MADISON, Wis.-With membership continuing to increase and the low-rate environment continuing into the foreseeable future, one person says CUs should focus on payments strategies in the second half of 2013.
Chuck Fagan, CEO of the Credit Union Executive Society, was formerly with PSCU Financial Services, and is well aware of how the payments market is evolving and the critical role it will play.
"That's such a complex environment to understand, and we're seeing credit unions invest in a single position that is solely focused on that aspect that represents such a revenue opportunity-but also a way to connect with that younger demographic," said Fagan.
Fagan agreed payments is one area where small CUs may struggle to keep pace, but he stressed that state leagues and even larger CUs have programs in place to help small credit unions partner with them to "allow entry into the payments channel by letting [small CUs)] run it through [larger CUs'] systems."
Those can even end up as mentoring relationships for small CUs, said Fagan.
Need For Analytics
Looking toward the second half of 2013, Fagan noted credit unions will need to continue to focus even more deeply on analytics at the individual member level. That means relying on industry partners and experts on the subject, rather than just relying on in-house analytics that might be cheaper but not as specific as those from an outside source.
"Capital One, Bank of America, all of those guys know a great deal about consumers, and all they do is sit at the high-end MBA schools and hire that analytical crew that's coming out," he said. "Credit unions really need to be in that game to drive revenue."
