July 23, 2014

Wetherington: 'Future more about data than payments'

July 24, 2014 – ProfitStars Director of Strategic Insight Lee Wetherington told NAFCU Annual Conference attendees Wednesday how popular mobile banking has become in recent years – a jump from 26 percent of consumers in 2012 to 45 percent in 2013 – and how credit unions can identify future opportunities in this market.

He said people don't make most decisions rationally – for example, buying a house they can't afford – and credit unions need to make sure they are walking people through these decisions. He encouraged credit unions to understand the data they hold and use it toward their and their member's benefit.

Wetherington said 70 percent of consumers don't mind financial institutions analyzing their transactions. He said credit unions should know where their members live and shop, what they like to buy and whether they have accounts elsewhere.

He encouraged credit union attendees to further develop their mobile payment options and stressed that mobile banking isn't about shaving time off the transaction time, it's about collecting data and getting to know your members.

"Mobile/digital wallets affect where you shop, what you buy and how much you pay," he said. He encouraged credit unions to develop their apps so they can be involved in telling their members what to buy; then, they can control the advertising their members see.

He asked attendees, "Who will control and monetize mobile marketing of payments data?" He said, "The future is more about data than payments."