THE IMPORTANCE OF SEAMLESS DIGITAL EXPERIENCES ... half of issuers expect mobile payments to make up at least 25% of debit transactions within the next 5 years (Source: Discover)
210%
growth of total value of mobile payment transactions in 2016
74%
(Source: eMarketer.com, October 2015)
74%
70%
33%
of mobile users say they use fewer cards to make payments
of these users rarely change out their primary card
(Source: Auriemma Consulting, September 2016)
WHAT CONSUMERS WANT... DIGITAL AND TRADITIONAL
01000001 00010011
VALUE, SPEED AND SEAMLESSNESS
WHY IT’S HARD TO GIVE CONSUMERS WHAT THEY WANT... (Source: NetFinance 2016-17 Benchmark Report)
56%
INTUITIVE USER EXPERIENCE FASTER PAYMENTS
44%
41%
46% Different business units own different parts of the lyfecycle
Limited availability of IT resources
Fragmented data resources
Not having a single view of the customer
CO-OP’S SEAMLESS STRATEGY HELPING CREDIT UNIONS MAXIMIZE REVENUE OPPORTUNITIES WHILE STAYING TOP-OF-WALLET
AGGREGATE BEST OF BREED TECHNOLOGIES AND VENDORS
API S UNIFY THE EXPERIENCE ACROSS DEVICES
CONNECT DIGITAL AND TRADITIONAL PRODUCTS WITH A SINGLE, 24/7 CALL CENTER PLATFORM 24/7
SO MEMBERS EXPERIENCE TRULY SEAMLESS DIGITAL PAYMENTS - AND PREFER THEIR CREDIT UNION CARDS
Implement APIs for speed, ease, and to maintain credit union branding
Unify back office tools to enable single sign-on development and unified reporting
1
1
NOW
API
SOON
FUTURE
2
2
Consultation to develop the ideal member experience strategy
Developers portal that simplifies API integration process
Client portal to allow reporting, operations, communications and fraud monitoring from a single web based platform
THE CONSUMER EXPERIENCE WITH SECURITY TODAY
CNP/Account takeover fraud is growing, driven by e-commerce growth and EMV shifting fraud from counterfeit fraud at POS to online card payments
Issuers tighten authorizations in response
More false positives
IMPACT:
Issuer losses from improperly declined transactions (plus reduced future spend from dissatisfied cardholders) outpaces fraud losses 4-to-1
40%
25%
11%
of declined cardholders abandon cards
of additional reduced card usage
drop in cardholder spending 3 months after decline
R E L E N T L E S S S E C U R I T Y D O E S N ’ T H AV E T O M E A N A P O O R M E M B E R E X P E R I E N C E
CO-OP’S RELENTLESS SECURITY Helping credit unions reach and maintain top-of-wallet status through a relentless pursuit of security both for client credit unions and their members
CO-OP NOW: LOW FALSE POSITIVE RATIO IN COMPARISON WITH INDUSTRY:
5:1 CO-OP
<
MORE INTERCHANGE
MORE APPROVED TRANSACTIONS
9:1
INDUSTRY
HIGHER MEMBER SATISFACTION
TOP OF WALLET
CO-OP ROADMAP: TOOLS, REPORTING, CONSULTING
CORE TECHNOLOGIES
| EXPANDED, DIGITIZED FRAUD DETECTION AND PREVENTION CAPABILITIES
INTEGRATION OF MACHINE LEARNING AND AI TOOLS ACROSS ACCOUNT AND CARD BASED PLATFORMS
ï&#x2039;&#x203A;
INCREASED CONTROL AND TRANSPARENCY FOR CREDIT UNIONS AND THEIR MEMBERS
CONTINUOUS STRENGTHENING OF ENTERPRISE ENROLLMENT AND AUTHENTICATION SOLUTIONS
SOLUTIONS PAYMENTS Credit Debit ATM Processing
NETWORKS Digital ATM Shared Branch
BUSINESS SERVICES
ï&#x160;µ Fraud Mitigation Business Intelligence Growth & Engagement Consulting
SERVICE
Member Center
INTERCHANGE GROWTH AND THE IMPORTANCE OF TOP OF WALLET NON-INTEREST INCOME GROWTH CONTINUES
CREDIT UNIONS GROW
Growth Rates (1995 -2015)
%
MEMBERSHIP UP SINCE 2000
LENDING UP
ASSET GROWTH UP
INTEREST INCOME UP
+187%
+624%
+253%
NET INTEREST INCOME
NON-INTEREST INCOME
OPERATING EXPENSES
INTERCHANGE HAS BECOME A CRITICAL COMPONENT OF CREDIT UNION REVENUE 27% OF CREDIT UNION REVENUES COME FROM INTERCHANGE Interchange is of greater importance now than ever before CO-OP is here to build and sustain healthy interchange for credit unions Interchange Revenue Other Revenue
But this change makes credit unions more vulnerable to shifts in consumer payments behavior
This makes digital top of wallet critical NOW.
