Personal Finance Software Market

Market Overview

The global personal finance software market size was valued at USD 1,167 million in 2021. It is expected to reach USD 1,912 million by 2030, growing at a CAGR of 6% during the forecast period (2022-2030). 

Personal finance software is a system that provides the user with several features, including the ability to create reports of the user's assets, keep track of their spending, and analyze their investment success. It also has many modules for processing financial data, such as generating asset plans and monitoring and reevaluating assets. Additionally, numerous banks and fintech firms use this software to manage their financial modules and boost efficiency, supporting market expansion. Personal financial software offers users various advantages, including online banking, report groups, check printing, mobile billing, and many more. Additionally, many banks use this software to decrease human mistakes and finish challenging operations more quickly and efficiently.

The primary factors propelling the personal finance software market's growth are consumer demand for tools to track and manage their money and the explosion of mobile applications worldwide. The market is growing as a result of enterprises putting more emphasis on digitizing their financial services as well as an increase in internet users around the world. However, problems with security and compliance in personal finance software, as well as the availability of open-source finance software, restrain industry expansion. More attractive chances for market expansion are anticipated to arise from the growing use of personal finance software in developing nations.

Market Dynamics

Global Personal Finance Software Market Drivers

Need to Track and Manage Income Combined with Growth in Mobile Application

Over time, the necessity to track and manage an individual's or a small business's money flow has expanded, resulting in a growth in the use of personal finance software. Because it can manage investments and even tiny transactions, this software has made managing financial details simple. To provide end users with real-time transaction updates and aid in money management, personal finance software can even be connected to internet banking. Personal finance software also offers several advantages like fast and rapid account reconciliation, setting a budget, the opportunity to pay bills online, and the capacity to manage and analyze investments. These advantages, therefore, aid the market acceptance of this technology.

To maintain effective operations across many sectors of operation, the market's end consumers are increasingly using personal financial software on mobile applications. It enables customers to cut back on wasteful spending and save money. Additionally, the penetration of mobile phone use is continuously increasing, primarily due to the mobile network's extensive coverage. Further, the availability of low-cost mobile phones and the growing uptake of mobile communication services in rural regions have promoted higher usage. Additionally, enterprises are increasingly utilizing mobile collaboration tools to boost their company's profitability, fueling the market's expansion.

Global Personal Finance Software Market Restraints

Availability of Open-Source Solutions 

The rising popularity of open-source software is restricting the personal finance software market growth for managing finances. Due to their limited financial resources, many individuals and small-scale organizations cannot purchase pricey personal finance software solutions. Because they don't need to make a capital investment, they use open-source technologies to manage their business operations and daily expenses. The market's expansion is hampered because it frequently serves as an incredibly cost-effective alternative for businesses with few resources and staff experts.

Global Personal Finance Software Market Opportunities

The Growing Adoption of Personal Finance Software Market in Emerging Economies

The developing economies of Asia-Pacific, Latin America, and the Caribbean (LAMEA) have strong development potential for financial technology (fintech) services, likely to propel market growth throughout the forecast period. Additionally, the continued internet and mobile phone usage increase in developing nations offer a wide range of market expansion opportunities. For instance, China surpassed other countries in 2017 when it came to adopting financial technology (fintech) services, demonstrating the worldwide trend of the growing sector. Additionally, China's mobile payments market reached USD 5.5 trillion in 2016, 50 times larger than the USD 122 billion markets in the United States.

Regional Analysis

The region-wise segmentation of the global personal finance software market includes North America, Europe, Asia-Pacific, and LAMEA.

North America and the Asia Pacific are Expected to Lead the Regional Market

North America will likely command the market while expanding at a CAGR of 5.31%. Major companies that provide cutting-edge personal financial software are based in North America, one of the most important markets for this product. For instance, Quicken Inc. and You Need a Budget LLC, two of the market's leading participants, are well-established in North America. Additionally, in other areas of this region, these players are increasing the range of products they offer. For instance, Quicken Inc. increased the selection of personal finance software available to Canadian Mac users in December 2017 by launching Quicken Canada for Mac and two additional product offerings, Quicken Starter and Quicken Deluxe.

To meet the end-user sector's different operating and development needs, vendors in this market have created cutting-edge personal finance software solutions. As a result, the market is anticipated to benefit from these lucrative chances. The end-to-end credit journeys in North American nations have been digitally altered, which has helped to create a uniquely tailored and user-friendly banking experience. Countries like the U.S. are already reaping significant financial gains from technological improvements and innovations in the financial services sector, including digital banking, digital lending, and other areas. Due to information technology improvements, the growing creation of dynamic and user-friendly user interfaces for websites and applications has changed how consumers prefer banking services.

