Instant financial card issuance provides opportunities for new revenue streams for financial institutions. As consumer behavior shifts towards debit and prepaid cards, offering instant issuance of these cards improves the customer experience and drives core deposit growth and fee income. Instant issuance differentiates financial institution brands by surprising customers with ready-to-use cards in the branch instead of a multi-day wait, increasing loyalty and acquisition of new customers. Benefits of instant issuance include improved customer experience, enhanced security, increased card usage and profitability, and the ability to instantly replace lost or stolen cards.
Disruptive vs. Top Down Change in US Payments in 2016Walter Kitchenman
Innovation in Payments is rarely “Disruptive,” but is normally Top Down, driven by public private cooperation, where change is mandated from the top, and entrepreneurs respond to consumer preferences at the margins. In this presentation we show how mobile payments and the Cloud, accompanied by the requirements of likely eCity networks and APPs wlll emerge in 2016 and benefit IT innovators and non-FSIs (non-Financial Service Institutions).
Transaction scoring can help credit card issuers more accurately assess risk and identify opportunities. It does this by analyzing transaction data in real time to identify risky spending patterns or positive credit usage. This allows issuers to intervene earlier with at-risk accounts and guide customers toward responsible credit use. It also reduces "false positives," identifying customers suitable for cross-selling or promotions. Transaction scoring provides benefits to both issuers and consumers by enabling more precise segmentation and tailored account management strategies.
Five Star Bank is launching a new consumer checking account product line and is seeking marketing strategies. The bank operates in Western and Central New York and aims to become the premier community bank in the region. It faces competition from large national banks and smaller regional banks. Most competitors offer checking accounts with monthly fees that can be waived by maintaining a minimum balance. Five Star wants to enhance the customer experience by offering banking services through multiple convenient access channels.
This document summarizes Hyundai Card's 3Q 2018 earnings release. Key points include:
- Member growth was increased through higher usage efficiency of existing members and tighter retention management. Acquisition costs were reduced by focusing on lower-cost channels like PLCC and co-brands.
- Financial product strategy maintained a conservative risk policy as the industry faces rising credit risk. The portfolio consists mostly of relatively lower risk card loans.
- Digital initiatives aim to enhance operations and find new business opportunities through areas like AI customer service, connected cars, and merchant financing.
- The goal for 2018 is to defend income through intensified cost cuts, more efficient acquisitions, and reduced promotion spending, despite regulatory
Research Paper | Counting the Cost of Debt Recovery 2018EchoMarketing
New consumer research from UK Outsourcer Echo Managed Services (https://www.echo-ms.com). Who are the Nation's debtors? | Reasons behind consumer arrears | effective and poor debt collection practice by sector | hidden costs of poor practice | debt and the causes of a negative stigma | the dangers of stereotyping consumers in arrears | awareness rates of vulnerable customer support schemes | data sharing - consumer attitudes and preferences | Key takeaways for UK service providers.
Our 2012 World Retail Banking Report offers a mechanism for better understanding customers,
as well as a prescription for navigating the current terrain. Our Customer Experience Index
proved to be an effective indicator of customer loyalty, which is an essential element of retaining and
attracting customers.
Disruptive vs. Top Down Change in US Payments in 2016Walter Kitchenman
Innovation in Payments is rarely “Disruptive,” but is normally Top Down, driven by public private cooperation, where change is mandated from the top, and entrepreneurs respond to consumer preferences at the margins. In this presentation we show how mobile payments and the Cloud, accompanied by the requirements of likely eCity networks and APPs wlll emerge in 2016 and benefit IT innovators and non-FSIs (non-Financial Service Institutions).
Transaction scoring can help credit card issuers more accurately assess risk and identify opportunities. It does this by analyzing transaction data in real time to identify risky spending patterns or positive credit usage. This allows issuers to intervene earlier with at-risk accounts and guide customers toward responsible credit use. It also reduces "false positives," identifying customers suitable for cross-selling or promotions. Transaction scoring provides benefits to both issuers and consumers by enabling more precise segmentation and tailored account management strategies.
Five Star Bank is launching a new consumer checking account product line and is seeking marketing strategies. The bank operates in Western and Central New York and aims to become the premier community bank in the region. It faces competition from large national banks and smaller regional banks. Most competitors offer checking accounts with monthly fees that can be waived by maintaining a minimum balance. Five Star wants to enhance the customer experience by offering banking services through multiple convenient access channels.
This document summarizes Hyundai Card's 3Q 2018 earnings release. Key points include:
- Member growth was increased through higher usage efficiency of existing members and tighter retention management. Acquisition costs were reduced by focusing on lower-cost channels like PLCC and co-brands.
- Financial product strategy maintained a conservative risk policy as the industry faces rising credit risk. The portfolio consists mostly of relatively lower risk card loans.
- Digital initiatives aim to enhance operations and find new business opportunities through areas like AI customer service, connected cars, and merchant financing.
