DES MOINES, Iowa (5/27/14)--A new white paper from payments processor The Members Group (TMG) explores the technologies that are changing the way credit unions build relationships with their members.
In the paper, "Unspooling the Payments Value Chain," the two areas of innovation detailed by Ryan Anderson, TMG vice president of product, are mobile banking and m-commerce. Those technologies represent the areas in the mobile landscape with the most potential to improve the consumer banking experience. Value-added services and social tools, he writes, are key components to those technologies and the most successful with consumers to date.
"Working within new digital parameters, today's most successful financial innovators are also snapping into the social aspect of banking and money management," Anderson writes. "Consider SmartyPig, for example. The platform scratches the surface of an important consumer trend--the need for social engagement from anywhere, anytime. Personal information that was once considered private--even financial transactions and goals--can now form the basis of a tweet, a Facebook post, or in the case of SmartyPig, a blast email to friends and family encouraging them to contribute their own funds to a user's personal savings goal."
Anderson calls out several other first-mover innovators in the financial space, including Movenbank, Mint and TMG's strategic partner Dwolla, as he encourages financial institution leaders to think in new ways about serving tomorrow's consumer.
"Individuals in high-value, influential groups like Gen Y, Hispanic and the underserved, are looking for innovative ways to interact with their finances succinctly and conveniently," he writes. "By taking a proactive approach to emerging solutions for payments, your financial instiution will be better positioned to satisfy these changing appetites, and in doing so capitalize on this new stream of value-added services revenue."
Financial institutions are not standing pat, Anderson writes, but are overcoming barriers to innovation by introducing new products and services that reshape how consumers save, spend and make money. Financial institutions have introduced advanced features such as mobile bill payment, customizable alerts and overall delivery of a more personalized and consistent experience across all banking channels.
According to the white paper, the Innovation in Retail Banking 2013 report revealed that as the global economy recovers, financial institutions worldwide are investing more in innovation to generate revenue and control costs. The study, which surveyed 148 financial institutions in 66 countries, also found that 77% are increasing investments in innovation.