This week, statistics offer some intriguing insights into the state of financial services. Apparently, both card transactions and cash are on an upswing. Three data points tell the story of a credit market in flux: rising interest rates, alternative credit scoring and state-by-state loan growth among credit unions. Finally, as FIs have focused on consumer P2P payments, the B2B market for transfers is set for dramatic growth. Numbers don’t lie, but what are they saying? In our bonus read this week, find out what consumers want from their financial institutions, according to J.D. Power’s latest survey.
The Strangely Simultaneous Rise of Cards and Cash
Looking at global payments data, it’s clear that consumers aren’t choosing between cash and cards: they’re using both at accelerating rates. According to the Bank of International Settlements, the average value of card payments as a portion of GDP rose from 13 percent in 2000 to 25 percent in 2016. At the same time, cash in circulation has also grown 7 =9 percent since 2000. But for both cash and card payments, consumers are looking for more technological innovations to keep up with demand and that in turn is dramatically changing our financial system.
As Interest Rates Climb, How Should Credit Unions Respond?
The Federal Reserve raised a key interest rate by a quarter-point recently, the sixth time in three years rates have gone up. As interest rates continue to rise, how should credit unions re-evaluate both their lending and investment strategies?
Including Short-Term Loan Repayment in Credit Scores
More than half of Americans have credit scores that may put them into “subprime” territory. Should financial institutions consider new, alternative formulas for evaluating credit risk – and, if so, what should the new criteria be?
NCUA State Data: Oregon Leads Nation in Loan Growth
What was revealed in the NCUA’s Q4 2017 data? Federally insured credit unions across the country saw continued loan growth in the fourth quarter, with Oregon leading the way. Additionally 82% of federally insured credit unions showed positive income during 2017, indicating a strong credit union market.
Global B2B Transfers Approach $218 Trillion
Juniper Research forecasts that the global B2B money transfer industry will see a $218 trillion valuation by 2022, up from its existing $150 trillion valuation. “Whilst traditional banks still facilitate the vast bulk of B2B cross-border transactions, new technologies, such as virtual accounts, e-Invoicing and blockchain technology, will aid in driving businesses to solutions which provide savings in time, efficiencies and transparency,” explained Lauren Foye, who authored the report.
J.D. Power: This Is What Consumers Want from Their Banks
In J.D. Power’s recently released 2018 Retail Banking Advice Survey, 78 percent of consumers said they were interested in receiving financial a