“In an effort to combat fraud, chip-card technology is becoming the standard in every country but the U.S.,” Mark Sievewright, corporate senior vice president for Fiserv, told attendees Wednesday morning at the 1 CU Conference in Las Vegas.

View more conference coverage

“But the U.S. has been reluctant to make the conversion to chip cards,” he said. “So, by 2012, the U.S. will stand alone as the only major country without this technology, which will make it a fraudsters’ paradise.”

Another challenge credit unions will face in the future: having to deal with an inverted business model. “During recent history, loan growth has always exceeded savings growth,” he said. “Now, and for the foreseeable future, however, savings growth will exceed loan growth. Credit unions need to figure out how to succeed in that environment.”

Shifting demographics will present another challenge. “Different age groups want different financial products, services, and delivery channels,” he said. “Credit unions will have to provide a wide variety of products and services—and they’ll have to provide them through a variety of delivery channels. 

“The Apple iPad—or something like it—could become the branch of the future,” said Sievewright. “Your members will expect to be able to access your credit union from their offices, briefcases, or homes through these remote devices.

“In the U.S., people over age 80 represent the fastest growth demographic group,” he added. “It’s obvious these people will be interested in income generation, but they’ll also have loan demands. Your credit union needs to be in a position to serve these octogenarians.”