Q2 assesmnet 2 finicial services

Question (2): Based on what you have learned about customer satisfaction, FIS competition, and digital banking in financial services field, read the following case study and answer the questions. (4marks) Even though personal financial management (PFM) tools have been available for more than a dozen years, more than half of consumers still use old-school methods of tracking their finances like pen and paper (38%) and spreadsheets (20%), according to RFi Group. This is an opportunity for banks and credit unions to offer personal financial management (PFM) tools. Traditional banking providers might fear that firms such as Mint and Quicken have already comered the market on PFM, but that's not the case. The RFi Group found that more than three-quarters of consumers would prefer PFM tools offered by their primary financial institution, compared to just 6% who say they would prefer PFM tools come from non-bank third-party providers. Unfortunately, those consumers who do use PFM tools from their bank and credit union are not impressed. Oracle found that consumers are more dissatisfied with personal financial management services (along with investment management services) compared other banking services "Whether a retail bank sees PFM services as a core part of its strategy or not, they play a vital role in customer retention," Oracle wrote in a report on digital banking strategies. "Banking providers can't afford to ignore this decline in customer satisfaction. "The message is clear: banks and credit unions can ignore PFM no longer This article was originally published on June 20 2018 by The Financial Brand Questions: Questions: 1 What is the role of PFM according to your understanding from the case? Explain at length with evidence from the case. 2. Who are the competitors of banks here in this case? Do customers trust those competitors and why? 3. "The consumers would prefer PFM tools offered by their primary financial institution, compared to just 6% who say they would prefer PFM tools come from non-bank third-party providers. From your point of view, Do you prefer PFM service from primary Fis or from non-bank third party and why