In the six years since Apple launched its iPhone, smartphones have imbued consumers with always‐on, always‐with‐me, real‐time expectations that create an urgent need for the financial services industry to break free of 1980s thinking about personal finance management (PFM) and redefine it for the 21st century. Today, Javelin estimates only 21% of U.S. consumers mix and match PFM software like Quicken, in online banking, and from websites. But PFM is primed to evolve from niche products for do‐it‐yourself budgeting and investing to virtually ubiquitous, specialized online and mobile tools that will help Americans make smarter everyday financial decisions. In addition to sizing the current PFM market, this report:

• Evaluates 17 specific PFM features designed to help consumers as they spend, shop, buy, and plan.
• Analyzes four tiers of PFM features and the implications and action steps for each tier.
• Details how to tailor PFM features to cater to coveted segments such as the mobile‐minded Moneyhawks™, Gen Y.2™ young adults, high‐income Americans, and Latinos.

Primary Questions:

• How many Americans use PFM software, online banking PFM, and PFM websites today?
• How can PFM players successfully serve PFM to a mass audience rather than just a niche audience of do‐it‐yourself budgeters and investors?
• Why will PFM play a critical role in transforming customer service from reactive to proactive?
• How can PFM be integrated into the heart of online and mobile banking?
• How does PFM help financial institutions, PFM providers, billers, and others earn a return on investment?
• What PFM features are likely to gain traction fastest with the greatest number of consumers?
• How do you tailor PFM to suit different consumer segments?

• This report primarily is based on data collected online from a random‐sample panel of 3,000 consumers in August 2012.