With the release of Quicken 2007 yesterday, the annual PFM-upgrade season is in full swing. Microsoft beat Intuit by a few weeks with the launch of Money in mid-July. Although still one of the more popular consumer software applications, new PFM releases don't garner near the interest of a decade ago.

Why? Because online banking has made the programs irrelevant for most consumers, unless they run some type of home business or are off-the-charts organized. Also, like many packaged software applications the "upgrades" have little that is truly new and different for the average user. That's not because the software developers have grown lazy, it's just that about every useful feature was incorporated a decade ago (Quicken is celebrating its 23rd birthday this year).

Interestingly, in an attempt to appeal to a broader cross-section, the companies both use "back-to-basics" appeals in their press releases (here for Quicken, here for Money). Walt Mossberg's Wednesday column, Mossberg Solution, echoed this theme in evaluating the "basic" versions of each, finding Quicken Basic to be somewhat superior to Money Essentials.

Above is a screenshot of Money's budgeting worksheet (click for closer view).

However, we see little likelihood the programs will increase their market share. As banks add basic PFM functionality and long-term archives to online banking, the packaged apps become even less necessary for the broad market. That said, the installed PFM user base is an important banking segment that should not be ignored.

For a more thorough analysis, along with usability lessons from the packaged apps, be sure to read the next issue of Online Banking Report (#131), due out in mid-August.

—JB