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The Future of Credit Cards …. Really!

I recently read an article on “The Future of Credit Cards” published as a result of a conference devoted to travel and credit card rewards.  Executives from Chase, Barclaycard, US Bank, Capital One and American Express were on hand to share their views on the future of credit cards.

My expectation was that they would simply predict the demise of the physical credit card, as mobile technology certainly can replace it almost instantaneously. In one of my February posts entitled “Remember Your Smartphone, Forget Your Wallet”, I addressed this.

However, these execs went beyond the boundaries of simply replacing the physical card. For many, these discussions are not an “epiphany,” individually you may be familiar with some if not all of their talking points. For others, who assume the evolution of technology, they make perfect sense and you ask yourself, “what is the big deal?”

The fact that banks are talking about this collectively is a big deal.

  • Big Data – One of the new buzz words certainly familiar within our community. We talk about it in webcasts and conference sessions but what was interesting in the article is the discussion of leveraging that data across multiple vendors. Can a free Subway drink at your local Walmart be in your future?  (Only makes sense if your Walmart has a Subway)
  • Mobile – Once again not a new concept, but providing realtime “offers” to cardmembers utilizing location and spending data. My wife would love to get a 20% off coupon while standing outside Justice with my daughter.
  • Budgeting Tool/Spend Smarter – This one seemed counter intuitive to me based on the concept of the credit card and habits of some people in using one.

Banks hope to offer cardholders not just deals and offers, but information to help manage spending  offering information to consumers about how they spend and how to spend smarter. This should be interesting to watch.

  • Unbanked/Underbanked – At the conference it was reported that 8.2% of the people did not have a checking or savings account and were referred to as “unbanked.” They also referred to the “underbanked” as people who have a checking or savings account, but use non-bank means of credit, like payday loans. This group represents 20+% of the population and growing.

AMEX partnered with Walmart on the BlueBird prepaid card looking to the next generation who may not want a bank account. As mentioned in the article, it remains to be seen but the next generation might find bank accounts as relevant as land lines, compact discs, and print publications.

  • Less Junk Mail / More Social Media – Note was made that credit card marketing is changing. No surprise here. Rising costs of traditional mail coupled with the communication preferences of the next generation makes this a bit of a no brainer. Barclaycard was noted as leading the way in integrating social media with its credit card products by introducing the Ring card .

David Gold, General Manger of Partnerships for Chase Card Services noted that he wakes up every day worried about what will be written online about his products by bloggers who focus on how many cents they can get out of each point. Certainly something we need to watch today.

What does it mean for the stakeholders?

As a customer:  Some of it sounds pretty good and high tech. Who wouldn’t want great relevant offers, discounts and ways to spend your money smarter?

The credit card company: higher customer retention, decreased costs, increased revenue and more accounts.

As a vendor: Opportunity! These companies will need consultants, software and hardware to implement these changes.

Will be fun to look back on this in a few years.

To read the whole article go to: http://finance.yahoo.com/news/future-credit-cards-080024294.html

Using Their Data To Create Your Future, Now

He who controls the data wins ….

I started to look at content for the upcoming issue of E-Document News and I was not surprised that I ran across yet another article on the demise of the transactional document industry and the impact on print service providers.

I must admit I am a ½ glass full guy but many of these doomsday scenarios and the demise of whole industry or markets is a bit distressing to me as many times the industry or market does not go away, it just looks different.

Let me say this: If you are a print service provider, your best days could still be ahead …. It is up to you, not the post office. Let me share my thoughts.

Let’s make (5) assumptions:

  1. The amount of transactional data is not going down it is going up
  2. The need for that transactional data to be communicated/distributed  to customers will NEVER go away
  3. Volume for printed statements and bills will decrease over time (not tomorrow)
  4. Volume for delivery of electronic documents will increase
  5. Some applications being done on presses will migrate to digital, so digital print volume will increase

So given that today you process transactional data, print and mail bills and statements using digital print technology I would think:

  1. In the future you would have more data to process
  2. That data will have to be distributed
  3. Some information may need to be mailed, sent via email, text  or sent via mobile
  4. There will be more digital print volume as print quality and costs improve
  5. There is HUGE opportunity in information and output (not just print)

So what do you need to do?

Think data and specifically think “who controls the data wins”. What print service providers need to be is the keeper of the data. They want to be the ones that process and format the data but also distribute it: print and mail, email, send SMS, text or support whatever new delivery phenomena comes in the future.

Print service providers should be educating themselves on these ancillary technologies and offering them as a service, one that can generate revenue.  If you just want to print and mail start figuring out your exit strategy. However if you want a bright future become a distributor of information.

Becoming an information distributor

  • Keep abreast of how people communicate
  • Get familiar with all the methods of output and the vendors who offer these products
  • Spend time keeping up to date on the latest digital print technology
  • Invest in yourself and company employees by attending industry events, webcasts, etc.
  • Remember “he who controls the data wins”

By the way, I told the folks at Rollsource that their future is bright also

P.S. –  Since this is my blog, I will shamelessly say you need to attend the upcoming Xplor Users Conference and Vendor Forum April 16-18 in St. Pete Beach Florida. In one place you can:

  • Hear the latest trends and best practices that are driving customer communications
  • Meet with the companies who have made this transition and who are happy to share
  • Spend time with the vendors who can provide the products to grow your business
  • Hear the latest trends presented by the Gartner Group, InfoTrends and Madison Advisors

Visit http://xplor.org/upcoming-events/annual-conference  to view a complete agenda and registration options. Or call 813-949-6170

For my blog readers, (PSP’s and end users) if you are interested in attending please email me at skip@xplor.org and I will send you a promotion code to save on registration. First (5) will save big.