ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

edition: October 1, 2024

The future of financial education: 5 trends to watch


As members’ financial needs grow more complex, credit unions must rethink how they deliver financial education. People now expect personalized, data-driven solutions that fit their unique circumstances, and the tools that worked in the past no longer meet those demands.


If your credit union doesn’t adapt, you risk losing member engagement and missing chances to build loyalty, especially as fintechs introduce new standards.


By embracing the following five trends, you can position your credit union to lead in financial education, ensuring you remain at the forefront of member service and innovation.


Trend #1: Artificial intelligence and financial education

Artificial intelligence (AI) is making financial education more personalized and accessible.


Read more at CUInsight.com

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What matters the most to Americans holding checking and digital-only bank accounts


Understanding the preferences of US adults when it comes to banking is essential for financial marketers and brands. YouGov's new tool, Financial Services CategoryView, provides valuable insights into these habits and preferences.


According to the data, 78% of US adults have a checking account, and the features they value most are varied. Leading the list, 68% of account holders consider online and mobile banking crucial. Close behind, 66% appreciate low or no monthly maintenance fees. ATM access is a priority for 58%, and 52% find online bill payment services essential. Only 15% consider mobile wallet integration as an important feature.


Additionally, three in 10 US consumers have a bank account with a digital-only bank (30%), meaning their banking services are handled exclusively online. Among these digital-only bank customers, three-quarters say their main account is with a digital-only bank (75%). The primary reason for this preference is the ease of money transfer, noted by 55% of users. 


Read more at YOUGOV.COM

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Surging Credit Card Surcharges May Push More Consumers to Cash, Debit


Surcharges for credit card purchases are growing, prompting many consumers to switch to cash or debit — or even rethink purchases entirely. In fact, some studies suggest that merchants lose more business because of surcharges than they recoup from the fees.


You’ve probably witnessed this scene at a fancy restaurant, or experienced it yourself.


The waiter brings the check to a couple who has just finished dining. The sharper-eyed of the spouses — people who are dating are less likely to dwell much on the bill, afraid of seeming tight with a buck — runs an eye down the slip and stops when they see “credit card surcharge” and the disclosure that the restaurant charges 3% or 4% for the privilege of paying with plastic.


The waiter is beckoned over to answer the question, “What’s this all about?”


Read more at The Financial Brand

MONEYTREND 2024
October 28-30
in TAMPA

No, not all companies are abandoning diversity, equity and inclusion. Here’s why.


Amid a high-profile backlash, many businesses are scrutinizing their policies. But the vast majority end up sticking with DEI, in part because it’s key to growth.


Since Tractor Supply upended its longstanding diversity, equity and inclusion practices in June, more retailers, brands and other firms — including Lowe’s, Harley Davidson, Ford Motor Co., Indian Motorcycle, Molson Coors and Jack Daniels owner Brown-Forman — have similarly abandoned theirs.


These moves are reflective of an increasingly tenuous environment for any company or human resources department aiming to assemble a dynamic workforce and leadership team, according to panelists who spoke at the Society for Human Resource Management annual conference. As a result, many companies are scrutinizing their DEI policies.


Read more at HRDive.com

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Labor market closer to pre-pandemic ‘normal’ — which could lead to steady 2025 salary budget growth, Mercer says


The worker shortage in 2024’s final months is comparable to that of 2019, analysts said during a Sept. 18 webinar.


Data from consulting firm Mercer projects steady increases to organizational salary budgets in 2025 after a dip in budget growth between 2023 and 2024, analysts said during a Sept. 18 webinar.


Actual budget growth for 2024 stood at 3.6% for total pay increases and 3.3% for merit increases, down from 4.1% and 3.8% in 2023, respectively. Mercer projected that 2025’s growth rates would equal those of 2024.


Analysts said that a tight labor market persists even as hiring demand has cooled over the past year, contributing to the projected steady budget growth. Mercer’s figures differ from those released earlier this month by The Conference Board, which predicted a 3.9% increase for salary budgets in 2025 thanks to a shrinking labor supply.


Read more at HRDive.com

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As Fintechs Stumble, A New Breed of ‘TechFins’ Move to the Fore


TechFins are emerging as crucial partners for financial institutions navigating the digital landscape. These technology-focused companies offer innovative solutions that help banks and credit unions modernize their platforms, leveraging data analytics, AI, and advanced security measures. By providing scalable, always-on systems with actionable insights and flexibility, TechFins enable financial institutions to deliver personalized experiences and stay competitive in a rapidly evolving market.


The financial services industry is at a pivotal point — and institutions of all sizes are navigating the demand for digital products and services that will have the most impact on consumers’ financial journeys. The highest performers and most digitally mature banks and credit unions are differentiating themselves using modern data solutions and consider technology a major advantage.


This tech-forward industry highlights the innovation and necessity of a niche business category: the TechFin. TechFins are companies with a platform and strong technology expertise that offer product capabilities and features to support financial institutions through curating a wide array of solutions and applications to transform and modernize their digital platforms and operations. The differentiation and value of TechFins focuses on the critical capabilities of technology financial institutions should invest in to maximize their growth.


Read more at The Financial Brand

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How to Crack the Code on Banking for Millennials


A new study focuses on the financial behavior and preferences of millennials just as they reach key life milestones. Among the insights: A growing disinterest in home ownership, stubborn dissatisfaction with digital banking experiences, and a surprising nonchalance about the arrival of AI.


Executive Summary

Millennials, now aged 28-44, present an outsized market opportunity for regional and community financial institutions. Despite facing economic challenges, millennials are now at the life stage when they are more likely to add financial products and providers than other generations.


How can banks meet the specific needs of this sometimes-puzzling generation? In this new study co-produced with The Center for Generational Kinetics, Alkami says that the digital banking experience has emerged as the key to attracting and retaining millennial customers. Almost half — 46% — define their primary financial institution by their online or mobile banking provider.


Read more at The Financial Brand

Dreher Tomkies LLP
PROVIDING SERVICES TO THE
FINANCIAL SERVICES INDUSTRY NATIONWIDE

Homeowners, Renters, and All Income Groups Back Housing Reforms: PEW


Survey finds broad support across categories for changes that would encourage creation of more varied options


Households throughout the country, particularly those with the lowest incomes, are struggling with the high cost of housing because of decades of underbuilding, high construction costs, and the resulting shortage of homes for sale and for rent, all combined with inadequately funded housing assistance. A national survey released in late 2023 shows strong support for state and municipal policies to allow more homes of different types to be built to help bring down costs.


The survey highlights majority support—usually greater than 60%, and oftentimes much higher—among households with low, moderate, and high incomes, and among homeowners and renters, for most policies that would enable more building of diverse types of homes. These policies also are broadly popular among suburban, rural, and urban residents.


Read more at The Pew Charitable Trusts

MONEYTREND 2024

October 28-30
TAMPA, FL

Credit unions buying banks to get added scrutiny in FDIC reviews


A key US financial regulator is planning to take a closer look at credit unions snatching up community banks as those M&A deals reach a record high in 2024.


The Federal Deposit Insurance Corp., in bank merger guidelines issued Sept 17., said it may for the first time require credit unions to provide more information on proposed bank deals so the agency can assess whether they serve community needs.


Credit unions aren’t subject to the Community Reinvestment Act, a 1977 anti-redlining law that measures banks’ lending and investments in low- to moderate-income communities.


Read more at CUInsight.com

ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092

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