PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Thriving in a Digital World

By Aaron McPherson
August 9, 2018
in Analysts Coverage, Featured Content
0
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
digital transformation

digital transformation

Here at Mercator Advisory Group we just finished a quarter of scrutinizing mobile payments, and one of the insights that Ken Paterson had was that mobile platforms are increasingly driving strategy and development across the enterprise. As mobile becomes a preferred channel for more and more people, financial institutions have to take that into account when making new technology investments and developing new products.

Last month, I participated in a podcast with Ashley McAlpine and Amanda Atcheson of CO-OP Financial Services, where we discussed the broader topic of digital transformation, based on a white paper Mercator co-authored with CO-OP Financial Services earlier in the year. CO-OP has made digital transformation the cornerstone of its strategy for 2018, and the mobile channel is an important part of that strategy. In our analyst roundtable on mobile payments last week, I remarked that the line between online and mobile is increasingly blurred. Many people work on laptops rather than desktop computers nowadays, and if you go to your local Best Buy, most of the laptops are of the “hybrid” variety, allowing you to fold back the keyboard and use the device as a tablet. Should these devices be considered “mobile”? For that matter, as smartphones become more and more capable, it is becoming possible to leave the laptop at home or office and do your work entirely on your phone. In our podcast, I remarked that one of the first things I do when trying out a new business is to see if they have an app for my iPhone. Digital-first enterprises like Amazon are increasingly setting customer expectations for service, including such conveniences as artificial intelligence-driven recommendations, personalization, and “one-click” transactions.

In order to meet these customer expectations, financial institutions have to abandon old ideas of “owning” the customer relationship and start thinking of how they add value as part of a broader ecosystem. This ecosystem includes device manufacturers, web services, third-party processors, retailers, and independent software developers. Financial technology firms, or fintechs, can be important partners in leveraging the latest user experience and development methodologies to deliver traditional financial services in a better way. Third-party processors such as CO-OP have an important role to play in vetting and integrating fintech solutions so that financial institutions don’t have to do multiple integrations with small companies that may not be able to scale.

While there are obvious risks associated with cooperation in the digital ecosystem, where you don’t control the entire value chain, the growth potential is much greater. Geography no longer need be a limiting factor; in the digital world, a good solution can come from anywhere in the world. Financial institutions can deliver their services wherever the customer happens to be, rather than forcing them to use a particular app or website or branch. The traditional strengths of financial institutions: trust, stability, reliability, and customer service – are just as important, or more so, in the digital world, where services tend to be offered “as is,” and click-through terms of service spell out in ALL CAPS that there is no guarantee that they will even work, much less fulfill your needs. Financial institutions are used to being held to a higher standard, and customers count on that, even if they are tempted by the quick and easy path of the fintech.

In short, digital transformation is a challenging but necessary journey. It is a marathon, not a sprint, and financial institutions need not fear it if they keep their core value proposition in mind.

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Co-opDigital Transformation

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    emerging payment trends

    From the Name on the Cup to Custom Hotel Lighting: The Future of Loyalty Programs

    May 19, 2025
    push notification bank

    From Bland to Beneficial: Using Push Notifications to Reach Business Customers

    May 16, 2025
    recurring payments, PCI Compliance for small business, Fintech for Underserved Small Businesses

    Tariffs May Create an Opportunity in Small-Business Cards

    May 15, 2025
    Using the Card “Beyond” Payments to find the Holy Grail

    Using the Card “Beyond” Payments to find the Holy Grail

    May 14, 2025
    Payments Modernization

    Playing Offense and Defense: Why Now Is the Time for Payments Modernization

    May 13, 2025
    Authorization Rates

    Boosting Revenue for Merchants by Optimizing Authorization Rates

    May 12, 2025
    Why Payment Orchestration is the key to international merchant growth

    Ensuring Payment Decisions Pay for Themselves

    May 9, 2025
    cross-border

    As Businesses Reevaluate Cross-Border Relationships, Financial Institutions Can Help

    May 8, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result