Are Payments the New PFI Indicator?

Sponsored by CO-OP Financial Services

Becoming the primary financial institution for members is about serving their most basic financial needs. And, for as long as many of us can remember, that has meant offering more branches and winning the primary checking account.

While checking remains vitally important to members as the source of debit, the PFI game has fundamentally changed in the mobile/digital age. The race to become top of wallet for payments is on.

Mobile Madness

U.S. in-store mobile payments are expected to advance at a 40 percent compound annual growth rate and will hit $128 billion in 2021. Digital transactions are projected to reach $726 billion worldwide by 2020, according to Business Insider. 

But it’s not just that we’re using our devices more now to pay. Innovations like digital wallets and P2P networks are changing the way we pay.

So, what opportunities does this new normal bring, and how can credit unions deepen their digital/ mobile relationships with members?  

The Perfect Payment

We surveyed attendees of our THINK 17 conference on what consumers expect from payments today – here’s what they reported:

1. Ease – payments should be frictionless
2. Simplicity – fewer clicks, set-it-and-forget-it utility
3. Speed – real-time processing
4. Reliability – payments have to work every time – no false positives
5. Airtight security – in the age of social media this is tough, but essential
6. Intuitiveness – personalized experiences build trust
7. Convenience – helpful, even empowering
8. Accessibility – anytime, anywhere, any device

The Credit Union Advantage

Meeting all these expectations is challenging, but credit unions have a distinct edge: stronger member relationships, which means better data. 

For example, we know if members serve in the military or as elected officials, are educators or hospital employees. We also know if they have bill pay, how their direct deposits have changed over time, and when they open a VISA account with another FI.

And, we know they want to be rewarded. Numerous studies show the power of a well-executed loyalty program.

In short, we have all the data within our systems to understand and meet the evolving needs of digital consumers. And, while digital transformation is a complex undertaking, partnering with the right technology, processing and consulting providers can accelerate your success.

Ultimately, moving at the speed of fintech requires insights, scale, innovation – and vision. The investments you make – and alliances you form – today will have a lasting impact on member engagement and loyalty tomorrow.

Gail Tofil is VP/strategic partnership retention for CO-OP Financial Services, Rancho Cucamonga, Calif., and has over 24 years’ experience in the financial technology and payments industry.

Learn more about Payments University, co-created by CO-OP Financial Services and CUES; it's coming up Aug. 13-14 in Denver.