Business & Technology Trends & Innovations: How Credit Unions Can Compete to Win! Mark Sievewright July 18, 2014

Transcription

1 Business & Technology Trends & Innovations: How Credit Unions Can Compete to Win! Mark Sievewright July 18, 2014

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3 Game Changers The 7Cs of Change: Consolidation Convergence Customer Shifts Competition Channels Compliance Cost Management Macroeconomic & Geopolitical Risks Interest rates/inflation Unemployment U.S. housing market Sovereign Debt/EU instability Energy and commodity prices 3

4 In the Future..we will see a major shift in the established way of doing business; it will be replaced with a radically different way of doing business. 4

5 In the Future..we should worry much less about becoming insolvent and much more about becoming irrelevant

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7 7 Technology will be the catalyst for a paradigm shift in financial services delivery, service and information management

8 Technology Spend Priorities Relative size of words reflects the frequency with which they were included in the top 10 list of IT spending priorities for financial institutions from Aite Group, CEB TowerGroup, Celent, IDC Financial Insights, Javelin Strategy & Research and Ovum.

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10 Kodak s Moment Then Now

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13 Mobile Has Impacted Consumers Daily Habits More Deeply and More Quickly Than Most Expected SMS/Alerts Voice Organizer Budgets Banking Payment Commerce /MMS Communicate Control Ticketing IM/chat Social Create Consume Maps Transit Blogs Search Mobile web Pictures Video TV Music Games News 13

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17 The Evolution of Netflix

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22 The Tablet Revolution Is Happening Fast!! Shipments of tablet expected to outpace desktop and laptop PCs combined by 2015 Tablet shipments in 2013 to grow almost 60% YOY The time taken for 10% of the U.S. population to have a tablet was three times faster than smartphones Sources: International Data Corporation's Worldwide Quarterly Media Tablet Tracker, MIT Technology Review

23 reshaping life

24 2012 Fiserv, Inc. or its affiliates.

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26 26 Fast Forward to the Future Augmented Reality

27 reshaping life

28 2 8 Re-imagine Your World - No-Touch Interfaces: The Next Paradigm Shift?

29 Sales & Service Channels are Evolving Rapidly Biometric Recognition? Branch Branch Call Center Branch Call Center ATM Branch Call Center ATM Web Branch Call Center ATM Web Mobile Branch Call Center ATM Web Mobile Tablet? NFC? TV? Social Networks? 29

30 Digital Touchpoints Far Outpacing Non-Digital Biometric Recognition? Branch Branch Call Center Branch Call Center ATM Branch Call Center ATM Web Branch Call Center ATM Web Mobile Branch Call Center ATM Web Mobile Tablet????????????????????????? TV?? NFC? Social Networks? 30

31 The Evolution of Computing Changes Everything Javelin Strategy & Research 31

32 IBM 1301 Disk Storage Unit July 18, MB $2,100/month lease $115,500 purchase

33 Introducing the $1 Billion ipad!!

34 member expectations >everywhere

35 35 Each new iteration of technology has required us to learn new skills to use it proficiently

36 Connected Devices Change How We Transact

37 The Evolving Ecosystem Consumer Online Banking Online Bill Pay and Payments Personal and Small Business Payments Business Online Banking Online Payments Security Online Account Opening and Funding Mobile Banking and Payments Online Transfers PFM and Data Aggregation

38 38 Mobiliti: Features Aren t Enough Anymore

39 Level of Complexity Mobiliti s Evolution Browser (Basic, Enhanced) SMS Smartphone Apps (ios5, RIM, Android) Remote Deposit Capture Actionable Alerts Branch/ATM Locator Pay Bills Funds Transfer (Intrabank) Account/Security Alerts Account Balances/Recent Activity Social Banking Instant Live CRM Digital Receipts etc. Contactless Payments Real-Time Financial Planning Loans & Investments Management Advanced Bill Pay (e.g. add payees, auto pay) Business Banking Offline Registration Merchant Funded Offers/Mobile Coupons GPS Location Services (e.g. targeted offers based on location) P2P Payments Multi-Device Native Apps and Tablet Apps HTML5 Time Voice, Gesture, Google Glass,

40 Digital Channels Vision Future of Digital Banking End Users Technology Financial Institutions Digital as primary channel Digital Omnivores multiple devices, channels Expect relevant, engaging, interactive experiences More choices for digital financial services Shifting from service only to transactional behavior Shifting demographics Constant, Continued Evolution Rapidly evolving device market OS/App Store wars Optimized Browsers Touchable interfaces Increasing Device Capabilities Simple, focused, impactful design as standard Increasing focus and investment in Digital Relevant in Digital or lose to competitors Mainstream Digital requires greater supportability, integration than before Shifting focus from servicing only to sales Increasing complexity of digital and related cost 40

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43 Consumer Interactions with Financial Institutions Source: Tower Group

44 44 In the future, attitudes toward loyalty and service quality will be influenced largely by how much self-service is available

45 45 1 in 8 couples married last year met online

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47 47 Consumer Shifts

48 200,000, ,710, ,000,000

49 49 Social & Demographic Change

50 50 We re Living in the Age of Aging..

51 The U.S. is Undergoing Rapid Population Aging Number of people (millions) % 9.24% 11.31% 12.71% 16.53% 20.46% % 20% 15% 10% 5% 0% US Population 65+ (left axis) Percentage of US Population 65+ (right axis) Source: Government reports 51

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53 Reverse Mentoring Takes Hold 53

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57 Consumer expectations >ease

58 Consumer expectations >immediate

59 The Payments Revolution

60 Shift to Electronic Payments Continues POS Payments Value, Share by Instrument Value in $T, share in % Other 1 Check Debit Credit Cash Other instruments include ACH, prepaid and book entry transfer Source: McKinsey U.S. payments map 60

61 61 Transforming How We Pay Bills..

62 Mobile BillPay Emerging Fast.

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64 64 The Future of the Plastic Card?

65 The Future of the Plastic Card?

66 66 The future of the plastic card may not involve plastic or a card.

67 The Future of the Plastic Card?

68 The Future of the Plastic Card?

69 Common Themes in Recent Payments Innovations New technology is the enabler Getting to scale has been remarkably fast FIs have not played a central role

70 70 The Future of the Plastic Card?

71 71 The Future of the Plastic Card?

72 72 The Future of the Plastic Card?

73 73 The Future of the Plastic Card?

74 The Future of the Plastic Card?

75 Powerful Non-Traditional Competitors

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77 77 In the future, the information associated with a transaction could be more valuable than the transaction itself

78 Data to insight

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84 The Power of Experience When people are inundated with indistinguishable choices, they perceive an experience - with a specific point of differentiation - to be superior. Scott McKain Collapse of Distinction

85 You can and should shape your own future; because if you don t, someone else surely will.

86 Business & Technology Trends & Innovations: How Credit Unions Can Compete to Win! Mark Sievewright July 18, 2014