BY CHUCK FAGAN
CUSOs must have a keen awareness of the state of the payments landscape. This insight enables CUSOs to make the most informed decisions, the wisest investments, and the best recommendations for how credit unions can position themselves for continued success.
Many states in the U.S. have raised speed limits on their interstates in the past several years. Thirty-six states now have speed limits of 70 mph or above. The “Drive 55” era vanished long ago. I mention the trend toward higher highway speeds because a similar phenomenon has been happening in the payments industry. The speed of business is climbing as innovations – particularly those related to account security, digital and mobile – are delivering greater horsepower and options to the consumer’s payments experience. There appears to be no limit to how fast new technology can be placed in the hands of consumers.
Prior to returning to PSCU, I was removed from direct involvement and awareness of the dynamic and rapid emergence of “game changing” payments products and players. After 30 days getting reacquainted with the latest developments in payments, it is not surprising to me that many credit unions may feel challenged to make sense of the new Technology, much less know if or how to integrate these new developments into their growth strategies and product sets. How do we hold our lanes, but still keep the pedal down and avoid making any wrong turns or hitting a wall?
With consumer preferences driving the strategic decision making for credit unions and their technology providers, it’s clear that CUSOs must have a keen awareness of the state of the payments landscape. This insight enables CUSOs to make the most informed decisions, the wisest investments, and the best recommendations for how credit unions can position themselves for continued success.
The cooperative CUSO model, with the benefits of its size, scale, buying power and strategic partnerships with industry leaders, can help credit unions more nimbly negotiate the twists and turns of complex new payments technologies. EMV and digital wallets, like Apple Pay and the recently announced Android Pay, are great examples of sophisticated technologies that involve the coordination of many moving parts (and multiple partners) to be successfully delivered to members. The depth of resources within a full-service CUSO can relieve credit unions of the burden of managing dozens of endpoints, processes and tasks associated with launching these new technologies into your market.