- The goal for 2018 is to defend income through intensified cost cuts, more efficient acquisitions, and reduced promotion spending, despite regulatory
Research Paper | Counting the Cost of Debt Recovery 2018EchoMarketing
New consumer research from UK Outsourcer Echo Managed Services (https://www.echo-ms.com). Who are the Nation's debtors? | Reasons behind consumer arrears | effective and poor debt collection practice by sector | hidden costs of poor practice | debt and the causes of a negative stigma | the dangers of stereotyping consumers in arrears | awareness rates of vulnerable customer support schemes | data sharing - consumer attitudes and preferences | Key takeaways for UK service providers.
Our 2012 World Retail Banking Report offers a mechanism for better understanding customers,
as well as a prescription for navigating the current terrain. Our Customer Experience Index
proved to be an effective indicator of customer loyalty, which is an essential element of retaining and
attracting customers.
World Retail Banking Report 2015 from Capgemini and EfmaCapgemini
The document provides an overview of the 2015 World Retail Banking Report, which analyzes customer experience levels and behaviors based on a survey of over 16,000 banking customers in 32 countries. The following key points are made:
1) The overall Customer Experience Index (CEI) for retail banks stagnated at 72.7 in 2015, down slightly from 2014, indicating banks' efforts to improve customer experience are falling short.
2) While most regions saw an increase in positive customer experiences, Western Europe saw a significant rise in negative experiences, with the percentage of unhappy customers doubling from 2014.
3) Younger generations (Gen Y) reported lower customer satisfaction levels across all regions compared to older customers,
The document summarizes the findings of a survey of over 4,500 UK financial services customers. It finds that while customers appreciate the increased convenience of digital services, they still desire a human touch in their interactions, especially for important decisions. Customers are also concerned about how their personal data is used. To succeed, financial institutions must offer highly personalized services and interactions through natural conversations, using data and technology to enhance rather than replace human elements.
Arizona small businesses want loans, but are baffled why they are still so difficult to obtain even after the recession is over. When it comes to Arizona’s banking landscape and how it directly impacts local small businesses, an eBook released today by Horizon Community Bank outlines a few key challenges that are top-of-mind in the industry and why they are happening.
This document discusses recent trends and the future of retail banking in India. Key trends include increased technology usage, rising incomes, and preference for alternate banking channels. Retail liabilities are expected to grow from tier 2/3 locations through value-added products and services. Retail credit, especially housing, auto, and personal loans, will continue expanding rapidly at 20-30% annually. Challenges include potential rising delinquencies, liquidity mismatches, and fraud risks. Overall, competition is expected to benefit customers through better service and pricing.
Investments in Customer Centricity Are Seeing Dividends for Financial Service...1to1 Media
A look at how Retail Banks and Insurance Companies are evolving their product-focused missions into customer-centric strategies for financial gains. www.1to1media.com
201407 Digital Disruption in Banking - Accenture Consumer Digital Banking Sur...Francisco Calzado
Banks are facing disruption from new digital entrants and changing customer behaviors. A survey of 4,000 banking customers found that over a quarter would consider a branchless digital bank, and nearly half would bank with non-financial companies they do business with like Amazon or Apple. Younger customers especially want banking services that are convenient and integrated across digital and traditional channels. To respond, banks need to become truly omnichannel, extend their ecosystem of services, and offer digital personalized financial advice to stay relevant and build loyalty as customer needs evolve.
Banks are facing disruption from new digital entrants and changing customer behaviors. A survey of 4,000 banking customers found that over a quarter would consider a branchless digital bank, and nearly half would bank with non-financial companies they do business with like Amazon or Apple. Younger customers especially want banking services that are seamlessly integrated across digital and in-person channels, and expect their bank to proactively recommend products and help manage their finances. To respond, banks need to become truly omnichannel, extend their ecosystem of services, and offer digital personalized financial advice to stay relevant and build loyalty among changing customer demands.
The passage of credit card reform legislation and the economic crisis present challenges and opportunities for card issuers. Major issuers are tightening standards while smaller issuers see a chance to gain market share. This is a prime opportunity for smaller issuers to differentiate their offerings as public sentiment has turned against large banks for credit card and banking practices. The speaker, Doreen Fox Kelsey, provides marketing consulting and writes on financial literacy topics.
How digital mortgage solutions can help win the war against margin compressionBoston Consulting Group
After a prolonged period of low interest rates, the 30-year fixed mortgage rate has risen, and is likely to stay at a higher level than we have seen for the last decade. Both bank and non-bank originators are feeling the impact, with originations, revenue, and profitability declining in line with historical patterns. Given these challenges, originators are looking for ways to sustain profitable growth and create a market advantage. This white paper addresses how mortgage originators can and are leveraging digital solutions across the mortgage value chain to address those market challenges.
