OMAHA, Neb.–Five trends for 2018 that credit unions should be watching have been released by one company.
Releasing the forecast was D3 Banking Technology, which provides a digital banking platform solution. It is predicting such platforms will only expand next year, stating, “Those who have already established a streamlined digital strategy will extend its reach into additional channels, like small business and commercial banking.”
The five developments D3 expects to see in 2018 include:
- Continuous rapid introduction of new features. “The days when banks or credit unions could release a package of new features and functionality only once or twice a year are long gone. Now, when technology advances and new ways to bank are introduced, customers and members expect those services to be available to them in a matter of weeks, not years. In 2018, API-based architectures that can meet these expectations will become widespread, making dated legacy solutions even less viable.”
- Customer-driven payments. “D3 continues to believe that the payments experience should belong to financial institutions. Recent developments by NACHA in the area of APIs and new bank-owned payment networks demonstrate how the industry is investing to protect that turf. However, banks and credit unions must continue to respond at an increasing pace when consumers demonstrate a clear preference for new payment apps, methods and networks. By failing to do so, they risk being excluded from their customers’ payment experiences, losing loyalty and valuable customer data.”
- Recruiting younger talent and customers. “In 2018, Millennials (Gen Y) are expected to have the most disposable income of any generation. As experienced bankers are retiring more quickly than younger bankers are entering the industry, there will be increased concern around succession planning and remaining relevant. To recruit both potential customers and employees, financial institutions will leverage targeted communication strategies and one-to-one marketing campaigns that resonate with younger generations, including Gen Y and Z.”
- The rise of regional institutions. “In 2017, a few of the more forward-thinking regional institutions leveraged their unique combination of community connection and larger footprint to deliver a superior customer experience, allowing them to compete with national banking providers. Recent scandals at large banks have damaged their brands, well-positioning these regionals to step into the spotlight. This rise of regionals will gain even more momentum in 2018 and beyond.”