MOUNTAIN VIEW, Calif. (4/15/11)--Four trends will redefine the banking experience in the next decade, requiring credit unions and their competitors to remain nimble in a environment marked by new competitors, more regulation and impatient, technology-savvy consumers, according to a new report from Intuit. Intuit’s Financial Services division and Emergent Research conducted interviews and forecast workshops with financial services professionals, academics and industry analysts to compile the Intuit 2020 report, a forecast of the demographic, social, economic and technology shifts that will shape the financial services industry in the next decade. Intuit Financial Services is a CUNA Strategic Services provider. The four trends identified in the report are:
* A new playing field for financial services--Increasing regulatory pressures and competition from both traditional competitors and new entrants will drive financial institutions to explore new business models, leading to greater industry collaboration, partnerships and consolidation. * Shifting segments, changing markets--Young and old consumers will demand more from their financial institutions, as aging baby boomers enter retirement and Gen Yers approaching middle age will have new financial needs. Competition to serve mid-market businesses will intensify, further reducing margins for financial institutions. Meanwhile, the small business sector will continue to expand, with the number of small and personal businesses expected to increase by more than seven million over the next decade. Financial institutions must understand and find efficient ways to meet the needs of these businesses, according to the report. * The new customer connection--Technology will drive service. With increased cost pressures and a growing demand for flexibility, accessibility and personalization, financial services organizations must accelerate their use of technology to efficiently meet consumer needs. The financial services industry will combine cloud-based platforms and applications, advanced analytical tools, ever-larger data sets, and social and mobile computing to design and deliver value-added products and services to customers. * Reputation and relationships rule--During the next decade, the financial services industry will shift its focus from transactions to customized, value-added services. Through a combination of both virtual and brick-and-mortar branches, credit unions and banks will develop stronger, more personal relationships with businesses and consumers, helping them manage risk, build wealth, plan retirement and anticipate health-care expenses. Financial institutions that provide useful customer insights will succeed.