The interconnection of emerging payment technology with millennials, mobile, the Internet of Things, artificial intelligence were recurring themes in the general meetings and breakout sessions at the CSCU 2017 Annual Conference.
Bob Hackney, president at CSCU, kicked things off at the general session. He told attendees “Lots of changes going on, you need to be ready to adapt.”
When it comes to millennials, Jason Dorsey, Co-Founder, and millennials and Gen Z researcher at the Center for Generational Kinetics, told credit union attendees they don’t know the difference between a credit union and a bank. “Before you can win them over you need to address the message.” That message might include appeal to millennials by promoting the non-profit financial institution underpinning of credit unions.
In addition, millennials are going out and getting credit cards with no credit history. This is an opportunity for credit unions to step up and help them.
“Through a generational lens credit unions are at an immediate disadvantage,” Dorsey explained.
Then there Is Gen Z (1986 to present), defined as “Old enough to witness the Great Recession but did not suffer through it.” The so-called throwback generation, see things differently than millennials and are much more frugal with money. They like financial institutions.
Tom Davis, SVP, finance and technology at CSCU, offered a primer on the significance of 50 billion interconnected devices by 2020 through the Internet of Things. Davis said factors to consider is the connectivity through APIs, the role of big data (Google searches 3-5% of the 8 zettabytes of data available today), with 44 ZB available by 2020), and artificial intelligence where IoT grows into the Internet of everything. Davis suggested payments are coming via IoT.
“Payments have become cool again,” Bob Legters, SVP of Product, at FIS, said. He provided a glimpse into the future of robotics, artificial intelligence and machine learning but suggested heading back to basics. “Lending money is the key. Credit unions are under penetrating. Credit is about lending.”
Jim McCarthy, EVP of Innovation & Strategic Partnerships for Visa. “To say the IOT is coming is an understatement.”
However, consumers will decide what devices they will use for payments. Mobile, ecommerce epayments are all components of digital first mindsets. “We will move from a mobile first, to an artificial intelligence-first world.” In that world, mobile becomes the key driver.
