Personal Finance Software Market Expected to Reach $4.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Personal Finance Software Market, By Product Type (Web-Based Software, Mobile-Based Software), By End User (Small Businesses Users, Individual Consumers): Global Opportunity Analysis And Industry Forecast, 2023-2032". The personal finance software market was valued at $1.4 billion in 2022, and is estimated to reach $4.2 billion by 2032, growing at a CAGR of 12.2% from 2023 to 2032.

Personal finance software is a tool designed to integrate the financial data of a user and segregate this information to deliver a desired analytical output for improved financial planning. This software tool utilizes a variety of financial data as input and can be implemented for varied tasks such as financial transactions, bank records management, investment tracking, budget management, portfolio management, and others.

Furthermore, rise in need to track and manage income and increase in dependency on the internet is boosting the growth of the global personal finance software market. In addition, increase in use of digital transformation technology is positively impacts growth of the personal finance software market. However, lack of awareness about personal finance software and increasing security concerns is hampering the personal finance software market growth. On the contrary, increased adoption of personal finance software among developing economies is expected to offer remunerative opportunities for expansion of the personal finance software market during the forecast period.

Depending on end user, the small businesses segment holds the largest personal finance software market share owing to, the increase in the adoption of personal accounting software in various small and home businesses to combine and separate financial data from companies to produce the needed analytical output for better financial planning. However, the individual consumer segment is expected to grow at the highest rate during the forecast period, owing to the rise in internet penetration and daily internet usage, which is catalyzing the demand for personal finance software to track and manage personal finance software market trends.

Region-wise, the personal finance software market size was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to the growing number of key market players in the region offering a favorable market outlook. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increasing consumer awareness regarding financial management, growing demand for transaction records, and increasing dependency on the internet.

The personal finance software market witnessed stable growth during the COVID-19 pandemic situation. Various companies adopted the work-from-home module during the pandemic. In addition, many companies decreased their investment in new technologies and services to manage revenues. Furthermore, many small businesses closed their business processes due to a lack of funds to sustain in the personal finance management software and some withheld all investments in advanced business solutions and tools due to the low return on investment.

In addition, the pandemic severely impacted the economies of major countries, leading to a rise in unemployment rates and surge in financial insecurity. Furthermore, this increased the demand for personal finance software as more people got habituated in analyzing their spendings. In addition, the increase in remote investments to ensure financial security due to the pandemic further invigorated the growth of the personal finance software industry growth. 

Moreover, IT businesses expanded product offerings and services to make them more widely available throughout the world. As a result, the rise in the number of Software as a Service (SaaS), cloud-based client interaction, remote connection, and collaboration services saw a large spike in new sign-ups across its entire product range. The integration of advanced technologies such as cloud computing , data analytics, IoT and API technologies, development of telecommunication infrastructures, and rise in number of tax payable citizens help the providers with new services and encouraging enterprises to adopt novel and innovative solutions. Software consulting technology has increased the efficiency of enterprises in decision-making processes with their investment strategy for software adoption.

In addition, digitization of industries and the evolution of the Enterprise 2.0 concept, which involves the use of a combination of social software and collaborative technologies for business processes. Owing to this global pandemic, many organizations are finding it difficult to meet the end users demands hence they are increasingly opting for software consulting solutions and services to accelerate service delivery. For instance, on February 2022, Synpulse launched its own technology subsidiary, which goes to market as Synpulse8 that helps to deliver a complete suite of services to clients in the financial services industry through the combination of technology advisory, technology engineering, implementation and ecosystem partner integration with keen outcome-based digital solutions.

Key Findings of The Study

• By product type, the web-based software segment accounted for the largest personal finance software market share in 2022.
• Region-wise, North America generated the highest revenue in 2022.
• Depending on the end user, the small business segment generated the highest revenue in 2022.

The key players profiled in the personal finance software market analysis are Quicken Inc., The Infinite Kind, You Need a Budget LLC, Microsoft, Moneyspire Inc., doxo Inc., BUXFER INC., Personal Capital Corporation, Money Dashboard, PocketSmith Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the personal finance software industry.