There has never been more payment options for credit unions and their members. That is what makes the CSCU 2017 Annual Conference in Orlando so relevant to attendees and their members.
Greg Borchardt, senior director at Visa, and Jeanette Garrett, senior director at FIS provided a debit industry update and suggestions for growth in a workshop including many credit union leaders.
Borchardt sees debit card growth in the 7-8% range with stronger growth in 2017, partially fueled by gas stations coming on line with EMV enabled pumps.
He noted the consumer preference for debit. “Small ticket and ecommerce are areas of significant opportunities. Millennials are the key for future growth.” By 2020, the millennial cohort will represent 30% of consumer spending.
Other areas affecting change is EMV, which is changing the industry and showing a steady increase of transactions; a as well as transactions at the point of sale becoming increasingly important. Borchardt said Visa also observed a shift from signature to PIN and that margin compression is taking revenue out of credit union profits.
“Debit is the most frequently used payment method across nearly all age segments,” Borchardt explained.
When it comes to increasing debit card growth the Visa presenter suggested focusing on increasing debit usage, optimizing debit portfolios, and utilizing Visa tools and best practices. “Being top of wallet is crucial.”
Garrett weighed in on growth opportunities as well. “Small tickets is one of the areas you need to focus on. Millennials are willing to share what they expect but their expectations are high.”
She also advised credit unions to enhance their growth strategy. “You need a strategy.” Another recommendation, start at the beginning with instant issuance of debit cards, and provisioning cards into the mobile wallets. “One hundred percent of instant issues cards are activated.”
She also tied in the role big data can play. “Enhance and grow deposits with data.” She also suggested credit unions need to drive consumer behavior.
