Financial institutions and fintech businesses are often fighting over the same customers for a variety of similar services. An article in Credit Union Times contends that the threat of fintech to more traditional financial services firms is real:
While CUNA Mutual Group Chief Economist Steve Rick did not quantify how much disruptive financial services startups hurt individual credit unions in 2014, he told an October online conference audience they had certainly harmed credit unions overall.
The article further outlined with some interesting thoughts on how to discern whether fintech is successfully attracting members or customers within a particular institution. These indicators hold true for banks as well as Credit Unions:
• Your average number of products per member has declined
• Your membership has been declining in recent years.
• Your assets per branch have been falling steadily.
• Your percentage of members with draft accounts has been declining.
• Your share of members 30 and younger has dropped in recent years.
• Your members’ outbound ACH payees include disrupters such as Lending Club and Prosper
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
Read the full story here
