Expect the unexpected. That's the world we live in today, especially for those of us in financial services. The only thing advancing faster than technology is consumer expectations, and keeping up with those expectations is a necessity. Because if we don't, someone else will. New entrants are redefining financial experiences and challenging incumbent financial institutions by driving technological innovation in pursuit of meeting changing consumer expectations.
This week, Fiserv is taking part in Money20/20, which has quickly become one of the premier events for payments and financial services innovation. I was invited to share my thoughts on the trends impacting banking with the Money20/20 audience and discussed the top areas I believe are critical for financial institutions. Counting down the top four:
4. Power of Analytics
- There is no shortage of data today, and volume is growing exponentially – of all the data in the world, 90 percent has been created in the last two years. Analytics provides the power to turn the sea of transactional data that financial institutions already possess into actionable information.
- There is a significant opportunity to create unique value from transactional data because it captures actual consumer actions. Analyzing this data will enable financial institutions to make better decisions, take on less risk, provide better services and deliver more value to customers. Analytics will power a transition from relationship management to the holy grail of customer engagement, which is an absolute mandate in the digital age.
3. Reimagine Lending
- People want what they want when they want it, and that includes access to funds to make an important purchase, pay an unexpected expense, or for a myriad of other reasons that play out in everyday life. As the pace of life quickens, faster access to funds becomes not just something people want, but something they need.
- As lending decisions move closer to the moment of need, unique opportunities will be created for those financial institutions agile enough to move with it.
2. War for Payments
- The "war" for payments is not just a metaphor, it's real. Why? Because the opportunity is substantial, and the stakes are rising. Excluding cash payments, there are $75 trillion commercial and retail payments made through 150 billion transactions each year.
- The emerging payments areas to watch are business-to-business (B2B), person-to-person (P2P), and mobile. B2B payments are ripe for greater efficiency through digitization, and P2P will continue to expand as fewer people carry cash and paying others digitally becomes the familiar and preferred option. Within mobile payments, securing the top of wallet spot will be paramount.With the right payment strategies, financial institutions can win this battle.
1. Digital Experience
- No surprise here, No. 1 on my list of top areas to watch is digital. This is where it all comes together – the intersection of rising expectations and customer value – and it's really about engagement. With an estimated 50 billion connected devices in use by 2020, getting this right is a game changer. The world might be mobile-driven, but a true digital strategy requires an omnichannel approach. That means the ability to seamlessly cross over any access point the consumer deems critical, whether that is a branch, a store, or a mobile device, and incorporate new technologies like biometrics and voice. When it comes to digital, it is not a matter of "if" or "when," it's "now."
- An essential element of great experiences is trust. I think the notion of digital trust is quite compelling. It's the confidence that something you ordered online will arrive on time, or that the payment you made as part of that order is secure. Financial institutions own trust in the physical world, but need to advance these capabilities to form strong trust in the digital world. This is particularly significant as biometric forms of identification and interaction become more prevalent, and protecting data becomes equivalent with protecting the very characteristics that make you, you.
While there are many uncertainties in predicting the future, there is a 100 percent guarantee that the world will not be the same tomorrow as it is today. From analytics and lending to payments and digital experiences, change is certain to happen. That means we have to move with speed, decisiveness, conviction and agility today to be prepared to take advantage of the opportunity we expect tomorrow.
Learn more at Fiserv Forum 2018, which features top-of-mind topics that can help you drive growth, efficiency and innovation.