Personal finance management tools have an edge over mobile banking apps

Millennial and Gen Z folks pay a lot of attention to independence, whether it is for themselves or their financials. They know that financial planning has become as important as getting an education to thrive in this fast-paced world.

This digital-savvy generation is not inclined toward hiring experts or managers to keep their financial health on track because the digital ecosystem has simplified this journey for them, making financial planning possible at the click of a button.

The ecosystem of payment enablers, mobile banking, and account aggregators is thriving and has created a seamless digital journey for individuals. Several applications and software tools are available to assist in monitoring your earnings, controlling your expenses, and maintaining assets.

This ecosystem uses several tools to create a personalised experience for a user such as personal finance management (PFM) tools. Mobile banking apps are already integrating PFM tools, and most plan to do so to provide a better customer experience.

These tools manage your finances by grouping transactions into categories and adding accounts from various institutions to a single screen. They analyse and understand an individual’s financial behaviour and help in increasing the overall value of their financial portfolio by providing relevant insights.