Two kinds of money – the kind you have and the kind you don’t have

first_img 15SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr “When people think about types of payments, they generally view their money in two buckets – the money they have, including dollars in debit accounts, savings, investments, even rewards points, and the money they don’t have, including the money they can borrow or leverage plus access to other people’s money.” That is one of the thought-provoking concepts proffered by FIS Chief Product Officer, Bob Legters, at CSCU’s 2017 Annual Conference. “If you think about payments in those two categories, how purchases are made depending on which bucket a member uses to pay for something, then you can begin to make decisions to answer questions such as what’s the best tool? What’s the best approach? How do you interact with the member? How do you make it more convenient?”In terms of innovation, Legters said, “Innovation is expensive. Its expensive for the credit union, it’s expensive for the processors, and there’s a curve where the payback takes a while. How do you stay solvent while you wait for the payback? Basic blocking and tackling includes credit, debit, prepaid. Younger generations don’t have wealth or access to money that doesn’t belong to another generation, so how do you put the right tool in their hands to enable payments? You can’t really take a credit risk on someone with no payment history, but you can offer prepaid as a gateway to later offer debit and credit products. You can offer other products that increase the relationship with that member that will drive additional usage.” continue reading »last_img read more