How Banks Can Close the 'Value Gap' and Regain Customer TrustJoseph M Bradley
Across the globe, banks have faced a wide array of challenges in recent years. At a time of rapidly changing consumer expectations, upstarts from outside
the traditional banking industry have used technology to disrupt incumbents.
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Understanding financial consumersretail banking, digital banking, omni-channe...CGI
The document summarizes the findings of a survey on financial consumer trends in the digital era. Key findings include:
1) The majority of consumers want omni-channel access to services and to be rewarded for their business. Top wants are rewards, account access, personalized service, wealth advice and spending insights.
2) Satisfaction levels are low for rewards, wealth advice and spending insights. Over half would consider switching for better services.
3) Top reasons for switching banks are poor service, better rates elsewhere, and security concerns.
Whitepaper_E_Customer centricity the survival strategy for Japanese lendersArup Das
1. The Japanese consumer lending industry has traditionally been dominated by banks lending to large firms, leaving the consumer and small business segments underserved. Non-bank institutions grew rapidly from 1994-2003 by serving these segments but then faced regulatory crackdowns.
2. Now with low interest rates and high competition, Japanese lenders must differentiate themselves through customer centricity. The whitepaper discusses how improving the customer experience during loan origination, such as through faster approvals and online self-service, can help lenders gain an advantage.
3. Key aspects of a customer centric origination process include product innovation, convenience, relevance, quick approvals, self-service capabilities, and an omni-channel experience. Technology
Retail banks around the world are facing intense margin pressure, slow
balance sheet growth, an uncertain economic outlook and a growing
threat from new entrants, especially in the payments arena. Banks are
also confronted with growing regulatory costs and increasing demands
for greater fairness and clarity in their interactions with customers.
This document provides an overview of technology spending by U.S. bankers in 2012. It discusses key themes in the banking industry like channel shift, disintermediation, customer engagement, and improving customer experience. The document also summarizes the state of the banking industry in 2011, noting continued challenges from the mortgage crisis but signs of recovery. Technology spending growth is projected to be modest at 1.8% in 2012 due to uncertainties. The rest of the document breaks down projected spending areas and provides expert opinions on trends in mobile banking, analytics, compliance, security and other technologies.
This document summarizes a financial advisory platform called Finny that aims to help those without prior knowledge of finance. Approximately 16.7 million adults in the US were unbanked in 2013. Finny provides a one-stop platform to compare financial services and make recommendations tailored to each user's basic demographic information and needs. The target market includes the unbanked, underbanked, and those seeking to improve their financial health. The business model involves collecting commissions from financial institutions after expanding the customer base initially through promotional offers.
1) Banks currently use an iterative onboarding process that requires customers to provide extensive personal information upfront. This model is failing with digital natives who expect transparency and minimal effort.
2) To successfully attract and retain millennial customers, banks need to reinvent their business model, revenue model, customer engagement model, and delivery model. They must mine customer data from a wide range of digital sources to develop personalized solutions.
3) Banks should focus on becoming trusted aggregators of financial opportunities and value for customers rather than managers of their money. Winning the "game of information" will determine which institutions can successfully serve customers in the future.
A lot of time and money is being spent by banks in making their organization customer focused and improving the customer experience. According to Gartner’s 2012 CIO Survey, CIOs regard customer experience as the greatest opportunity for IT innovation.
Installment Payment FinTechs: Buy Now, Pay Later (BNPL)Alexander Davis
Installment Payment FinTechs have become some of the hottest operators in the post-COVID era. Their ability to enable consumers to purchase previously unaffordable products through novel applications has resulted in explosive growth but does not come without risks.
The document discusses the future of payments in the 21st century and how new technologies and business models are disrupting traditional payment systems. It analyzes trends like real-time payments, use of unique identifiers like phone numbers and emails, push-based systems like PayPal versus pull-based card networks, improved security and fraud controls, lower processing costs, and the transition away from paper checks and plastic cards to digital and mobile-based payments. PayPal is highlighted as an example of a company leveraging these 21st century innovations to build a highly successful new payments platform.
Instant card issuance is gaining popularity as a way for financial institutions to enhance the customer experience, gain competitive advantages, and generate additional revenue. The document discusses factors driving the adoption of instant issuance, its financial and customer experience benefits, and options for implementation including centralized issuance, temporary instant cards from card vaults, and in-branch hardware/software for personalized cards. Case studies show instant issuance increases activation rates, usage, and customer satisfaction compared to mail-delivered cards.
World Retail Banking Report 2015 from Capgemini and EfmaCapgemini
The document provides an overview of the 2015 World Retail Banking Report, which analyzes customer experience levels and behaviors based on a survey of over 16,000 banking customers in 32 countries. The following key points are made:
1) The overall Customer Experience Index (CEI) for retail banks stagnated at 72.7 in 2015, down slightly from 2014, indicating banks' efforts to improve customer experience are falling short.
