Jansen Perdue, 30 Under 30 member, Hoosier Hills CU
I’ve spent the majority of this year evaluating everything my credit union offers. As a member of Filene’s 30 Under 30 group I’ve been able to see the industry as a whole, looking at a younger generation of credit unions members, and specifically what products and services will look like in the future. I’ve tried to compare and contrast my credit union to the rest of the industry, and have wrapped my head around a lot of it, but still have some musings on card services, mobile banking, and online delivery.
Card Services
At the beginning of every month I spend a good hour perusing a spreadsheet with the last month’s debit/credit card figures. I check how many purchases were made during the month, break down the percentages of interchange income, look at overdraft income and review other numbers that reflect the overall health of our card program. I try to project what I think the months ahead are going to look like and so far my numbers aren’t too far off. The thing is, I just have a feeling the game is going to change – and change rather quickly.
What will happen to interchange income every month if there is a move to touch-and-go payments? How will this affect the transaction percentage breakdown and will everyone get a piece of the pie? What about biometrics if security concerns start to outweigh convenience? Will the cost of implementation become too significant? These are questions I don’t have answers for but am eager to watch as the answers unravel.
The Mobile Device
Knowing that tomorrow’s, and really today’s, CU members expect access anytime to their accounts, the future of the mobile device seems to be wide open. This benefits the credit union industry because transaction costs are minimal and new markets may emerge. As the mobile device continues its march towards a do-it-all utility there are still a few things to consider:
- How will regulations affect the credit union’s involvement in the transaction process?
- Will security concerns hamper the mobile device’s potential to drive the industry?
In my opinion, the biggest question will be answered by the mobile providers, and that question is: How do you get everyone with a mobile device equipped with a data package? That is the main barrier for entry, and when mobile providers figure this out financial institutions (and non bank-led mobile providers alike) should reap the benefits.
Online Banking
As widely popular as this product already is to the credit union industry, its popularity and rate of adoption will continue to increase. Traditional online banking (account inquiries, transfers, bill payment, etc.) are being revolutionized into a more user-friendly and customizable product. This applies to commercial members in addition to traditional members. So, as the internet continues to facilitate new opportunities for consumers to do business, credit unions must be quick to engage new technology and package it for a new generation of users.
Post a comment