Who is faster?

I recently had a discussion with a consultant on emerging issues and regulatory trends surrounding changes in the payments’ frameworks and technology. The changes in this area are coming rapidly—particularly with a younger generation growing up on digital-only platforms and the internet. The Gen Z group alone represents 40% of global consumers. So, it is no accident that regulators are actively engaged in numerous efforts, from faster payments, to revising regulatory frameworks to allow the technology to provide new and innovative solutions, and to provide for consumer protection. It is difficult to read the “tea leaves” on how all of this change will transform our industry.

The first article below, shows the Financial Stability Board delivering roadmaps to the G20 on cross-border payments. The European Union is working on its Digital Finance Strategy that includes measures on innovative and competitive payments markets and efficient international payments. We are likely to see greater direction in this area come out of the G20 meeting in November under the Saudi Arabia Presidency. Staying on top of all these changes will be critical over the next several years.

For credit unions, the challenge is figuring out who are going to be the winners and losers in all of these changes, and where a credit union should best place its resources to remain competitive in these new and emerging markets, and regulatory environments. If we as an industry are too slow to change or keep up with the times, it is possible that we will be left behind or fall prey to some disruptive force.

That brings me to the question that I asked the consultant about who would be the winner in the faster payments’ reforms that are forthcoming. His answer: “Whoever is faster.”

 

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