The Most Important Banking Technology of 2013: Digital Payments
Ginger Schmeltzer, senior vice president, emerging payments, Fiserv
In 2013, the lines between the physical, online and mobile channels will continue to blur. Consumers no longer bank exclusively or even primarily at the branch, increasingly preferring the online and mobile channels. Likewise, purchases and payments are increasingly moving from the physical world to the virtual one‚ look at the growth of electronic bill pay, person-to-person payments, e-commerce and m-commerce. However, consumers still visit bank branches, just like they still visit brick and mortar retailers and still mail some checks. Digital payments will only be successful if they can bridge over into the physical world, helping consumers move their money easily regardless of which channel they are using. In the end, it's the consumer and the recipient‚ biller, merchant, friend, and relative‚ who matter most in this equation. Design a digital payment experience that solves the pain points they have -- even if they don't realize now that they are pain points - and they will adopt it. With the ever-growing number of players in this space, someone will get that design right this year, laying the foundation for future widespread adoption of digital payments. Financial institutions have an opportunity to be a leader in the changing world of payments, but they need to act now.
All About Mobility
David Potterton, VP, Global Research, IDC Financial Insights
I think mobility is really changing the game for banks and I don’t know if they fully appreciate to what degree. It's not just another channel, its changing the whole dynamic of how your customers and prospects deal with you. Banks can't dictate how they interact with customers anymore, now they dictate to you and that shifts the power.
There's also a fundamental shift in how mobility is used internally. The bring-your-own-device trend needs to be sorted out. You need to figure out who needs to use what devices, for what applications, and are those applications something we will build or get from a third party? There are implications for security, training and device management. So IT has to work on both sides; external customers interacting with the bank in a mobile, always-connected way and the internal employees as well.
Dr. Stuart C. Wells, EVP, chief product and technology officer, FICO The top challenge facing the bank technology community in 2013 will be leveraging Big Data in a way that benefits banks’ bottom lines. Despite the hype surrounding Big Data, few organizations have figured out how to operationalize it and make it pay off for the business.
Analytics is the key to unlocking the potential of Big Data, and 2013 is the year that many banks will turn to Big Data analytics to move their organizations forward. For example, fraud monitoring today can be inconvenient and even embarrassing for consumers when payment card transactions are erroneously declined. Big Data has the power to enhance individual fraud profiles, making them more dynamic, context-aware and personalized. This can eliminate “false positives,” increasing customer satisfaction and loyalty while making fraud prevention more precise and less intrusive. Big Data analytics is also the key to “Big Marketing,” enabling banks to take a more sophisticated approach to marketing that merges risk management, capital management and mass personalization. The net result is the ability to optimize the t’s and c’s of every offer, the timing of every offer, and the packaging of every offer to dramatically increase campaign response rates, maximize ROI, and manage risk.
Banks that fail to recognize the potential of Big Data analytics will soon find themselves struggling to compete and remain relevant.
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio