The personal finance industry encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax & estate planning services as well as financial advice and consulting.
The global personal finance industry is projected to experience a compound annual growth rate of 11.5% between 2020 and 2022, with North America leading the pack. This can be attributed to rising per capita income levels, increased demand for financial products and services, as well as progress in digitalization initiatives.
Moreover, the rising demand for internet services and rising cloud computing are other factors driving the global personal finance software market. These trends are anticipated to expand its penetration rate and significantly contribute to its revenue generation over the forecast period.
EMR’s analysis of the personal finance software market reveals some key trends that are expected to influence its growth over the coming years. These include rising per capita income, an increasing need for financial services, and an increase in smartphone users.
Data Breach and Security Issues Limiting the Growth of the Personal Finance Software Market
Therefore, consumers remain wary of online financial platforms due to various safety concerns including data breaches. Older age groups tend to be more conservative when investing in digital platforms. This will likely limit the growth of this market in the near future; millennials however are more open to using these services.
COVID-19 Has Impacted Global Personal Finance Mobile App Market
Since 2015, personal finance mobile apps have seen an uptick in usage due to COVID-19’s impact on traditional industries and the layoffs of employees. As a result, consumers have turned to mobile platforms for fast money loans.
Reports indicate the global personal finance mobile app market will reach $16 billion by 2022. This growth is attributed to rising smartphone usage and improved financial literacy levels.
To maximize the potential of the personal finance mobile app market, developers are creating innovative and scalable apps that can adapt according to changing consumer needs. Doing so will improve customer experience and boost their satisfaction levels, ultimately driving the market growth.
Major companies operating in the personal finance software market include Buxfer Inc., Doxo Inc., Money Dashboard, Microsoft Corporation, Moneyspire Inc., The Infinite Kind, You Need a Budget LLC, and Quicken Inc. Each of these firms is employing various business strategies to maintain their position within the industry.
The global personal finance software market is dominated by North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region is expected to experience high growth rates in the forecast period due to rising financial vulnerability and well-established companies from this region offering global propositions of financial services across the world.