Making the payment is not the part of the customer experience that consumers want a digital wallet (whatever that might be) to improve. The mobile moments of opportunity–to improve the customer experience, to add new levels of convenience to the customer experience, to help consumers make better/smarter decisions about how they manage and spend their money–occur before and after the payment.
According to Callahan & Associates, at the end of Q1 2014, US credit unions had more than 98 million members. That implies that almost one in every three Americans belongs to a credit union (implies, because if there are people who belong to multiple CUs, membership penetration isn’t that high). So why would I think…
A FinTech VC (no, not Matt Harris) writes: “It’s not hard to imagine that a majority of people in the U.S. could be banking with startups in the next three to five years.” If you’re on LSD, maybe.
If you have an impulse purchase problem, the Amazon Fire Phone is not the phone for you. If you need help managing your financial life, don’t think that Amazon–through it’s amazing ability to gather, store, analyze, and deploy data–is going to help you anytime soon. The Fire Phone presents a threat and two opportunities to banks.
A well-known research firm recently claimed that within two years, 25% of the top 50 global banks may launch app stores to enhance customer service and make innovative banking applications easier for customers to find, and that the practice would “snowball” to other FIs. I disagree–read why.
Tom Brown of Second Curve Capital nails it: “If the federal government wants to put an end to payday lending, Congress should act, or at least the CFPB should write some rules that would restrict it.” The fact about payday loan borrowers is that they are not all low-income consumers. And for many payday loan borrowers, it’s not a choice between a payday loan and overdrawing on the checking account–it’s both.
If “customer-centric” isn’t the worst-named buzzword the business world has come up with, it’s pretty damn close. An American Banker article provides advice to banks on becoming customer-focused. Unfortunately, the prescriptions won’t solve banks’ problems.
You know what we need? A common, agreed-upon definition of what disruption is. Discussions typically focus on individual firms that are talked about as potential disruptors. I hear little, however, of exactly what new technologies they’re bringing to the table that would cause disruption, or of technologies that existing banks aren’t already adopting and deploying en masse.
Not that he needs my sympathy, but I kinda feel bad for Simple CEO Josh Reich. He mistakenly emailed an internal document to a reporter from some publication called Quartz, who–surprise! surprise!–published the not-so-ready-for-prime-time statistics, and claimed that Simple “seems to be struggling to sign up customers.” Both sides made some mistakes here.
A common trait among emerging generations is a desire to break from the past, and overcome the sins of their fathers (not mothers, because women are perfect). What’s funny about the newest young generation is their interest in disruption within the payments industry. Unfortunately for disruptors, there are speed bumps on the path to payments disruption.