Javelin: Credit Unions’ 2013 Challenges Include Securing ‘Trust’ Position

Trust, omnichannels, distributed denial of service attacks and challenges to payment networks’ pricing practices are among the major trends forging ahead for financial services in 2013, says a new report. All of these can affect credit unions’ strategies.

San Francisco-based Javelin Strategy & Research said these trends highlight steps that financial institutions (FIs) must take to bring order to the rapidly changing arena for banking, payments, mobile and security.

Many financial institutions will lose their positions of trust. News Now’s review of articles last year noted that credit unions consistently beat their competitors on the issue of financial trust and member/customer satisfaction, but don’t get cocky.  Trust in FIs is “under assault by a seemingly endless list of players, including Apple, Google, mobile carriers and scores of innovative personal financial management players,” said Javelin.

The winners “will be defined by who does the best job of developing an intimate financial snapshot of the customers, without crossing the line of being too ‘creepy,'” said Javelin. Existing and new players are fighting for market share by offering competitive consumer-friendly services, like personal financial management  (PFM) and alerts.

“It is difficult to rebuild trust once it erodes,” said Mark Schwanhausser, Javenlin’s director of multichannel financial services. “FIs that put themselves in position as proactive, straight-shooting advisers will reap trust and loyalty.”

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