Key Trends In Retail Banking
Is your Company Leaking Revenue?
Dove and Meta Anounce Partnership
Upcoming Conferences
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Issue #13
The retail banking industry is rapidly evolving. The industry’s competitive dynamics are shifting, and many financial institutions are finding that differentiation is becoming increasingly difficult. Banks are wrestling with changing consumer preferences, and the impact of those changes on customers’ banking relationships—and what that means for financial institutions’ branch footprint, ATM network, and payments business.
This issue of On Payments provides an overview of the key trends that are shaping—and will shape—the retail banking industry, and discusses the implications for financial institutions.
To sign up for an online subscription to On Payments, please click here.
Key Trends in Retail Banking
Growing a retail banking business is becoming increasingly challenging. The yield curve is flattening, reducing banks’ net interest margin. Competition is intensifying, as new, non-traditional players enter the retail banking space. And consumer preferences for financial products, payment methods and distribution channels continue to evolve, providing revenue opportunities, but also introducing new operational challenges.
The changing dynamics of the retail banking business have significant implications for financial institutions. In order to successfully compete in this environment, banks must provide a distinctive customer experience and offer innovative product solutions in order to differentiate their value proposition in the marketplace.
This article identifies five key trends that are shaping the future of retail banking, and discusses the strategic implications that retail banks need to address now.
1. Bifurcation of the retail banking business
2. Lack of differentiation in retail financial services
3. Proliferation and growth of electronic payments
4. Continued growth of de novo branching
5. Increasing demand for ATM access
To read the full article, please click here.
Is your Company Leaking Revenue?
In highly transaction-intensive businesses, revenue ‘leakage’ is almost a certainty. In fact, in telecommunications, many businesses routinely under-collect by 1-3% of total revenues. Applied to banking and payments, many organizations may well be leaving money on the table.
To staunch the flow, some companies have implemented revenue assurance models—a business system that ensures earned revenues from all delivered products and services are actually billed, booked and received.
To learn more, please click here.
Dove and Meta Announce Partnership
We are excited to announce our new alliance with Meta Software, the leading provider of tools to optimize payments processing. Together, we will help leading payments organizations improve the operational efficiency of their check, lockbox, cash vault and remittance processing sites.
With declining check volumes, combined with the need to invest in image technology and manage an increasing array of ACH payments, back office managers face a significant challenge. Meta Software has a proven approach to reduce processing expenses by at least 10%.
To read the full news release, please click here.
Upcoming Conferences
May is going to be a busy conference month, so mark your calendars now!
NACHA is hosting Payments 2006 from May 7-10 in San Diego. Focusing on knowledge as currency and featuring keynote speaker Ric Duques, Chairman and CEO of First Data Corp., the conference agenda covers trends in electronic payments; legal, regulatory, and risk management issues; fraud prevention and control; best practices; emerging opportunities and technologies; and end-to-end electronic payment systems solutions.
On Monday, May 8, Chris Allen will present ‘Contactless Payments: Opportunity or Myth’, which explores the value proposition of contactless payments and its potential for growth. On Tuesday, May 9, Tony Hayes and Jane Yao will present Understanding Consumer Payment Preferences, showcasing key findings from the Dove/ABA 2005/2006 Study of Consumer Payment Preferences.
SourceMedia’s 4th Annual Branch Banking Symposium is taking place in Chicago, May 10-12, and will address the strategic issues facing bank branch executives, providing proven insights into ways in which banks can distinguish themselves from competitors.
On Wednesday, May 10, Jo Preuninger will moderate a panel discussion focused on the role of branches in payments strategy. Panelists, including Thomas FitzGibbon, EVP and Chief Retail Banking Officer at MB Financial Bank, and Jeff Brow, SVP of Payments Strategy at Huntington National Bank, will speak to the importance of the branch banker during new account sales and payments-related customer service issues, payments migration, and how incentive and training plans may support these initiatives.
The Federal Reserve Bank of Chicago is hosting Investing in Payment Innovations: Risks and Rewards May 11–12 at the Chicago Fed. The conference will explore recent payment trends as well as underlying market forces shaping the adoption of new technologies. Conference participants will learn about successful payment investment strategies, end-user benefits to adopting new payment technologies, and security challenges impacting the changing payments marketplace.
On Thursday, May 11, Tony Hayes will moderate a panel on emerging technologies at the point of sale, including alternative payment technologies such as RFID and biometrics. Panelists include Diane Offereins, EVP and Chief Technology Officer at Discover Financial Services, Scott Rau, SVP at JPMorgan Chase, Gary Charboneau, EVP at Duane Reade, and Martha Smith, Senior Director at McDonald's. Panelists will discuss the factors influencing which technologies they promote, ways they persuade customers to adopt new payment instruments, and future developments in payment technology.