Payment Points to Ponder - Feb

Payments Points to Ponder—Generational Marketing, Deposit Growth Strategy, Regulation Overload

Welcome Back LinkedIn Peeps,

Sorry for the lack of a Newsletter for January. I was out of pocket for a couple of weeks. Now that we are back in the swing, here are some hot topics that I am paying attention to (Note: This was written prior to Capital One news which I will cover that next month) :

?1.?????? Generational marketing is complicated—but necessary!

?2.?????? Regulation is still wreaking havoc on consumers and financial institutions!

?3.?????? Payments, specifically Treasury Management, will be the key to deposit growth in 2024!

Thank you for being a valued part of our community.

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Following Trends Can Be Dangerous on Social Media!

Our last newsletter talked about how important a robust social media strategy is to long-term success. Here’s a lesson on the need to carefully think through what you’re putting out there and the unintended consequences that can result if you don’t. Monzo Bank tried to copy the Spotify wrap approach to expenses, and IT DID NOT GO WELL. ?h/t Mary Wisnewski for posting this on LI (she is a must-follow, BTW).

https://www.finextra.com/newsarticle/43457/monzo-wrapped-prompts-outpouring-of-shame-and-anger

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Treasury Management is the Key to Deposit Growth

Erin Simpson Simpson and the folks at Encore Bank put together a great visual on how to think about your overall deposit strategy and, specifically, the Treasury Management tools. While I did not attend AOBA this year, the visual is worth sharing.

https://www.dhirubhai.net/posts/bradsmithfintech_deposit-treasurymanagement-activity-7158171784150724608-PdIB

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CCCA Still Needs to Be Killed!

This brief video is just a small portion of the great work done by Glenn Grossman in his study of the harmful impacts of the Credit Card Competition Act (link to the study in the post). I highly recommend it. This bill is a loss for consumers as much as it is for financial institutions. Let’s keep the pressure on the legislators!

https://www.dhirubhai.net/posts/americascreditunions_interchangeworks-activity-7161447989876662273-31Fv

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Gen Z Banking from the Eyes of Gen Z

Great observations by Kaitlyn Shevlin Shevlin (yes, she is Cornerstone Chief Research Officer Ron Shevlin’s daughter) on how banks and financial services firms need to think about Gen Z in their marketing. Like father like daughter, Kaitlin lays it out in clear, concise language, and we should all be paying attention.

https://www.dhirubhai.net/posts/kaitlynshevlin_earlier-this-year-i-started-my-first-full-time-activity-7142617082940030978-UUOJ

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Reg II Impacts Have Only Just Begun

As a reminder, we did not see the full impact of REG II for CNP in July 2023. Uber and eBay have just enabled Star and Accel for debit, so expect a spike in transactions. You should be measuring your SMN and DMN volumes by month to monitor the impact of transactions migrating to SMN as merchants enable more and more networks.

https://www.paymentsdive.com/news/fiserv-uber-ebay-debit-network-clients-star-accel-ecommerce-routing/706679

We are gearing up for our 2024 Education Classes. We are offering Payments School, Digital School, and Disruption University. We are also bringing back the Payments Roundtable for 2024 after a great session in 2023. We hope to see you all at our 2024 classes.

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