July 23, 2014

MasterCard's Ainsworth: Set your digital commerce strategy

July 24, 2014 – MasterCard Group Head of U.S. Markets John Ainsworth, during an Annual Conference breakout session Wednesday, said credit unions should keep things "safe, simple and smart" when working to enhance the consumer experience.

Ainsworth discussed the transition from digital payments to digital wallets. "Digital payments provide credit unions and their members a gateway from physical to virtual mobile, online or device-driven payments," he said.

One trend in payments Ainsworth discussed was lending to consumers by transaction. "Lending by transaction and consumer choice is driving customer loyalty," he said. He noted that people aren't as interested in a $30,000 loan with no interest anymore; they like the per-transaction lending, he said.

Ainsworth also discussed EMV technology. Most credit union representatives in attendance acknowledged that they have or will switch their portfolio to EMV.

Also on Wednesday:

  • Scott Stone, chief investment officer with Pentegra Retirement Services, discussed global capital market trends and planning for the impact on a credit union's portfolio. Stone walked session attendees through the key indicators that will shape their strategy, including bond rates, inflation, defaults, market cycles, equity valuations, fixed income niches, and provided a unique view of the private versus public markets. He also told attendees, regarding current market conditions – a period of "remarkable" capital behavior – that a return to "normal will likely be shocking."
  • Matt Chesky, senior vice president of Insuritas, discussed employing e-commerce strategies and bringing e-commerce to your e-branch. He walked attendees through the differences of online versus digital, touching on online banking, mobile banking, email and text messaging. He also gave credit union attendees best practices to use when developing their strategies, including leveraging digital assets. He said start small, demand data and results and "test … test … and test again."