2) While most regions saw an increase in positive customer experiences, Western Europe saw a significant rise in negative experiences, with the percentage of unhappy customers doubling from 2014.
3) Younger generations (Gen Y) reported lower customer satisfaction levels across all regions compared to older customers,
The document summarizes the findings of a survey of over 4,500 UK financial services customers. It finds that while customers appreciate the increased convenience of digital services, they still desire a human touch in their interactions, especially for important decisions. Customers are also concerned about how their personal data is used. To succeed, financial institutions must offer highly personalized services and interactions through natural conversations, using data and technology to enhance rather than replace human elements.
Arizona small businesses want loans, but are baffled why they are still so difficult to obtain even after the recession is over. When it comes to Arizona’s banking landscape and how it directly impacts local small businesses, an eBook released today by Horizon Community Bank outlines a few key challenges that are top-of-mind in the industry and why they are happening.
This document discusses recent trends and the future of retail banking in India. Key trends include increased technology usage, rising incomes, and preference for alternate banking channels. Retail liabilities are expected to grow from tier 2/3 locations through value-added products and services. Retail credit, especially housing, auto, and personal loans, will continue expanding rapidly at 20-30% annually. Challenges include potential rising delinquencies, liquidity mismatches, and fraud risks. Overall, competition is expected to benefit customers through better service and pricing.
Investments in Customer Centricity Are Seeing Dividends for Financial Service...1to1 Media
A look at how Retail Banks and Insurance Companies are evolving their product-focused missions into customer-centric strategies for financial gains. www.1to1media.com
201407 Digital Disruption in Banking - Accenture Consumer Digital Banking Sur...Francisco Calzado
Banks are facing disruption from new digital entrants and changing customer behaviors. A survey of 4,000 banking customers found that over a quarter would consider a branchless digital bank, and nearly half would bank with non-financial companies they do business with like Amazon or Apple. Younger customers especially want banking services that are convenient and integrated across digital and traditional channels. To respond, banks need to become truly omnichannel, extend their ecosystem of services, and offer digital personalized financial advice to stay relevant and build loyalty as customer needs evolve.
Banks are facing disruption from new digital entrants and changing customer behaviors. A survey of 4,000 banking customers found that over a quarter would consider a branchless digital bank, and nearly half would bank with non-financial companies they do business with like Amazon or Apple. Younger customers especially want banking services that are seamlessly integrated across digital and in-person channels, and expect their bank to proactively recommend products and help manage their finances. To respond, banks need to become truly omnichannel, extend their ecosystem of services, and offer digital personalized financial advice to stay relevant and build loyalty among changing customer demands.
The passage of credit card reform legislation and the economic crisis present challenges and opportunities for card issuers. Major issuers are tightening standards while smaller issuers see a chance to gain market share. This is a prime opportunity for smaller issuers to differentiate their offerings as public sentiment has turned against large banks for credit card and banking practices. The speaker, Doreen Fox Kelsey, provides marketing consulting and writes on financial literacy topics.
How digital mortgage solutions can help win the war against margin compressionBoston Consulting Group
After a prolonged period of low interest rates, the 30-year fixed mortgage rate has risen, and is likely to stay at a higher level than we have seen for the last decade. Both bank and non-bank originators are feeling the impact, with originations, revenue, and profitability declining in line with historical patterns. Given these challenges, originators are looking for ways to sustain profitable growth and create a market advantage. This white paper addresses how mortgage originators can and are leveraging digital solutions across the mortgage value chain to address those market challenges.
How Banks Can Close the 'Value Gap' and Regain Customer TrustJoseph M Bradley
Across the globe, banks have faced a wide array of challenges in recent years. At a time of rapidly changing consumer expectations, upstarts from outside
the traditional banking industry have used technology to disrupt incumbents.
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Understanding financial consumersretail banking, digital banking, omni-channe...CGI
The document summarizes the findings of a survey on financial consumer trends in the digital era. Key findings include:
1) The majority of consumers want omni-channel access to services and to be rewarded for their business. Top wants are rewards, account access, personalized service, wealth advice and spending insights.
2) Satisfaction levels are low for rewards, wealth advice and spending insights. Over half would consider switching for better services.
3) Top reasons for switching banks are poor service, better rates elsewhere, and security concerns.
Whitepaper_E_Customer centricity the survival strategy for Japanese lendersArup Das
1. The Japanese consumer lending industry has traditionally been dominated by banks lending to large firms, leaving the consumer and small business segments underserved. Non-bank institutions grew rapidly from 1994-2003 by serving these segments but then faced regulatory crackdowns.
2. Now with low interest rates and high competition, Japanese lenders must differentiate themselves through customer centricity. The whitepaper discusses how improving the customer experience during loan origination, such as through faster approvals and online self-service, can help lenders gain an advantage.
