Free White Paper: Future of Payment Systems for CUs Posted by Association of Vermont Credit Unions on 1:29 PM

In 2011, the Filene Research Institute issued "Innovations in the Payment Ecosystem" in which it reported that after three decades of relative stability, the payments system was on the verge of an inflection point. The six highly interconnected factors driving change included:

1. The growth of mobile,
2. The emergence of an always-connected world,
3. Software developments in cloud computing and apps,
4. The availability of data for behavioral targeting,
5. Cheaper and easier data analysis, or mashups, and
6. Regulation that increasingly cuts off old lines of revenue.

Two years later not a lot has changed, confirming a Bill Gates’ quote, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10.”

Filene has issued a new 2013 free research paper on the Future of Payment Systems for Credit Unions" in which it focuses on the effect on community chartered credit unions:

• First, it examines the definition of disruptive innovation and how it relates to the payments ecosystem.
• Second, it updates the current state of payments.
• Third, it provides guidance on actions to take to prepare for the future of payments system, and 
• Fourth, it lays a framework that provides early warning signs to true disruptive innovation in the payments ecosystem.

This white paper offers a research overview, provides information, and suggests actions that credit unions can take now to avoid falling victim to the last, less-well-known part of Gates’ quote: “Don’t let yourself be lulled into inaction.”

Download the Future of Payment Systems for Credit Unions here.