CU Accelerate Discusses CU and Emerging Payment Trends
The Cooperative Credit Union Association held the CU Accelerate conference on April 24 through April 26 in Chatham, Massachusetts. The topics covered during this event were key issues for credit unions in 2015, social media, emerging payments trends, credit union mergers, maximizing non-interest income, and lending strategies for growth.
Jay Johnson discussed the trends for Credit Unions in 2015. Credit union credit card balances and market share are at the highest they have ever been. Auto lending and mortgage market share are both up, with mortgage market share being at its all time high at 16.3% and 8.4%, respectively. Johnson states that members are borrowing more and more members are using credit unions as their main financial institution.
Leah S. Work discussed the trends in payments such as EMV and Apple Pay. When transitioning into EMV it is important to keep in mind member education as well as staff training. Before your credit union starts the transition process, it is important to consider such items as your budget, whether or not your members are savvy with payment technology and if your members live overseas or travel. Leah discussed that the transition process is usually 23 to 24 weeks from the project initiation to its launch.
Another payment trend that was talked about by both Work and Robb Gaynor was Apple Pay. Apple Pay has been a big hit since it debut with 1 million cards registering within the first 72 hours. This payment method is secure with its use of “tokens”, which protects the members cards, and easy to use, however it has a limited reach. Is your credit union deciding whether or not it should use Apple Pay? Work states that the risks of not participating are “if you don’t offer it someone else will”, and that your credit union might miss out on the the opportunity to reach out to the Millennial audience. The length of time it takes to set up Apple Pay is generally seven to eight weeks.
Technology is ever-changing, and members are using it more for mobile payment. Mobile has grown 2-3% each month. iOS is dominate when it comes to mobile apps with 60% of total users, and those who use iOS move their money 80% more than android users do. Gaynor gives the statistics of members using mobile payments as 18% of members use debit card management, 25% use mobile check capture, 15% use picture pay and 10% use future cash calendar. The fact is, according to Gayor, “consumers want mobile payments. Credit unions can provide mobile payments. Credit unions can be at the center of mobile payment innovation”.
More about the CU Accelerate 2015 conference can be found here.