While not really a “plague”, in calling attention to several of the changes currently underway the author highlights those issues the will have direct bearing on how many Americans interact with their financial institutions. I’d like to call out how a couple of the covered issues to underline how financial technology (fintech) companies are inserting themselves in and redirecting the flow of financial transaction processes. One such way is the use on mobile wallets.
Members don’t decide whether to stay with a credit union because of its mobile wallet options, and credit unions should avoid betting the ranch on one mobile wallet in 2016
The field of participants in the mobile wallet is wide and expanding. Mercator agrees with the aforementioned sentiment, recognizing the use of mobile wallets remains less integrated for many of use, and will need to allow for degrees of personalization dependent on individual preferences and use case scenarios.
The article also calls attention to how fintech companies are enabling smaller financial institutions to access new tools and products.
Prepaid programs are the fastest growing segment of card-based payments, according to Mercator Advisory Group, and the barriers to entry for credit unions in 2016 could get lower.
As prepaid programs gain stature as budgeting tools, the proclivity of more Americans to use them will expand. The flexibility to incorporate new products with customized attention will be a strong combination for credit unions and community banks in the coming year.
Overview by Joe Walent, Senior Analyst, Emerging Technologies Advisory Service at Mercator Advisory Group
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