You should be more focused on your credit union's data, says Lee Wetherington, director of strategic insight for Jack Henry & Associates/ProfitStars during his general session address at the CUNA CFO Council Conference Tuesday.
Here's why: The future of payments is more about data than payments. And credit unions must understand--and control--their member data.
For example, transaction data, according to Wetherington, tells you:
What other financial institutions members use;
What financial products/services they use;
How much they pay to use other financial services; and
Where they shop, how often, and how much they spend.
The end game, Wetherington maintains, is mobile marketing. The question is, who will control and monetize mobile marketing of payments data? Under the Google and Isis mobile wallet models, Google and Isis control the data.
The opportunity for credit unions, Wetherington says: More than 75% of interested consumers would prefer e-wallet services from their primary financial institution, according to a Mobile Payments Today survey.
Your data uniquely enables you to provide value with integrity, he says, and integrity wins the race.
Imagine offering members at the mobile point-of-purchase real-time data on whether the product they're considering is the best value, he explains. And then imagine showing members a snapshot of their accounts so they can decide if they can afford to or want to spend the money now.
"The future is about better enabling natural behavior," Wetherington says, "and nudging against behavior that's financially harmful."
And the key to your role in this future is data, he says.
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