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Study Four trends will define banking experience
MOUNTAIN VIEW, Calif. (8/24/11)--Increased regulatory pressures, the rapid adoption of mobile devices, heightened customer expectations and relationships will reshape the financial services industry over the next decade, according to the “Intuit 2020 Report: The Future of Financial Services.” The report identifies four trend areas that will shape financial services: 1. A New Playing Field for Financial Services: Regulatory pressures will increase and competition will grow from both traditional competitors and new entrants. These forces will lead financial institutions to explore new business models, collaboration and partnerships, and increased consolidation. Credit unions are already seeing consolidation efforts in the number of mergers among credit union, leagues and corporates. Four such mergers were introduced last week. 2. Shifting Segments, Changing Markets: Member-consumer demand for financial services will increase across all age groups. The two largest contingents--aging baby boomers and GenYers--will demonstrate particularly acute shifts in their needs and types of products and services they purchase, said Intuit. Credit unions have made efforts to attract Gen Y members using social media, focus groups and marketing campaigns Young & Free--available to one credit union in each state from Currency Marketing--provides tools to engage the youth market, through a combination of social media and contests to find a young, media-savvy credit union spokesperson. Competition to serve mid-market businesses will also intensify, slimming financial institution margins However, the overall small-business sector will continue expanding, with the total number of small and personal businesses increasing by more than seven million during the next decade. Most of this growth will come from micro and personal businesses of less than $1 million in revenue, creating opportunities for financial institutions that can serve these firms efficiently. To compete in the small business lending market, credit unions are pressing Congress to increase their member business lending cap to 27.5% of assets from 12.25%. Doing so would open up more opportunity to offer MBLs, inject $13 billion in loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers, according to the Credit Union National Association (CUNA). 3. The New Customer Connection: Technology’s role in the customer experience will take center stage. With increased cost pressures and a growing demand for flexibility, accessibility and personalization, financial services organizations will accelerate their use of technology to meet customer needs, said Intuit. Cloud computing platforms and applications will combine with advanced analytical tools, ever-larger data sets, and social and mobile computing to reshape the way the financial services industry designs and delivers value-added products and services to customers. 4. Reputation and Relationships Rule: Institutions that use technology to serve up useful customer insights will win. During the next decade, the financial service industry will shift its focus from transactions to customized value-added services. Credit unions are working to create member loyalty for the long run. At A+ FCU, Austin, Texas members can earn points through the PlusPoints Loyalty program by using services such as their debit cards, direct deposit and online banking. When members accumulate points they earn a higher interest on savings checking or become eligible for discounts on loan products. CUNA’s Creating Member Loyalty Program is designed to use exception member service as a differentiator to create member loyalty. For more information use, the link. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.


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