The year is well underway. If you haven’t gotten your fill of trends and predictions for the year, here’s a list of 15. The last two may surprise you.
EMV in the USA, faster payments, and the payments implications of Apple Watch and other wearables top the list of 2015 payments trends in this slideshow from American Banker.
The Association for Financial Professionals (AFP) presents three key insights for 2015, after a year of massive security breaches that caused retailers to rethink their point-of-sale strategies and the advent of Apple Pay. AFP’s insights:
- Fraudulent transaction liability on non-EMV terminals shift to merchants in October 2015.
- Consider embracing the ISO20022 payments standard
- Survey your customers and vendors about their preferred payments methods.
PYMNTS.com interviews payments pundits and reports on 2015 as the year that may set the tone in the payments and commerce industry for years to come. The year will be marked by fine tuning of last year’s trends. A preference for plastic payments will coexist with increasing adoption of mobile in a growing economy. Read more about who’s gone “on the record” about what’s to come in 2015.
For the fourth year in a row, The Financial Brand presents retail banking trends based on interviews with the most respected global leaders in the financial services industry. See the report for trends and predictions in the areas of digital delivery, mobile, customer experience, payments, innovation, operations, security, and product design.
To counterbalance increasing regulatory burdens and technology costs, community bankers need to generate greater profitability from more lending with better loan margins in the upcoming year, reports the Independent Community Bankers of America.
After years of debate the battle lines have been drawn and it is clear what financial services institutions must do to succeed. In the new world order, the winners will be tech-savvy institutions that constantly innovate while managing expenses carefully. However, executing on these objectives is easier said than done.
American Banker presents predictions from industry influencers, who suggest that banks may help customers shop as the increasingly offer digital services, work with innovators to provide access to additional services, and focus increasingly on customer outcomes. GSE reform should continue to lag, and data breaches are expected to increase.
Technology advancements, regulatory mandates, and escalating fraud are combining to remake retail payments, reports Julie Conroy of Aite Group. Trends include:
- The European card market poises for a shake up
- EMV comes to the United States
- Smart customer experiences gain the edge
- Cryptocurrencies are forced to abandon their anti-establishment roots
- Financial institutions outsource digital marketing
Transaction News offers “an optimistic look into the future with news of a resurging U.S. economy after nearly a decade of post-banking crisis sluggish growth.” Predictions include the need for balance sheet efficiencies as a result of rising healthcare and borrowing costs, outsourcing of remittance processing, payments transformation to correct data breaches and to incorporate EMV, and accelerated investment in cybersecurity.
A new Celent report suggests that bank demand for integrated receivables management solutions is growing, as are vendor capabilities. As billers are tasked with reconciling and posting an increasingly diverse and electronic payments mix, banks and vendors are stepping in to help.
Another American Banker slide show in which leading financial services and tech execs report that banks will seek increasingly tech-savvy staff, connect their varied consumer channels, and increase mobile adoption.
My own take on 2015 looks at three developments last year that portend the long-term shift for the future of money, finance, and payments:
1. The legitimation of bitcoin
2. The internationalization of the Reminbi
3. The resilience of the existing payments system
To end this round up, I turn to the irrepressible Robert X. Cringely, who predicts that 2015 will become known as The Year When Nothing Happened. “I think the year of truly revolutionary change will be 2016, not 2015,” he writes. Security is his top concern. “The basic problems come down to identity, communication, information, and money. . . . If we can come up with better ways to define identity, to control communication, to secure information, and to define money then it gets a lot harder to steal any of these. None of these will happen in 2015.”
What will happen, Cringely writes, is that “2015 will definitely be the Year of Monetization, by which I mean it’s the year when the bottom line and showing profits will become a key motivator in almost every market.” Read his predictions. They’re always interesting.