Payments Innovation

The Digital Shift

Elan

“FIs will need to take a hard look at their digital strategy and service capabilities and focus on ways to deliver the same level of service as they would in a branch.”

Fortunes will be won or lost based on the provision of great customer experiences. Now, financial institutions need to put meaning to the words. “I think the lasting lesson is the need to balance the impact on customers with the need to manage the inherent risk brought on by such a crisis,” said Jeff Chernivec, senior vice president of strategy at Elan. “The other lesson is the need for flexibility and speed of response. No other event in our lifetime has had such a dramatic impact on card customers’ purchase habits and interactions with their surroundings.”

The following is an excerpt from How 35 Execs Are Powering The Great Digital Shift Of 2020 (And Beyond), contributed by Jeff Chernivec, senior vice president of strategy at Elan.

There are many opportunities that we see emerging in the second half of 2020. Economies are starting to open and there’s already been a significant spend recovery in the past couple of months. Credit card issuers will see even more recovery in the coming months. Issuers will likely retool their underwriting strategies to address the near-term risk impacts of COVID-19 to reengage in card marketing efforts. While I see this more as a necessity than an opportunity, as issuers move past short-term assistance with customers hit hardest by the pandemic, they will need to shift their focus to managing risk over the remainder of 2020 and into 2021.

As customers have been forced to shift to a digitally-focused interaction with their financial institution (FI) clients, they will no doubt demand the same level of service and capabilities regardless of channel. FIs will need to take a hard look at their digital strategy and service capabilities and focus on ways to deliver the same level of service as they would in a branch. Card issuers will need to continue to develop and deploy means of contactless card usage and instant card access via digital wallets. Marketing people will need to work closely with their technology teams to determine how to effectively deliver cross-sell and card offers in digital customer interactions.

From all that I have read about the response of financial institutions, I have been highly impressed with the focus on helping customers ease the financial burden of the pandemic. FIs were quick to implement ways for card customers to skip payments and stop interest accruals.

I think the lasting lesson is the need to balance the impact on customers with the need to manage the inherent risk brought on by such a crisis. I think the other lesson is the need for flexibility and speed of response. No other event in our lifetime has had such a dramatic impact on card customers’ purchase habits and interactions with their surroundings.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW