In today's overwhelmingly fluid mobile payments atmosphere, consumers are always looking for the latest tool, app or capability to make their lives easier. It can be tough for a financial institution to keep up, much less stay in front of the trends. Banks and credit unions that have the best long-term success will be those with the foresight to plan for the unforeseeable.
Competing in the new mobile marketplace comes down to the same basics that have always been in play for financial institutions: Know the consumer, look for new ways to meet their needs, earn their trust, communicate with them and keep their information safe.
Once a card is in a mobile payment app or service, it tends to stay there. The key is to get that card there in the first place.
Financial institutions have a key advantage over the newcomers to the payment space – history. Cardholder data is the way to building stronger, more enduring relationships – the kind of relationship that puts a card at the top of a consumer's wallet. By harnessing that information, analyzing it, and using it to target cardholder habits and needs, financial institutions can stay ahead of trends and offer cardholders what they want just as they realize – or before they know – they want it.
It's important for financial institutions to stay up to date with the latest trends while also ensuring their mobile payments strategy is nimble. Supplier strength provides a differentiated advantage. The right partner gives the financial institution the support it needs and the agility cardholders want.
Research shows that despite the plethora of new players in the market, consumers generally look to their financial institutions as their trusted partners for money matters. Financial institutions have an obligation to protect that trust by keeping up with what's happening in the market. By working with an organization's own trusted partner and expert in mobile payments, financial institutions can provide the guidance their cardholders need.
Once a card is in a mobile payment app or service, it tends to stay there. The key is to get that card there in the first place. Powerful marketing helps put a financial institution's brand top-of-mind and its card top-of-wallet, but marketing is not effective unless it reaches consumers. Social media, mobile website banners and text alerts are most likely to reach mobile payment users.
Whatever financial institutions can do to provide peace of mind to their cardholders will go a long way toward keeping the relationship strong. Reducing risk through a comprehensive suite of technology tools and policies across the many channel preferences for cardholders is critical in today's fast-paced and security-minded society.