More so, it can be challenging to stay on top of new and emerging payment mechanisms– and prepare for what’s NEXT.
That’s where CO-OP comes in: Helping you play in all of the card based payment platforms where your members expect you to be and keep you/your member secure while doing it – no matter what comes next.
TRENDS AND HOW TO MANAGE THEM CARDS ARE THE PREFERRED FORM OF PAYMENT
GLOBAL FRAUD ATTACK INDEX TM (Source: Global Fraud Attack Index Q2 2016)
(Source: The Nilson Report, December 2015)
2009 $9.847 TRILLION 10%
31%
22%
Cards
52%
Q1 2016
11%
13% 35%
23%
2019 $14.759 TRILLION
$4.79
215%
Paper Non-Purchases
13%
Electronic
ATTACK INDEX
FRAUD ATTACKS ON THE U.S. SINCE THE OCTOBER 2015 LIABILITY SHIFT
Q1 2015
150%
$1.89
DOLLARS AT RISK PER $100 OF SALES
CONSUMERS WANT: (Source: PaymentWeek.com)
Secure Transactions with ZERO disruptions An aggressive move to faster, seamless, and secure digital payments is expected to require heightened collaboration within and outside of the industry
Payment providers should increasingly turn to value-based customer experience solutions in an effort to drive long-term profitability
Relevant rewards and valuable offers
A smooth, seamless, convenient way to shop
PAYMENTS
TOWARDS A FASTER AND MORE CUSTOMER-FRIENDLY SYSTEM
(Source: Deloitte - 2017 Banking & Securities Outlook)
Cybersecurity, IP protection, and real-time payments will likely top the risk and regulatory agenda for payments
Bots, biometrics, and encryption are expected to be inmediate technological priorities for payement transaction solutions
THE IMPORTANCE OF SEAMLESS DIGITAL EXPERIENCES ... half of issuers expect mobile payments to make up at least 25% of debit transactions within the next 5 years (Source: Discover)
210%
growth of total value of mobile payment transactions in 2016
74%
(Source: eMarketer.com, October 2015)
74%
70%
33%
of mobile users say they use fewer cards to make payments
of these users rarely change out their primary card
(Source: Auriemma Consulting, September 2016)
WHAT CONSUMERS WANT...
WHY ITâ&#x20AC;&#x2122;S HARD TO GIVE CONSUMERS WHAT THEY WANT... (Source: NetFinance 2016-17 Benchmark Report)
DIGITAL AND TRADITIONAL
01000001 00010011
VALUE, SPEED AND SEAMLESSNESS
56%
INTUITIVE USER EXPERIENCE FASTER PAYMENTS
44%
41%
46% Different business units own different parts of the lyfecycle
Limited availability of IT resources
Fragmented data resources
Not having a single view of the customer
CO-OP’S SEAMLESS STRATEGY HELPING CREDIT UNIONS MAXIMIZE REVENUE OPPORTUNITIES WHILE STAYING TOP-OF-WALLET
AGGREGATE BEST OF BREED TECHNOLOGIES AND VENDORS
API S UNIFY THE EXPERIENCE ACROSS DEVICES
CONNECT DIGITAL AND TRADITIONAL PRODUCTS WITH A SINGLE, 24/7 CALL CENTER PLATFORM 24/7
SO MEMBERS EXPERIENCE TRULY SEAMLESS DIGITAL PAYMENTS - AND PREFER THEIR CREDIT UNION CARDS
Implement APIs for speed, ease, and to maintain credit union branding
Unify back office tools to enable single sign-on development and unified reporting
1
1
NOW
API
SOON
FUTURE
2
2
Consultation to develop the ideal member experience strategy
Developers portal that simplifies API integration process
Client portal to allow reporting, operations, communications and fraud monitoring from a single web based platform
THE CONSUMER EXPERIENCE WITH SECURITY TODAY
CNP/Account takeover fraud is growing, driven by e-commerce growth and EMV shifting fraud from counterfeit fraud at POS to online card payments
Issuers tighten authorizations in response
More false positives
IMPACT:
