Personal Finance & Money Management Software Developers in ...

Revenue for personal finance software has been stagnant over the past five years. Though demand for industry products grew during the recession as consumers attempted to tightly manage their budgets, this demand was mostly for free, online-based software. In the coming years, demand for personal finance software will continue increasing, specifically from commercial banks, though revenue will continue to remain stagnant. For these reasons, industry research firm IBISWorld has added a report on the Personal Finance and Money Management Software Developers industry to its growing industry report collection.

Los Angeles, CA (PRWEB) June 25, 2012

The Personal Finance and Money Management Software Developers industry is currently in a period of stagnation. Revenue has decreased an average of 0.1% annually in the five years to 2012, despite a 2.2% increase in 2012 to reach $1.16 billion. While the recession of 2008 and 2009 forced many consumers to use industry products to budget tightly, this coincided with the development of free-to-use web-based personal finance programs, says IBISWorld industry analyst Dale Schmidt. Revenue is generated by these programs through lead generation fees, which are generally less than the purchase or subscription fees charged for programs that are not web-based. In addition, the economic recovery from 2010 through 2012 has been skewed toward high-income households, which are more likely to stop using industry products when their incomes increase, and instead hire a financial advisor.

The Personal Finance and Money Management Software Developers industry has benefited from the increased use of online banking, though. Commercial banks license personal finance software from the industry to integrate into their online banking platforms. In addition, industry players are developing applications for smartphones and tablets to allow customers to operate personal finance software on the go. Both of these developments will buoy industry revenue by opening new markets. Also, the industry will benefit by switching predominantly to the software-as-a-service (SaaS) business model, continues Schmidt. The SaaS model charges users a subscription fee to access software installed on the publisher?s servers, rather than charging a one-time purchase fee to install the software onto the customer?s computer. The model will allow operators to make incremental updates and patches to their software, which will both smooth the transition to updated software for consumers and allow the publishers to generate a constant revenue stream.

The industry will continue to struggle to grow revenue in the five years to 2017. This industry is highly concentrated. The specific nature of the industry?s products leads to a higher concentration than other software-based industries. The largest major player, Intuit, specializes in personal finance products and has created a dominant market position. The industry is expected to consolidate over this time as the two biggest players, Intuit Inc. and Yodlee Inc., buy up smaller competitors to gain their customers and patents. For example, Intuit acquired Mint.com during 2009. Those two players also control most of the commercial bank licensing business, which puts them in a strong position to continue to dominate in the years to come as the industry becomes increasingly reliant on bank licensing fees. For more information, visit IBISWorld?s Personal Finance and Money Management Software Developers in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry create personal finance management software. Products are aimed at allowing users to manage disparate financial holdings. Often the software will provide single-password access to multiple sources and provide some account aggregation functionality. This industry includes both packaged software and online-only software.

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About IBISWorld Inc.
Recognized as the nation?s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/6/prweb9634135.htm

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