Vantiv POV - The Year for More - 2016 Trends for Financial Institutions
The past year brought about some of the biggest changes the payments and financial services industries have ever seen with the EMV liability shift in October. As financial institutions continue to adopt EMV and heighten security measures, what will 2016 bring?
Vantiv's point of view? 2016 will be “The Year for More.” From EMV and new terminals to mobile acceptance, this year will bring more change and personalization to keep cardholders happy and safe. Interested to learn more? Here’s what to expect in payments for financial institutions in 2016.
More EMV, Chip Cards and Fraud Protection
According to a report by the Retail Payments Risk Forum, in recent years chip-and-pin technology outside the U.S. reduced fraud at point-of-sale (POS) terminals, but increased online fraud. For example, France saw a 35 percent drop in card-present (CP) fraud, but a 364 percent increase in card-not-present (CNP) fraud. The United Kingdom saw a 58 percent drop in CP fraud, but a 100 percent increase in CNP fraud. This is causing financial institutions to look at additional fraud protection options and change their security strategies as more EMV cards will be issued in 2016, resulting in further fraud shift from POS to online.
More Mobile Acceptance
Today, consumers have a wide-array of mobile payments and technology options to choose from, including Chase Pay, Apple Pay and Android Pay, with new options popping up regularly. In 2011, there were 57 million mobile banking users in the U.S. According to a report by Statista, that number is projected to reach 111 million by the end of 2016. With a large customer base and competitive market, mobile will be the go-to way for financial institutions to communicate and engage with their customers.
For mobile to truly become the default method for financial institutions to connect with their customers, personalization will be key. In a study from CGI on consumer demands for bank and credit unions, 91 percent of respondents believe it’s important to be known by their provider, yet 62 percent say their provider doesn’t know them. In 2016, expect more consumer visibility through predictive analytics to better understand cardholder needs. This encompasses a 360 degree view of customers by knowing what they want, what they need and when they need it.
With the overarching theme of 2016 being “The Year for More” – specifically how it relates to the customer – there will be major changes for financial institutions. More security through EMV, chip cards and fraud protection, more communication through mobile and more personalization based on predictive analytics. It’s sure to be an exciting year for financial institutions and their customers.
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