The Asia Pacific is predicted to have a share of USD 459 million, growing at a CAGR of 7.27%. In Asia-Pacific, the usage of financial applications, like mobile banking, mobile payments, peer-to-peer transfers, personal budgeting, and investment apps, has skyrocketed, driving the market's expansion. In this region, more people are turning to mobile apps for their banking and financial needs, increasing the prevalence of mobile phones and opening up a wide range of growth potential. The governments of several nations are also taking steps to encourage the development of the market-opportunistic FinTech business. For instance, the South Korean government introduced an open platform in 2018 to encourage companies to create and test personal money management apps.

A sizable user base that routinely uses digital banking, with a sizable portion in nations with rapid economic growth like China and India, as well as a quick increase in internet usage on computers, smartphones, and tablets, all contribute to the market's expansion. As more start-ups and government programs are implemented in developing nations like China, India, and Japan, there is increasing adoption of financial technology, which broadens the regional market.

Segmental Analysis

The global market for personal finance software is bifurcated across the product type, end-user, and region.

On The Basis of Product Type

As per the product type, the fragments include web-based and mobile-based software. 

The web-based software section is forecasted to grow at a CAGR of 5.5% and hold the largest market share. Due to its ability to track data across all of a user's financial institutions, web-based personal finance software has become increasingly popular. Web-based personal finance software offers high security because it is supported by anti-virus and anti-malware solutions, causing the market to develop. Additionally, advanced mobile-based programs like Mint.com enable users to input their financial data, including bank account and credit card information, loans, and debts, and track real-time transactions. The presence of numerous appealing products fuels the market's expansion. Additionally, the market is presented with a wide range of chances due to its rising usage among business verticals. For instance, to enable customers to track their Bitcoin holdings, the U.S.-based Bitcoin provider Coinbase joined with Mint, Intuit's web-based personal finance software provider.

The mobile-based section will hold the second-largest share. Mobile applications with built-in personal financial software are accessible to guarantee effective operations in various industries. It has helped people cut back on wasteful spending and save money. The advantages of this software over web-based software, like instant online & offline access, push notifications & instant updates, productivity enhancement, cost savings, and others, have raised the demand for it in the individual consumer segment. Due to this, the significant players launched their goods simultaneously on desktop and mobile. Additionally, the adoption of mobile-based personal financial software is boosted by the ongoing increase in mobile phone penetration brought on by the mobile network's extensive reach. Furthermore, the market has a lot of prospects thanks to the growing use of mobile phones in emerging nations.

On The Basis of End-User

The fragments are small businesses and individual consumers based on the end-user. 

The small business section is predicted to advance at a CAGR of 5.6% and hold the largest market share. Many small and home businesses use personal finance software to combine and separate financial data from companies to produce the needed analytical output for better financial planning. Identifying spending patterns, assisting with debt repayment, and keeping track of financial objectives enable business users to make wiser financial decisions. As it provides efficient planning and control of the influx and outflow of monetary money, personal finance software aids users of small-size businesses in effortlessly managing their business operations and funding. This segment is therefore driving the use of this software. Additionally, it produces reports and bills depending on data. Due to the enhanced security features provided by the products, user-friendliness of the software, cost-effective solutions, and simplicity of handling the finances of the firm and its employees, small business users are the market's primary consumers.

The individual consumer section will hold the second-largest share. The individual consumer market uses personal finance software to keep track of a person's income, expenses, credit cards, investments, and bank accounts on a smartphone or computer. It can effectively handle financial transactions by assisting a person with budgeting their monthly expenses. There has been a rise in internet penetration and daily internet usage. These variables fuel the demand for personal finance software to track and manage financial activities. Additionally, this program manages all financial facts simply because it can keep track of investments and small transactions. Further, it can be connected to internet banking to provide real-time transaction updates, assisting the individual customer in managing their finances and boosting its uptake within this market.

Recent Developments

• In 2022, in Atlanta, Georgia, the Communications Workers of America (CWA) and Microsoft are initiating "Get Connected," a campaign to increase participation in the FCC's Affordable Connectivity Program. This alliance expands upon the ground-breaking labor neutrality agreement between CWA and Microsoft, which was made public in June and includes a pledge to work together on initiatives to promote technology use and skill development.