Credit Unions Poised to Capitalize on Consumers’ Demand for Emerging Retail Products and Services TAMPA, Fla. (April 1, 2013)
As dynamic new technologies emerge in retail financial services, research shows the evolving consumer base looks to financial institutions first to introduce new products and services. Credit unions can respond to these opportunities by combining existing offerings with next-generation tools and payment forms to reframe relationships with their members.
Retail Financial Products and Services: Capturing New Value Paradigms for Credit Unions,” a Mercator Advisory Group white paper sponsored by Card Services for Credit Unions (CSCU), describes the evolution of the financial services industry, dubbed “Banking 2.0,” in which developers of emerging financial services are anxious to provide alternatives to legacy banking services.
Interestingly, descriptions of the emerging consumer-centric retail deposit services often echo the principles of credit unions, with products that put the consumer first by using new technologies that support usability, convenience, real-time access, interactivity and portability,” said Bill Lehman, vice president of Portfolio Consulting Services, CSCU.
The financial services market in the United States is looking for that better idea of how to create higher value transaction accounts,” says Patricia Hewitt, director, Debit Advisory Services, Mercator Advisory Group. “The traditional approach of vertical product integration is giving way to new thinking about usability and relevancy across lifestyle-oriented segments.”
Credit unions can begin adoption of Banking 2.0 by implementing the following strategies:
- Use technology to obtain and apply a deeper understanding of member household segments to account management services and account acquisition processes.
- Assess current products and services to improve convenience, flexibility and delivery channel reach.
- Introduce new personal payment products into debit card portfolios to expand cash replacement capabilities.
- Provide tools for household budgeting by offering a variety of credit products and debt repayment tracking and management services.
Details of the white paper will be presented to credit union executives at CSCU’s 2013 Solutions Conference, April 24–28 at the Renaissance Vinoy Resort & Golf Club in St. Petersburg, Fla. In a presentation entitled, “Analyze, Adapt and Thrive,” Patricia Hewitt, director of Debit Advisory Services for Mercator Advisory Group will discuss emerging revenue streams for products and services as market forces continue to change the face of payments in a post-Durbin era.
Credit unions can access the complete white paper at www.cscu.net/whitepaper