3. Key aspects of a customer centric origination process include product innovation, convenience, relevance, quick approvals, self-service capabilities, and an omni-channel experience. Technology
Retail banks around the world are facing intense margin pressure, slow
balance sheet growth, an uncertain economic outlook and a growing
threat from new entrants, especially in the payments arena. Banks are
also confronted with growing regulatory costs and increasing demands
for greater fairness and clarity in their interactions with customers.
This document provides an overview of technology spending by U.S. bankers in 2012. It discusses key themes in the banking industry like channel shift, disintermediation, customer engagement, and improving customer experience. The document also summarizes the state of the banking industry in 2011, noting continued challenges from the mortgage crisis but signs of recovery. Technology spending growth is projected to be modest at 1.8% in 2012 due to uncertainties. The rest of the document breaks down projected spending areas and provides expert opinions on trends in mobile banking, analytics, compliance, security and other technologies.
This document summarizes a financial advisory platform called Finny that aims to help those without prior knowledge of finance. Approximately 16.7 million adults in the US were unbanked in 2013. Finny provides a one-stop platform to compare financial services and make recommendations tailored to each user's basic demographic information and needs. The target market includes the unbanked, underbanked, and those seeking to improve their financial health. The business model involves collecting commissions from financial institutions after expanding the customer base initially through promotional offers.
1) Banks currently use an iterative onboarding process that requires customers to provide extensive personal information upfront. This model is failing with digital natives who expect transparency and minimal effort.
2) To successfully attract and retain millennial customers, banks need to reinvent their business model, revenue model, customer engagement model, and delivery model. They must mine customer data from a wide range of digital sources to develop personalized solutions.
3) Banks should focus on becoming trusted aggregators of financial opportunities and value for customers rather than managers of their money. Winning the "game of information" will determine which institutions can successfully serve customers in the future.
A lot of time and money is being spent by banks in making their organization customer focused and improving the customer experience. According to Gartner’s 2012 CIO Survey, CIOs regard customer experience as the greatest opportunity for IT innovation.
Installment Payment FinTechs: Buy Now, Pay Later (BNPL)Alexander Davis
Installment Payment FinTechs have become some of the hottest operators in the post-COVID era. Their ability to enable consumers to purchase previously unaffordable products through novel applications has resulted in explosive growth but does not come without risks.
The document discusses the future of payments in the 21st century and how new technologies and business models are disrupting traditional payment systems. It analyzes trends like real-time payments, use of unique identifiers like phone numbers and emails, push-based systems like PayPal versus pull-based card networks, improved security and fraud controls, lower processing costs, and the transition away from paper checks and plastic cards to digital and mobile-based payments. PayPal is highlighted as an example of a company leveraging these 21st century innovations to build a highly successful new payments platform.
Instant card issuance is gaining popularity as a way for financial institutions to enhance the customer experience, gain competitive advantages, and generate additional revenue. The document discusses factors driving the adoption of instant issuance, its financial and customer experience benefits, and options for implementation including centralized issuance, temporary instant cards from card vaults, and in-branch hardware/software for personalized cards. Case studies show instant issuance increases activation rates, usage, and customer satisfaction compared to mail-delivered cards.
This white paper discusses the benefits of implementing on-demand and personalized payment card strategies for financial institutions. It highlights how the current economic climate and changing consumer behaviors have made innovation imperative. Personalized cards that allow cardholders to customize designs increase acquisition, activation, retention and spending. The traditional card fulfillment model has high costs and long lead times that limit personalization. A new on-demand card manufacturing model provides advantages like lower costs and faster fulfillment times, enabling cost-effective personalized cards. This strategy helps financial institutions drive growth during challenging economic times.
Business is changing on virtually every front, and the world of payments is no exception. Today, merchants, financial institutions, and processors all face an evolving landscape that is being reshaped
by an array of forces. The use of credit and debit cards is changing. Emerging payment methods, based on everything from smartphones to social networks, are rapidly gaining traction, as are innovative point-of-sale systems and a growing number of ewallet- based methods. For more info: www.nafcu.org/vantiv
1. Buying on credit involves purchasing something with the promise to pay in the future.
2. Key players in credit card transactions include the cardholder, merchant, acquiring bank (merchant's bank), issuing bank (cardholder's bank), and card associations like Visa and Mastercard.
3. An acquiring bank contracts with merchants to enable credit card acceptance, while an issuing bank issues cards to consumers and is repaid by cardholders. Card associations govern the system and process transactions.
Future of South East Asia Digital Financial ServiceTrnHoQuang1
The document analyzes the future potential of digital financial services in Southeast Asia, which currently has low access to traditional financial services with over 70% of the population underbanked or unbanked. Digital payments and remittances have reached an inflection point and are expected to significantly grow by 2025, with digital lending emerging as the largest revenue opportunity as new business models serve more customers. Realizing the full potential of $60 billion in revenue by 2025 requires supportive regulations and infrastructure to further drive innovation and financial inclusion.
