Data humanizes banking. Nobody loves to track, budget, and reconcile – Ugh! But people love to know they are on track, free to go about their lives, and safe from financial pitfalls. This has always been the promise of Personal Finance Management (PFM) software. Real time data from a digital core is the key to humanizing banking – and in today’s digital, always on world, the promise of PFMs is in reach.
Imagine having a digital record of every transaction you’ve ever made. Now imagine being able to anonymously benchmark that data against people like you, and people you aspire to be like. Combine that with a preference engine that understands you, your peer’s and your aspirants wants and needs. Match that in real time with intelligent offers, and geo location based activities, so that walking into a mall, or stadium, or auto showroom, your bank frees you to make intelligent, transactions – that match you, your goals, and your means. Real time data from a bank’s core banking system humanizes a bank’s role by providing the actionable insight at the time it is needed – or even in anticipation of the need.
The key to a modern PFM is real time data, anticipatory advice, and intelligent automation. In fact, PFMs might be called AFMs or AIFMs today (Automated or Automated Intelligent – Financial Managers). And core (pun intended) to an AFM is a truly, real time, all the time, digital bank.
Humanized banking through secure access to real time data puts banks in the role of advisor versus being just another provider of commoditized banking transactions. Emotion still plays its role but the data to support daily life eliminates the need of having to track, budget, reconcile, and worry. The key to all this is not just digital channels, but also a digital core. Digitization from the customer to the core brings the customer experience to life. Without an open API, event driven, real time, digitized core, the customer experience suffers from the lack of actionable data, and a bank’s role is at risk of being commoditized.