Simplifying Cash Flow for the Kitchen-Table CFO

Shortcomings in projecting cash flow are undermining mobile banking, where small screens and the need for on-the-go decision-making often force consumers to reach for pen, paper, and a calculator before they can pull the trigger on a “digital” transaction. Although exact cash-flow projections are unattainable, banks and credit unions can take six substantive steps forward by shifting the focus from do-it-yourself tools, targeting the underlying question of what’s “safe to spend,” and compiling and presenting relevant data the bank already knows in ways that consumers can understand at a glance. Javelin’s user experience review provides examples of both challenges and promising approaches from Bank of America, BBVA, Chase, HMBradley, Huntington Bank, Morgan Stanley, One, PNC Bank, USAA, and Wells Fargo.

Key questions discussed in this report:

• Why should FIs project cash flow rather than letting consumers do it on their own?
• What can FIs do to improve the accuracy and confidence in cash-flow projections?
• What kinds of data could FIs collect and present to improve cash-flow confidence?
• What role do envelope systems, gamification, and alerts play?
• What can FIs learn from their rivals and neobanks?