Regulations, fraud, security, and the need for digital engagement will shape the financial services landscape in 2016, according to a panel of credit union technologists, payments providers, and mortgage experts.
Here’s what five providers believe will be the “next big thing” in 2016.
Evolve Payments with Emerging Payment Technologies
As credit union Europay, MasterCard, and Visa (EMV) projects transition into our daily operations, credit union payment executives’ focus will shift from card present fraud prevention afforded by EMV to enabling more ways to pay, and to card not present fraud protection technologies.
Tokenization, which is the backbone to the “pays” (Apple, Samsung, and Android) and Visa Checkout and Master Pass, will move front and center in 2016. Tokenization enablement projects will have similarities to EMV in the aspect of enablement and staff and member education.
The Visa Digital Enablement Program and the MasterCard Digital Enablement Service, which were introduced in 2015 to streamline the enablement process, will go a long way in helping our credit unions close the gap with the early adopters of these technologies.
As more emerging technologies become available to credit union members, it will be imperative for credit union payment credit union service organizations, processors, and brands to be innovative in the enablement process to allow credit unions to be able to offer new products economically and in a competitive timeframe.
Because in many cases cardholders will have to “choose” to use credit union emerging payment technologies, credit unions will need to be creative in the way that they incent their cardholders to use their new products.
Emerging payment technologies will provide new platforms, such as mobile wallets, that will level the playing field and provide exciting new delivery channels for credit unions to deliver loyalty programs.
Traditionally, it has been the financial institutions that have been on the forefront to deliver card loyalty programs. However, merchants are starting to provide merchant-funded programs at the point of sale in an attempt to compete for consumer loyalty.
Credit unions will be challenged to continually evaluate their loyalty programs to ensure the value proposition is meeting both the needs of their members and their bottom-line goals.
THOMAS DAVIS is senior vice president, finance and technology, for CSCU.
Next: Card-not-present fraud