The world of payments is spinning fast and changing dramatically, Bill Lehman, CSCU’s senior vice president of portfolio consulting, said during the 2016 CSCU Solutions Conference in Orlando.
Lehman cited four key payments priorities credit unions should address immediately:
1. Mobile banking
A member’s digital experience with your app is arguably more important than the one they have at your branch because they’re more likely to bank digitally than in person.
“We’ve got to improve the user experience,” Lehman said.
He said credit unions should focus on providing a full-feature banking app, a consistent user experience across channels, and a streamlined application processes for mobile.
2. Digital wallets
There are many digital wallets in play including Apple Pay, Android Pay, and Samsung Pay.
Lehman said credit unions should embrace all of them. You don’t know which wallet your members will choose and you want to be where they want to go.
Further, encourage members to use digital wallets. Educate members about the benefits and security of digital wallets, he said.
3. Alerts and cardholder controls
“Members want control. They want to feel safe with your card product,” Lehman said.
Offering alerts on card activity and enabling controls such as limiting transactions and providing merchant restrictions and an on/off switch are great benefits: They reduce fraud and increase product stickiness.
“Why wouldn’t we want to take part in alerts and controls,” Lehman said. “Give members empowerment.”
4. Loyalty programs
The idea behind loyalty programs hasn’t really changed, Lehman said of incentives. But credit unions need to rethink the behaviors they’re trying to create with incentives.
Credit unions need to evolve their loyalty programs to work with digital wallet solutions so their cards are “top of thumb” or “top of wallet,” Lehman said.
The payments space is moving fast, he said. Credit unions need to take their foot off the brake and ensure they’re meeting members’ immediate expectations.