This document provides an overview of the growing point-of-sale financing market in the United States. It discusses five business models for point-of-sale financing, including integrated shopping apps, card-linked installment offerings, and vertical-focused larger ticket plays. Fintechs have captured most of the market so far, but the document suggests banks could explore entry opportunities to compete. It analyzes trends driving growth, such as increasing merchant adoption and repeat usage among younger consumers.
2nd Place Finalist Consulting Case Competition for ANZ x TBWA x UniMelb Kate Gilchrist
Presentation by Finalists of SAMM's (Student Association of Management and Marketing) Consulting Case Competition with ANZ Banking Corporation and TBWA. Our proposal includes 4 key disruption inspired ideas for ANZ's strategic direction.
Semester 2 (August) 2017 at The University of Melbourne.
Federal regulations have significantly impacted bank profits from credit cards by limiting interest income and fees. As consumers pay down debt, balance transfers represent a profitable opportunity for banks, with an estimated $35-40 billion transferred annually. However, banks face challenges in attracting balance transfers, including identifying profitable customers versus unprofitable "rate surfers", targeting customers with high propensity to transfer, and preventing transfers from their own customers. Propensity models can help banks segment customers and maximize effective balance transfer offers.
A New Strategy For the Loan Portfolio and Decision Making System for Raiffeis...Rufat Mustafaev
This document proposes a strategy to attract and retain promising borrowers to optimize a loan portfolio and increase profits. It involves segmenting customers into 4 groups based on financial acumen, digital acumen, spending habits, and other factors. Targeted marketing and customized credit card offerings will be used to attract each segment. Incentives like cashback and fee waivers will encourage customers to use Raiffeisen as their primary card for retention. A scoring model will be improved to more accurately identify promising borrowers. If successful, the strategy could triple the loan portfolio to $47.1 billion by 2021, increase credit card holders by 90%, and boost net income 12% per year. Risks around market share, attraction, retention,
Building profitable relationships with multichannel consumersPaul McAdam
Building Profitable Relationships with Multi-Channel Consumers is the first in a series of Consumer Insight Briefs based on primary research conducted by FIS™ Enterprise Strategy. The research findings are based on a 42-question, online survey completed by more thanover 4,000 U.S. consumers in early September 2010. The survey was fielded by FIS Enterprise Strategy to a consumer panel maintained by Survey Sampling International. The estimated margin of error rate for this sample is +/-1.6% to 2.3%.
Mobile photo bill pay is a new service that allows customers to pay bills using their mobile phones by taking a photo of a paper bill. The photo is processed to extract key information like the payee and amount due. This information is then used to pay the bill through the bank's existing bill pay system. This new service has the potential to increase bill pay adoption by making it more convenient and portable. It also reduces paper usage and processing costs for banks. Mobile photo bill pay builds on the success of mobile remote deposit capture and could help banks attract new customers, deepen customer relationships, and generate new revenue sources like expedited bill payments.
Mobile photo bill pay is a new service that allows customers to pay bills using their mobile phones by taking a photo of a paper bill. The photo is processed to extract key information like the payee and amount due. This information is then used to populate fields in the bank's mobile bill pay app, where the customer can review and schedule payment. This combines the convenience of mobile bill pay with image capture technology used for mobile check deposit. It has the potential to increase bill pay adoption and usage while reducing paper handling costs for banks.
US Retail Banks have enjoyed several years of strong profitability and positive revenue growth. However, we see numerous headwinds to growth due to demographic, competitive, and consumer trends. While many of these trends will persist well into the future, 2019 will be a pivotal year. The attached white paper provides insights into the growth challenge and creative solutions for banks can act to accelerate their growth.
banks news and trands in globalhghk.docxChetanBariya4
This document provides a summary of trends in the global banking industry. It discusses Paytm Payments Bank being instructed by RBI to halt onboarding new clients and cease additional services. It also mentions that global banks could boost valuations by $7 trillion in 5 years by promoting growth and productivity. Finally, it provides a link to a news article about Citi Commercial Bank launching a new digital client platform.
This document summarizes key challenges and opportunities facing the financial services industry. It discusses the economic environment, industry consolidation, net interest margin compression, changing demographics, and regulatory changes like the Durbin Amendment and Dodd-Frank Act. Strategies are proposed for credit unions to optimize performance, including maximizing overdraft opt-ins, evaluating product lines, focusing on relationships, and improving operational efficiency. Generational trends and their implications are also examined.
This document summarizes a merchant processing program that offers zero fees. It provides merchants with no minimum, batch, report, or hidden fees, lowering their processing rates from 2-4.5% to zero. It discusses how merchants can use the savings to expand their business through new locations, hiring, or bonuses. The program is legal and allows merchants to offer a cash discount while adding a customer service fee to card transactions. Thousands of merchants have adopted this program to eliminate processing fees and profits.
