Strategy & Research’s analysts lay out a roadmap
for readers by identifying the top 10 transformational trends in 2013.
The trends report highlights the steps providers need to take to bring
order to the rapidly changing arena for banking, payments, mobile and
security. These trends depict a constantly evolving financial services
arena, in which tools like mobile and social media are rejuvenating
financial services delivery through multiple channels, which are proving
to be both an asset and a challenge for financial institutions (FIs).
Javelin Strategy & Research’s renowned analysts identified the
following trends for 2013 as a representation of the changing industry:
Many FIs will lose their positions of trust. Trust in FIs
is under assault by a seemingly endless list of players, including
Apple, Google, mobile carriers and scores of innovative PFM players.
While FIs still have consumer trust on their side, 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.” Because so many new players are fighting FIs for market share
by offering competitive consumer‐friendly services, like personal
financial management (PFM) and alerts, FIs must act quickly in
2013 to demonstrate they understand their banking customer and put their
financial interests first.
“It is difficult to rebuild trust once it erodes,” said Mark
Schwanhausser, Director of Multichannel Financial
Services at Javelin. “FIs that put themselves in position as proactive,
straight-shooting advisers will reap trust and loyalty.”
Omnichannel is the next evolution in banking trends.
Consumers already trust their financial information with multiple
channels, but the use of these channels and their relevant data is often
not interconnected and unified into one integrated, branded experience.
An omnichannel experience means that consumers can select any device and
any channel and always have a secure, convenient and familiar way to
transact financially. This does not mean solutions will be
identical across all channels, but that banking consumers’ experiences
will be harmonious, connected and consistent.
“To correct current shortcomings, FIs will need to change their
perception of omnichannel banking as necessary rather than novel”, said Mary
Monahan, Executive Vice President and Research
Director, Mobile at Javelin. “Moreover, for FIs to increase or even
maintain their competitive positions, they need to invest in developing
an integrated architecture wherein data and platforms can seamlessly
converge while enhancing the quality of the brand experience.”
Distributed denial of service attacks will go mobile. The
mobile world has drawn the interest of hackers, as evidenced by the
burgeoning number of malware being detected by security firms. With
two out of every three mobile devices left unprotected, these devices
will prove to be an attractive new attack vector for the deployment of
attacks by hackers to cripple IT infrastructure.
“FIs and other organizations with a vested interest in the
security of the mobile channel will be best served through a partnership
with security vendors with the goal of increased adoption of mobile
security software,” said Al
Pascual, Industry Analyst of Security, Risk and Fraud
at Javelin. “Deputizing consumers through education on
mobile security threats and encouraging use of anti-malware, firewall
protection and other security solutions will have far-reaching benefits.”
Retailers will increasingly challenge payment networks’ pricing
practices, taking greater control of the payments business. Traditional
card networks still control transaction volume, but
implementation of the Durbin Amendment has been a game changer
for retailers, which have used this legislation’s success as a blueprint
for aggressively expanding their influence. Merchants are in the midst
of challenging the Fed’s implementation of the Durbin Amendment and have
further powered their way toward increased control of their businesses’
payment choices and related costs. In 2013, merchants can be expected to
continue to use collective actions, innovation and assertive
negotiations to gain increasing control over payments options and
“To help merchants remain vested in existing payments options, providers
should identify new ways to support retailer’s payment needs and
reinforce the merchant value proposition,” said Beth
Robertson, CCM, Director of Payments Research at
Javelin. “Alternatively, traditional players can seek
opportunities to form partnerships or leverage merchant
developments in pioneering ways.”
To Learn More: 10
Trends For Financial Services in 2013: Forging
a New Frontier for Banking, Payments, Mobile and Security.
About Javelin Strategy & Research: Javelin
Strategy & Research provides strategic insights into customer
transactions, increasing sustainable profits for financial institutions,
government, payments companies, merchants and other technology
providers. Javelin’s independent insights result from a uniquely
rigorous three-dimensional research process that assesses customers,
providers, and the transactions ecosystem.