Issuer losses from improperly declined transactions (plus reduced future spend from dissatisfied cardholders) outpaces fraud losses 4-to-1
40%
25%
11%
of declined cardholders abandon cards
of additional reduced card usage
drop in cardholder spending 3 months after decline
R E L E N T L E S S S E C U R I T Y D O E S N â&#x20AC;&#x2122; T H AV E T O M E A N A P O O R M E M B E R E X P E R I E N C E
CO-OPâ&#x20AC;&#x2122;S RELENTLESS SECURITY Helping credit unions reach and maintain top-of-wallet status through a relentless pursuit of security both for client credit unions and their members
CO-OP NOW: LOW FALSE POSITIVE RATIO IN COMPARISON WITH INDUSTRY:
5:1 CO-OP
<
MORE INTERCHANGE
MORE APPROVED TRANSACTIONS
9:1
INDUSTRY
HIGHER MEMBER SATISFACTION
TOP OF WALLET
CO-OP ROADMAP: TOOLS, REPORTING, CONSULTING
CORE TECHNOLOGIES
| EXPANDED, DIGITIZED FRAUD DETECTION AND PREVENTION CAPABILITIES
INTEGRATION OF MACHINE LEARNING AND AI TOOLS ACROSS ACCOUNT AND CARD BASED PLATFORMS
ï&#x2039;&#x203A;
INCREASED CONTROL AND TRANSPARENCY FOR CREDIT UNIONS AND THEIR MEMBERS
CONTINUOUS STRENGTHENING OF ENTERPRISE ENROLLMENT AND AUTHENTICATION SOLUTIONS
SOLUTIONS PAYMENTS Credit Debit ATM Processing
NETWORKS Digital ATM Shared Branch
BUSINESS SERVICES
ï&#x160;µ Fraud Mitigation Business Intelligence Growth & Engagement Consulting
SERVICE
Member Center
INTERCHANGE GROWTH AND THE IMPORTANCE OF TOP OF WALLET CREDIT UNIONS GROW
NON-INTEREST INCOME GROWTH CONTINUES Growth Rates (1995 -2015)
%
MEMBERSHIP UP SINCE 2000
LENDING UP
ASSET GROWTH UP
INTEREST INCOME UP
+187%
+624%
+253%
NET INTEREST INCOME
NON-INTEREST INCOME
OPERATING EXPENSES
INTERCHANGE HAS BECOME A CRITICAL COMPONENT OF CREDIT UNION REVENUE 27% OF CREDIT UNION REVENUES COME FROM INTERCHANGE Interchange is of greater importance now than ever before CO-OP is here to build and sustain healthy interchange for credit unions Interchange Revenue Other Revenue
But this change makes credit unions more vulnerable to shifts in consumer payments behavior
This makes digital top of wallet critical NOW.
More so, it can be challenging to stay on top of new and emerging payment mechanisms– and prepare for what’s NEXT.
That’s where CO-OP comes in: Helping you play in all of the card based payment platforms where your members expect you to be and keep you/your member secure while doing it – no matter what comes next.
TRENDS AND HOW TO MANAGE THEM CARDS ARE THE PREFERRED FORM OF PAYMENT
GLOBAL FRAUD ATTACK INDEX TM (Source: Global Fraud Attack Index Q2 2016)
(Source: The Nilson Report, December 2015)
2009 $9.847 TRILLION 10%
31%
22%
Cards
52%
Q1 2016
11%
13% 35%
23%
2019 $14.759 TRILLION
$4.79
215%
Paper Non-Purchases
13%
Electronic
ATTACK INDEX
FRAUD ATTACKS ON THE U.S. SINCE THE OCTOBER 2015 LIABILITY SHIFT
Q1 2015
150%
$1.89
DOLLARS AT RISK PER $100 OF SALES
CONSUMERS WANT: (Source: PaymentWeek.com)
Secure Transactions with ZERO disruptions An aggressive move to faster, seamless, and secure digital payments is expected to require heightened collaboration within and outside of the industry
Payment providers should increasingly turn to value-based customer experience solutions in an effort to drive long-term profitability
Relevant rewards and valuable offers
A smooth, seamless, convenient way to shop
PAYMENTS
TOWARDS A FASTER AND MORE CUSTOMER-FRIENDLY SYSTEM
(Source: Deloitte - 2017 Banking & Securities Outlook)
Cybersecurity, IP protection, and real-time payments will likely top the risk and regulatory agenda for payments
Bots, biometrics, and encryption are expected to be inmediate technological priorities for payement transaction solutions