M1 Finance has integrated investing, spending and borrowing into the one app offering customers an opportunity to manage their finances simply in the same place. Traditional finance organisations have struggled to integrate all financial management tools into the same digital platform. M1 Finance is unique in the fact it offers customers total financial management. It helps users build long-term wealth while simultaneously managing short-term spending needs. The success of M1 indicates the growing need from consumers for their finance apps to offer more tools and services at their fingertips. So, what can your finance brand learn from M1 and how can you create a finance app customers want?
M1 Finance: bridging the gap between investing and banking
M1 Finance customers can invest, borrow against their investment and spend money through their partnership with Lincoln Savings Bank, which offers users access to an insured debit card and checking account. Additionally, with their partnership with Celtic Bank, they also offer a credit card. Soon, M1 aims to offer mortgages and loans as they’ve newly acquired Buhl Bank. These partnerships and bank acquisitions offer M1 flexibility with the tools and services they can offer consumers in the one app.
M1 is successful as they are meeting the digital finance needs of customers. A study by PwC found 69% of customers say the most up to date technology is an important factor in choosing a bank or financial product. Additionally, 45% say this will only become more important, indicating finance brands will be competing for customers more and more through the digital services they offer.
Unlike many neobanks and fintechs, M1 Finance aren’t catering to the underbanked or unbanked market segments. Instead, they are targeting consumers who are already banking with large, traditional finance organisations that are being underserved by their digital platforms. This indicates an opportunity for finance brands of any size to retain customers and generate new leads by improving their digital services and tools.
“ 69% of customers say the most up to date technology is an important factor in choosing a bank or financial product. ”
What consumers want in a finance app
M1 is catering to the needs of consumers by offering many financial services in one place. Customers want financial management to be easy. By creating tools within your digital platform that empower consumers to do more with their money easily, your brand can generate greater leads, retain customers and gain a competitive edge.
So, what services are consumers wanting in their digital finance apps?
- Integrating biometrics
- Easy connectivity between financial apps
- Easy-to-access and high-quality customer service
- Alert systems that help financial management
- P2P integration
- Automated investing
The rise of the finance app
Digital platforms are becoming more important than ever. In fact, 55% of consumers have at least one full-service banking app, 40% have at least one peer-to-peer payments app, 17% have at least one stand alone budgeting app and 17% have at least one stand alone investing app.
With consumers wanting more digital finance options it’s critical your finance brand begins to cater to users’ wants. Expanding your digital services will help generate more leads, create greater customer satisfaction and build consumer relationships.