Credit unions have struggled over the past decade as their target demographics have changed dramatically. Younger consumers expect to do their banking digitally and demand services like mobile access that many smaller credit unions cannot provide. Additionally, over-regulation has increased compliance costs for credit unions. To adapt, credit unions must modernize their digital offerings, focus on data analytics to better target potential members, and get more creative with their marketing, focusing on member benefits rather than just promoting loans. The pandemic accelerated credit union challenges, causing average shrinkage of 7%, so retention efforts are also critical alongside new member acquisition.
1. INSTANT FINANCIAL CARD ISSUANCE
Emerging Revenue Opportunities
for Financial Institutions
By Ron Zanotti
Senior Vice President
Instant Issuance Solutions
Datacard Group
2. ABSTRACT
The U.S. financial crisis that began brewing in 2008 is well documented. Losses driven
by residential mortgages and commercial real estate were clearly devastating for financial
institutions of all sizes. The impact of the “crisis” has been compounded by changes in
consumer behavior, new federal banking regulations and the formation of committees that
promise a steady flow of new, restrictive governance.
The impact of all this turmoil is clear: Financial institutions and consumers are changing,
and the old business models used to drive growth and earnings simply won’t work any
more. For example, the deployment of Regulation E (limits on overdraft charges) requires
most financial institutions to find replacement revenue. Overdraft fees are a dry well and
are no longer even a moderately good source of revenue.
This poses an important question for financial institutions and credit unions. If the old ways
do not or will not work, what will? Where can financial institutions turn for new revenue?
THE OPPORTUNITY: CAPITALIZING ON A CONFIRMED TREND
As the financial environment transforms, building lasting, profitable relationships will require
financial institutions to develop a deep understanding of consumer preferences and brand loyalty
triggers. It will require providing products and services that become fundamental to the consumer’s
daily life. For most financial institutions this opportunity lies in payment cards — with a special
emphasis on fast-growing debit and prepaid cards.
A report issued in December 2010 by the U.S. Federal Reserve paints a clear picture of changes in
consumer behavior — and identifies a trend in the payment landscape that will only grow stronger
over time, regardless of the speed or strength of any economic recovery.
The Federal Reserve report states: The annual use of debit cards increased by over 12.8 billion
payments, the largest increase by any payment type during the survey period (2007-2009), reaching
37.9 billion payments in 2009, which represented a 14.8 percent annual growth rate. Debit card
usage now exceeds all other forms of noncash payments and, by number of payments, represents
approximately 35 percent of total noncash payments. Over the same period, automated clearinghouse
(ACH) payments grew to 19.1 billion, an increase of 4.5 billion payments. Credit card payments
declined by 0.1 billion to 21.6 billion in 2009. Prepaid card transactions had the lowest transaction
volume of all noncash payments at 6 billion; however, these transactions represented the fastest
growing payment type, increasing 21.5 percent annually from 2006 to 2009.
1 Instant Financial Card Issuance White Paper
3. GROWTH/DECLINE OF PAYMENT CARD USAGE
PERCENTAGE GROWTH (2007-2009)
+21.5%
+14.8%
-.01%
Debit Cards Credit Cards Prepaid Cards
PAYMENT CARD TYPE
This move to debit cards is a direct reflection of the thriftiness or frugal consumer behavior that
appears to be a permanent change. From the financial institution’s perspective, this change presents
an opportunity to drive core deposit growth and generate new fee income through a strong debit card
offering. Prepaid cards also fall into this “growth and profitability” category. While they represent
a smaller share of the current payment landscape, recent growth is staggering. The prepaid concept
aligns perfectly with the emerging “spend only what I have” mentality. The prospect of 21.5 percent
annual growth also speaks to great opportunity.
While the residential and commercial mortgage crisis continues and the clean up of toxic assets
slowly progresses — and while Regulation E and other new legislation eats away at previous revenue
streams — financial institutions can step away from the old model and generate new revenue through
a consumer-centric card issuance program that offers credit, debit, ATM and prepaid options.
MARKETING STRATEGY: TRULY UNDERSTANDING CONSUMER PREFERENCES
Clearly, there is opportunity for growth in the credit, debit, ATM and prepaid card space. However,
simply offering these products will likely not create the revenue generation or revenue replacement
that most financial institutions seek.
In order to effectively attract and retain cardholders, financial institutions will need to design card
issuance programs in ways that align with consumer preferences and behaviors. Simply stated, there
is virtually an unlimited number of provider options in most markets. It is not just a matter of making
these financial card products available — it’s how financial institutions offer them that will allow them
to differentiate their brands, acquire new market share and grow revenue.
So, what do consumers really want?
In a recent Compete.com survey, 52.6 percent of respondents stated they chose their primary financial
institution because of convenience. No surprise, considering consumers want convenience in every
aspect of their life. Banking is certainly no exception.
