Personal Finance Management (PFM)
is the Future of Online Banking
A PFM Introduction for Retail Banks
Thought-leaders in Banking agree PFM is the future of online banking
“PFM’s critically important, it’s a vision of the future of online Customers love PFM, particularly during tough economic times,
banking”, and reward the bank that offers it to them.
Emmett Higdon - senior E-Business analyst at Forrester who says about
50 percent of the banks Forrester talks to are interested in PFM.
The US is leading the way with more than a hundred
retail banks rolling out PFM solutions in the past year.
Europe is behind the USA in terms of PFM awareness as only
a handful of credible PFM offerings have emerged in Europe
and most markets still have no PFM service. BBVA (Spain) and
Íslandsbanki (Iceland) were first to offer comprehensive PFM
functionality to their customers and in both cases PFM became
an instant success. ING (Netherlands) also recently started
“Javelin data illustrates that financial institutions that install
compelling personal finance management tools stand to reap
“BBVA‘s Tú Cuentas [online PFM solution launched by the the benefits of increased customer loyalty, higher usage, lower
Spanish bank BBVA] shows what next generation of online costs and added revenue.“
banking will look like“, Javelin Strategy & Research, September 2009
Forrester, July 2009
What is Personal Finance Management (PFM)?
PFM is a new generation of personal finance solutions. users’ bank accounts and credit cards, present the information
In essence, PFM is highly automated, web-based personal finance visually and provide various intuitive tools to help users under-
software with the ease of use and social dimension of web 2.0. stand and manage their money. The best known example is the US
PFM applications automatically categorize transactions from site Mint.com, with over 3 million users.
Web 2.0 + Personal Finance
Major Benefits for Retail Banks:
Brand Building: Many people see PFM as a revolution and Acquisition: PFM can be a powerful acquisition tool, especially
think highly of their bank for offering it, particularly if it is the when bundled with other offerings (such as credit cards).
first mover. In a nutshell, PFM is what customers want. Engagement: More and more people prefer never to visit
Retention: In a time were loyalty is on the decline, PFM is branches. PFM is a major new channel for engaging with your
proven to dramatically improve customer retention in retail customers and earning their trust.
banking. Efficiency: PFM is a big leap towards the “virtual branch”
Cross-selling: PFM usage says a lot about customers’ as personalized advice, product offers and self-service are
financial situation and goals for the future, bringing unique natural to PFM.
cross-selling opportunities. Lower cost: PFM tends to increase use of debit and credit
cards and decrease use of cash and ATMs.
Meniga PFM Application Overview
Meniga is a Nordic company focusing solely on PFM. Since 2008 it has been building a best-of-breed PFM application that rivals any
other available in the world today, in terms of functionality, usability, scalability and security.
The Meniga PFM Application is specifically designed for European markets and is available as white-label software or SaaS.
It is a stand-alone web application that has, in every aspect, been designed for easy adaptation and integration to banks’ online
banking system and branding policies. Product highlights include:
Account Aggregation that categorizes all spending with high accuracy and dynamically
Users get a holistic view of their income and spending by adapts to users’ spending habits.
aggregating data from all their bank accounts and credit cards.
Sophisticated Budgeting System
Spouses can share an account for a complete overview of the
Future income and expenses are automatically projected based
on users’ historical data. Users can modify the budget to match
Intuitive Web 2.0 User Interface their own spending goals and income and spending outlook.
Users can visualize their spending, income and budgets through Meniga also helps users stick to their budgets through various
various graphs, reports and other means. Instructional video clips notifications and visual spending reports.
are embedded in the web application to help users get started.
Financial Fitness and Life Goals
Fun and Effortless Financial Management Meniga helps users assess their financial fitness and offers
With the goal of appealing even to those who usually avoid facing structured guidelines for how they can improve. One important
their finances, Meniga uses social curiosity, humor, gaming and aspect is encouraging users to set financial “life goals” (such as
social networking concepts to keep users engaged. One example “Save for a car” or “Reduce debt”) and map a course to reach them.
is allowing users to anonymously compare their spending with
iPhone, Android, J2ME and Mobile Web Applications
that of other users. Through PFM, managing their finances
Users can access Meniga on the go from mobile browsers or
becomes effortless and fun.
through native mobile clients for iPhone, Android and J2ME
Highly Accurate Categorization devices.
Automatic categorization of users’ transactions is at the heart
of any PFM application. Meniga has built an advanced system
Meniga became an instant success in Iceland, where it is used by
over 5% of all households
Meniga went live in late 2009 in Iceland in partnership with is now a fun exercise. When we get the weekly emails from
Íslandsbanki, a retail bank with 25% market share. PFM is highly Meniga about our economic situation, we encourage each other
relevant in Iceland as it is a country hit hard by the economic to keep up and do even better.”
downturn. Man in his 50s
“Offering Meniga to our customers has been an unqualified Over 20% of the bank’s online users signed up for Meniga
success. Our customers love Meniga and for the first time in years within 6 months of launching.
we are seeing significant increase in online banking registrations.
Over 75% of new users login again within 2 weeks and over
Meniga has in a very short time become one of Íslandsbanki‘s
25% visit the site more than 5 times in the first month.
most important strategic partners in retail banking.“
Vilhjalmur Alvar Halldorsson, Íslandsbanki‘s Executive Director of 89% of users said they would recommend Meniga to their
88% of users say they will use Meniga regularly in the future.
“Since we started using Meniga we are, for the first time, equally
70% of users say their loyalty to the bank has increased as a
focused on saving and it is going great. What once was a problem
result of the bank offering PFM.
Some of the Íslandsbanki / Meniga advertisements for the Icelandic market.
Meniga Learn more about the
Sturegatan 58 Meniga PFM Application or
114 36 Stockholm schedule a demonstration
Sweden for your organization.