Cisco through its Cisco Internet Business Solution Group has published a very interesting and detailed study on the expectations of U.S Consumers towards their banks, especially for the younger generations: Gen X and Gen Y. Here are the key learnings for me but I really encourage you to read it in detail and make your own selection (Give me your feedback in the comments!)
All graphs and statement are quoted from the CISCO study, my personal comments are in blue.
Gen Y and Gen X are the one that feel more strongly they need help managing their finances. While the economic situation plays a major role as these generations are the one feeling the most pressure, it can also be noted that they are also the one whose needs are less served on a global level (personal financial management). A strong emphasis for financials services company is currently put on investment/retirement advices, whereas the need for GenY and GenX are for an important part centered on budget management, loans and credit.
Gen Yer are also the one with the most important usage of PFM tools, which they use for managing their budget (categorizing their expenses, control overspending,…). These tools are in majority provided by their banks or Quicken and Money (even if it is not released anymore). The numbers for Mint are impressive, considering the fact it’s a new player, with 8% for GenYer.
The appeal for PFM tool on mobile is relatively low but the study does not specify if the question was asked to all respondents or to PFM user. My guess is that existing users have responded very positively to the question. If we look at the App Store for the Iphone, out of the first 10 free apps, 7 are PFM tool (+ 1 for tax in the middle of tax season).
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