? How AI-Powered PFM Enhances Digital Banking & Money Management
AI-powered PFM constitutes the core of the digital banking experience. The tool offers access to the full suite of banking features, being seamlessly integrated with core banking systems. These AI-driven PFM tools in banking seamlessly integrate with core banking systems and Open Banking frameworks, ensuring automated financial management, real-time data analytics, and hyper-personalized banking experiences. PFM categorises transactions automatically with precise accuracy, alerting users to spending patterns and helping them manage their money better. It aggregates customer’s financial data from sources such as bank accounts, investments, insurance, and many more, ensuring a comprehensive view of their financial accounts. By providing intelligence, learning, and analytics to guide users to make more informed financial decisions, PFM ultimately establishes stronger engagement between customers and their banks.
How AI-Driven PFM Solutions in Banking Convert Insights into Actionable Strategies
To make a personalisation strategy profitable, banks need to keep customers engaged and take care of their financial well-being and need to use AI-powered Personal Finance Management (PFM) solutions to keep customers engaged and help them achieve financial wellness. PFM banking solutions analyse transaction data, spending habits, and credit history to offer personalized financial advice, automated savings, and debt management strategies. Banks could advise their customers with brand new strategies to keep their finances up, like setting up a personalised savings plan or they could offer them a specific financial product that can be beneficial for their current situation.
Hyper Personalised Communication | Targeting (Customer-Centric Approach)
As per studies, personalised communication is more effective than non-targeted marketing campaigns. AI-driven PFM banking solutions enable hyper-personalized customer engagement, which is proven to drive higher user adoption in digital banking. With PFM for banks, institutions can predict financial needs, recommend personalized products, and automate customer financial planning based on real-time PFM analytics. PFM allows banks to stay one step ahead to address their needs with timely solutions and recommend the best course of action at any given moment. It promotes upselling and cross-selling, boosting return on investment.
How CRIF’s AI-Powered Personal Finance Management (PFM) Solution Enhances Digital Banking
CRIF’s PFM solution tool puts personal finance at the heart of financial planning and gives your customers complete visibility into their financial health.
CRIF’s AI-driven Personal Finance Management (PFM) solution puts data-driven insights at the heart of financial planning. With AI-powered PFM banking solutions, banks can offer:
- Automated budget tracking
- Smart savings recommendations
- Personalized credit and loan suggestions
- anced financial literacy tools
CRIF's Personal Finance management solution offers banks and financial institutions an extensive overview of their customer’s financial status, along with budgeting, expense tracking, and financial planning tools. This solution allows banks to offer customers tailored financial guidance and recommendations, empowering them to make more informed decisions.
Why PFM Users in Digital Banking Engage More & Purchase More Financial Products
CRIF’s PFM solution leverages customer data, generates forethoughtful insights, and offers smart recommendations. It anticipates the customers’ needs and proactively suggests the next-best action. Cross-up selling opportunities are especially abundant when personalised offers are built into CRIF’s PFM tool, meaning the right customer is offered the right product at the right moment and thereby maximises customer lifetime value.
Empower your customers with AI-driven Personal Finance Management (PFM). Get started with CRIF PFM solutions today and enhance financial wellness with automated savings, budgeting, and personalized insights!
