- Consumers shouldn’t make financial and budgeting decisions based on the actions of others. I don’t believe that folks should model their spending habits according to others for one simple reason – most people don’t have good spending or budgeting habits. Everyone needs their own custom-made plan and the good news is that banks are in a position to help consumers build this plan.
- Adoption is critical. The quality of the information displayed by a comparison tool will depend on multiple factors and one of these factors is critical – adoption. In order for relevant info to be displayed folks have to use the tool. The more data points thrown into the pie the better.
BMO is in a position to take advantage of this tool. They have an entry point to provide financial education to their clients. However they have to ensure that it is properly positioned and pitched within online banking and other channels. Additionally, BMO is large enough that with decent adoption of MoneyLogic, they can collect enough data points and provide relevant info to their customers.Stay tuned for an upcoming report on PFM that will have a section in it that addresses social and community features.