Top Drivers of Change Important to CUs
By: Stacy Styles, Vice President and Senior Business Leader, Mastercard.
Technology and other drivers of change are dramatically reshaping consumers’ lives and the environment in which we – and they – operate. As a result, we face a future that challenges us with ever-growing complexity.
To better anticipate and shape that future, Mastercard partnered with Kantar Futures to identify and analyze the changes taking place over the next 4- 5 years. Our approach was a combination of proprietary research (consumers, financial institutions, and merchants), expert interviews, and desktop research, workshopped with a team of accomplished futurists.
Our objective was simple: to explore specific opportunities for ourselves and our partners, so we can better prepare for and shape this future. Learn more about Mastercard's research by listening to this insightful podcast. Click here to listen.
Through this work, we identified 40 drivers of change in areas such as demographics, values and attitudes, technology, consumer experience, macroeconomics, and much more. We grouped these drivers into three critical areas:
Relationships: Reimagining how to define, connect and build relationships with consumers- Technology: Harnessing the power of technology to establish responsive, seamless, and secure consumer experiences
- Standing for something: Recognizing the growing importance of embedding greater purpose in the corporate charter
Credit union leaders should focus on these drivers of change:
- Emerging entrants in the financial services landscape: Smartphones and digital tech are enabling mobile operators, tech giants, and startups to jockey for position in the financial services industry. FinTech firms are unburdened by regulators, legacy IT systems, branch networks, and the need to protect existing businesses; and some, like Venmo, have become quite successful. Where they are vulnerable, and credit unions are strong, is security.
- Rising member service expectations: People’s expectations for more efficient, enhanced, and human-centric member services are growing as consumer choice proliferates, access to information increases, and it becomes easier to communicate via online platforms. Creating a culture of service will help establish the long-term relationships critical to success. Learn more in Mastercard's podcast series. Click here to listen.
- Increasing expectations for anything on demand: Companies are providing more on-demand solutions, whether through same-day deliveries or via mobile apps. This is altering baseline consumer expectations: they can get whatever they want whenever they want it. Financial services companies with Big Data will continue to play an important role in enabling us to meet people’s desires and expectations and to recognize them as individuals, not just accounts.
- Growing desire for customized and tailored products: There is a rise in demand for personalized products that fit not only the individualized tastes of consumers but also begin to anticipate their needs. As one credit union executive we interviewed said, "People aren’t looking for individual items anymore; they want to have a full-service experience that will not only solve their problem but excite and delight them at the same time.” Learn more in Mastercard's podcast series. Click here to listen.
- Ubiquitous and constant social connectivity: The integration of mobile devices into Americans’ daily lives is leading to continuous, seamless, and instant social connection. 66% of Americans agree that they could not get by without their smartphone. Mobile needs to be at the heart of everything we do.
- The social path to purchase: The center of social trust has moved from large, stable, corporate brands to peer-to-peer networks. Due to social media and online ratings, consumers feel comfortable trusting their peers, despite the fact that they may be strangers. They are quick to share what they love – and what they don’t – about any interaction they have with a business.
For a more in-depth conversation about these trends, listen to the podcast series with Stacy by clicking the links below:
Mastercard is the NAFCU Services Preferred Partner for Credit, Debit, and Prepaid Branded Products. More educational resources and contact information are available at www.nafcu.org/Mastercard.