2 Instant Financial Card Issuance White Paper
4. In another survey conducted by the Journal of Consumer Marketing, 68 percent of respondents
who left their financial institutions did so because they experienced indifferent treatment by staff
members. This is so important to understand considering that consumers interact with service
representatives every day. Any “bad” experience with a staff member can easily cause a consumer to
switch financial institutions.
These findings point to the power of instant issuance.
Instead of issuing cards strictly from a central location, financial institutions are discovering that
providing customers with ready-to-use credit, debit, ATM and prepaid cards while they are in the
branch aligns perfectly with consumer demand for convenience.
Perhaps more important, instant issuance surprises consumers (in a good way) and helps differentiate
a financial institution’s brand. Consumers have been conditioned to expect a multi-day or multi-
week process when acquiring financial cards. Instant issuance disrupts that experience and provides
consumers with a compelling reason to choose and stay loyal to a financial institution.
BENEFITS OF INSTANT ISSUANCE
Improved Customer Experience Consumers do not have to wait days or weeks to receive cards. Printing card
text and images on-site also allows financial institutions to offer increased
customization with personal photos, co-branding logos and other elements.
Enhanced Security By instantly issuing permanent cards, the risk of cards lost or stolen in the
mail is eliminated. Allowing cardholders to select PINs at time of issue also
eliminates PIN mailers and the possibility of PIN interception in the mail.
Increased Card Usage A large percentage of cards delivered by mail are never activated and
never used. By issuing the cards immediately to the customer, the activation
is automatic.
Increased Profitability Increasing card sales, activation and usage increases profitability. Also,
banks and credit unions have the ability to charge an annual fee for highly
personalized cards.
Emergency Card Replacement Banks and credit unions with an instant card issuance program in place have
complete control of the reissuing process. The risk of losing cardholders and
their business is reduced when a card can be reissued quickly.
Brand Differentiation Instant issuance is an innovative marketing tool that financial institutions can
use to optimize their debit and credit card program. It ultimately increases
cardholder retention, acquisition and cross-selling opportunities.
Cardholder-selected PIN A recent study conducted by Deloitte shows that debit cards without a known
PIN will fall to the bottom of wallet and will likely never be used. Instant and
on-site PIN selection ensures no additional steps are required before card use.
3 Instant Financial Card Issuance White Paper
5. ENABLING TECHNOLOGY: ISSUING PERMANENT CARDS IN THE BRANCH
Over the past few decades, many large financial institutions have developed central issuance facilities
for their card programs. Smaller and mid-size financial institutions tend to outsource the process
to service bureaus. Consumers submit applications and if they are approved, a card is personalized
and mailed to them. As part of the process, they receive instructions on how to activate the card and
set PINs (while this process typically takes about five to seven days, a recent survey shows that, on
average, consumers believe it typically takes about three weeks).
An instant issuance deployment moves this process to the branch level. Consumers walk into the
branch and provide application information to a staff member. That information is entered
into a software program that drives both the approval and the card personalization process. In
many cases, financial institutions will create a hybrid infrastructure that combines both central and
instant issuance.
In most deployments, approval is virtually instant. Consumers typically choose a card design, which
can include personal photos, co-branded logos and other meaningful elements. Ready-to-use, fully
activated cards are printed instantly and handed directly to the consumer. Information is retained in
the system in the event replacement cards are needed. Consumers are immediately able to use their
permanent cards to make purchases or withdraw cash from ATMs.
This instant issuance process statistically improves key metrics, such as card activation rates,
card usage, share of wallet and brand loyalty. In today’s rapidly changing and somewhat uncertain
banking environment, improving these metrics is critical to driving core deposit growth and fee
income growth.
1. NEW ACCOUNT 2. HOST SYSTEM 3. DATA PREPARATION/MANAGEMENT
APPLICATION, AND ISSUANCE MANAGEMENT 4. CENTRAL ISSUANCE
ACCOUNT MANAGEMENT
4
AND APPROVAL
4. INSTANT ISSUANCE:
4 BRANCH/RETAIL
0100
1101
0110
5
0100
1 2 1101 0110
0110 1010
0100 0110 1010
1101 1010 1001
0110 1010 1010
0110 1001
1010 1010
1010
4. INSTANT ISSUANCE:
1001
1010
5. POST-ISSUANCE
3 4 UNATTENDED MANAGEMENT
4. INSTANT ISSUANCE:
4 PROGRAMMABLE DEVICES
Many financial institutions and credit unions integrate instant issuance with existing central issuance infrastructures.
An integrated solution gives issuers the best of both worlds — highly personalized instant issuance of financial cards and
extremely efficient handling of re-issuance when cards are lost, stolen or expired. Integrated issuance solutions can easily
be configured to align with an institution’s business plans and existing infrastructure.
4 Instant Financial Card Issuance White Paper