The Crucial Data Missing from Online Banking... and Customers Would Love to Know

The Crucial Data Missing from Online Banking... and Customers Would Love to Know

Xavier Marcillac

VP Sales APAC at Strands

Views 474

The Crucial Data Missing from Online Banking... and Customers Would Love to Know

02.03.2016 11:15 am

When I log into my online banking, I always find two account balances: the one I see on the screen (duh) and the one I need to figure out in my head (ouf!). The worst part is, neither of them are accurate or satisfactory...

“How much money do I have? I mean, really?” I'm asking when I log in. Keyword: really!

As a user, what I want is to have my financial commitments already factored into the figure I see, instead of just my account balance. I’d like to know how much I can realistically dispose of. Similarly, I’d also like to know how much I can actually save every month. In an ideal online banking world, I would have a holistic view of my entire financial situation, which means aggregating all my accounts (but that's a story for another post...)

Basically, what I want to see as soon as I log in to online banking is what I'll call my “OK-to-Spend” amount. How much can I spend (or save) guilt-free?

HOW TO CALCULATE OK-TO-SPEND

The basic calculation is relatively easy:

[ OK-to-Spend ] = [ Income ] – [ financial commitments ] (i.e. pending transactions, upcoming scheduled payments and direct debits)

Adding a bit of intelligence provides additional guidance that is highly valued by the customer:

[ OK-to-Spend ] = [ Income ] – [ financial commitments ] – [ contributions to Savings Goals (if any) ] – [ identified spending patterns ]

“The contribution to Savings Goals” refers to virtual piggy banks where the customer can provision money for specific future expenses or investments. As these are serious “contributions”, the amounts should be subtracted from the disposable amount. By the way, these virtual buckets can actually become real savings accounts that are instantly created and provisioned by the bank.

We all have spending patterns we are more or less aware of. I have a rough idea in my head (or in the Excel spreadsheet I built a few months ago and haven't updated since!). I would love my bank to shed more light on my spending patterns and use them to help me manage my money better, wouldn’t you?

 

UPGRADING THE DIGITAL EXPERIENCE

Naturally, my OK-to-Spend is the very first figure I’d like to see in my digital banking home screen. Next I’d like to take action on it, for example saving that spendable amount with just one click.

What if I could even see what's OK-to-Spend without logging into my bank's mobile app at all? If I can access LinkedIn, Facebook and Twitter (containing all my valuable social relationships) directly on my smartphone, why shouldn't I be able to quickly check my valuable OK-to-Spend? Or receive a notification at just the right moment - in the middle of a shopping trip, for example?

Actually, on my mobile, OK-to-Spend becomes a financial advisor on the go. A quick check lets me know if I can afford the GoPro I’ve been looking at or if it is the right day to book a long weekend in Thailand.

With OK-to-Spend, interaction with my bank becomes more frequent, contextually helpful and aligned with my everyday life needs. But, it's only one part of a holistic PFM solution - learn what else is needed for a complete digital banking experience in our white paper, The Essence of Digital Banking

Latest blogs

Ian Johnson Marqeta

UK finance finds that 7.4 million in UK living "almost cashless" lives

These findings show that even before COVID-19 struck, digital banking was increasing exponentially. As more people adopt online and mobile banking, the demand for greater personalisation, flexibility and value that consumers expect from their Read more »

Ian Bradbury Fujitsu UK

UK Finance's UK Payment Markets Report - Comment from Fujitsu

Over the past months, businesses have had to rapidly move away from physical cash in order to provide consumers with a safer service. However, this data shows us that a gradual movement away from cash in society started long before the Read more »

James Turner Turner Little

Protecting yourself against a recession

The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted recession is considered to be the Read more »

Alan Cole JHC Financial

Every Cloud: Covid-19 and the opportunity for digital transformation

Faced with tighter regulations and changing customer needs, over the last decade Wealth Managers have not had it easy – but with the development of new technologies, many have been able to create efficiencies, reduce costs and shrink operational Read more »

Nabeel Irshad Mastercard

Two sides of the same coin: Financial and digital inclusion

The issue of how to tackle financial inclusion has long been a part of the conversation in banking and financial services circles. Regulations have ledto the UK’s biggest banks having to provide ‘basic bank accounts’ to cater for those who do not Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel