According to the BAI Banking Outlook: Trends in 2020 survey, roughly half of Millennial, Gen X and Gen Z consumers expressed a willingness to switch financial services providers for better banking apps and digital platform capabilities. Put simply, they value a better experience and more importantly will switch providers for one. Today’s consumer expects quick and reliable Read More
The research has not been exhaustive, but there is a 99.99 percent certainty that the predictions published in our industry for 2020, as well for the next decade, did not include the COVID-19 pandemic.Though most financial institutions have a pandemic crisis plan – proposed by the regulators since 2007 – few expected to break the seal on Read More
In the not-too-distant future, we’ll no longer have to drive ourselves to work each morning. Instead, a driverless car will ferry us to the office as we sit serenely in the passenger seat, catching up on the news and sipping a warm beverage.Banking services are heading the same way. The time is coming when we will have Read More
Payments are the largest source of non-interest revenue for many banks, yet the majority of institutions do not have an enterprise payments strategy. To succeed in the rapidly evolving payments landscape, banks must develop a strategy that incorporates consumer attitudes about payments, the growth of embedded payments and the convenience of contactless cards. Consumer experience. Financial institutions Read More
A shift is under way in how banks and other corporations adopt and apply new technologies. For the payments industry, ease of integration has become a primary focus and serves as both a driver and limiter of innovation.We surveyed roughly 160 treasury and banking executives in 2019 on payment trends and found that nearly two-thirds of them Read More
This will be a transformational year for acquiring banks that are focused on improving the value they offer to merchants while protecting consumers’ privacy. As the evolution of payments technologies continues, mergers and acquisitions are going to create new opportunities to improve payment solutions and value-added services.Acquiring banks, also known as merchant acquirers, allow businesses to accept Read More
We’ve heard the hype about mobile wallets for almost a decade. And heard it. And heard it. And yet ... the road to adoption has been slow. Passenger-pigeon slow. Tin-can-and-string slow. Ugly-beige-rotary-phone slow. The stats tell the story. The Bain/Research Now Retail Banking NPS Survey 2018 found less than one in ten Americans reported using Apple Pay Read More
To sell or to engage? Many financial institutions struggle with this question relative to customer onboarding. And we have an answer: Engagement wins. According to Javelin Strategy & Research, financial institutions can boost the profitability of new checking account customers if onboarding successfully engages them. That is: Fully engaged customers provide an estimated $212 more in annual Read More
In order to be considered customer-focused in all areas, including payments, many businesses have unintentionally created chaos in their back office. They’ve added new payment channels even as old methods, such as checks, have refused to die. Companies today may accept six or more payment types to keep everyone happy — and each channel has its own Read More
Faster, smoother, more-open payments systems are coming our way thanks to a little something called an API. That stands for application programming interface, which is what, exactly? You can think of an API as an automated way to deliver data or processes from servers to clients outside the walls. The programming interface keeps everything automated -- which Read More
Faster Payments. For all the talk leading up to and following the July 2017 final report of the Faster Payments Task Force, how many of us actually make or receive a faster payment on regular basis? The truth is, not that many bank and payments customers seem to execute very many faster payments. So will that change? In Read More
Sometimes industry self-regulation does a better job protecting consumers than government regulation does. The only viable way to curb outrageous and deceptive credit card foreign exchange fees is for the payments industry to police itself. Anyone traveling abroad using a credit card has been invited to pay in their home currency. It’s familiar. Most travelers accept the Read More
The next time you look at the chip on your debit or credit card, consider this: We will soon mark the three-year anniversary of the EMV liability shift for point-of-sale transactions in the U.S. The U.S. was the last major market to switch to EMV, a technology that has transformed the payment process for retail organizations; financial Read More
When the senior executives at Citizens Bank of Edmond, Oklahoma first considered signing up for Apple Pay nearly three years ago, the scenario resembled that faced by other community and mid-sized banks: lots of obstacles ahead. Not many retailers accepted Apple Pay—or similar mobile point-of-sale services—just yet. For starters, he upfront cost was high. Nor did the Read More
If you talk to your customers for any length of time, the topic of cryptocurrency invariably comes up. You even know how this scene goes because it probably played out more than once in your office, or that of a colleague, just last week. Your client perches in a chair, idly fingering your latest brochures that promote Read More
A new era in technology driven by the “Do it for Me” phenomenon is blossoming all around us—and “driven” can be taken literally, what with the advent of self-driving cars. Add to the list self-setting thermostats, self-driven vacuums, robo-investors, digital personal assistants: automation services powered by advances in machine learning, AI (artificial intelligence) and biometrics. Financial services Read More
Five decades after they were first unveiled in Swinging London as marvels of secure, cash-dispensing convenience, automatic teller machines are more vulnerable than ever—thanks to a wide array of attacks that include skimming devices, malware, intercepted communications, outright theft of the machines—and a new technique known as “jackpotting.” To thieves who pull this latest type heist, the Read More
Through modern history, banks have pretty much owned the payment business: the rules, the operations, the settlement, the technology advances and most of all, the revenue it throws off. That’s changing—but not nearly as fast, or if you’re a bank, as ominously as some predict. McKinsey, harkening to the Internet’s early days, notes that “the payment market Read More
The ever-shifting mix of cash, checks, ACH and electronic payments methods are now top-of-mind when people discuss today’s in banking—especially as consumers increasingly adopt electronic payments methods in their daily routines. And while demand for cash and cash-like payments instruments remains strong—cash in circulation was estimated at $1.6 trillion in 2016 and continues to grow—so too is Read More
For wholesale banks, one New Year’s resolution represents equal parts common sense and common good: to take the necessary steps to remain relevant to customers and profitable in 2018. But to do that, these banks must reassess their entire way of doing business. To start, they need to streamline their processes. They must also implement digital tools Read More
