MADISON, Wis. (5/23/14)--For consumers who can't wait a second for their Candy Crush games to load, the idea of waiting days for payment transactions to be completed seems archaic. As the payments landscape changes, credit unions should be aware of the pieces that shift faster than falling red jelly beans or lemon drops.
"Consumers--especially younger consumers--demand immediacy in all areas of their lives," said Mark Sievewright, president of credit union solutions at Fiserv, in the June edition of Credit Union Magazine. "Even email seems too slow for younger consumers. They've come to expect the real-time benefits of instant messaging, texting and social media.
"When members have access to instant everything, waiting for anything seems passe," he noted.
"Real time" needs to apply to the entire payments process from start to finish--from initiating the payment though the funds settlement, Sievewright said. The challenge is to find an option that provides immediacy and meets regulatory standards.
Consumers accept costs for wire transfers and out-of-network services because of the convenience factor. Added Sievewright, "Many observers believe they'll pay for the same immediacy when it comes to other services."
Financial institutions that offer instant, person-to-person payment options--in addition to three-day and next-day payment options--see much higher adoption rates among potential users of the service, said Sievewright, pointing to research by Fiserv.
Sievewright's take on the changing payments landscape is only one of the topics covered in the newly released 2014-2015 Credit Union National Association Environmental Scan. CUNA's annual strategic planning resource also includes overviews of the economy, technology, board involvement, and the regulatory and legislative environment.