Kickstart your strategy
From basic banking staple to strategic growth driver
TRANSFORMING DEBIT CARD PAYMENTS FOR A NEW GENERATION
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contents
Welcome to a new way to process debit cards
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A checklist for modern payments
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Evolve your working environment
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Engage with customers as they want you to
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Understand what’s at stake
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Mind the generation gap
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Make debit cards add up for your bank
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MAKE DEBIT CARDS ADD UP FOR YOUR BANK
Did you know?
Jonathan Silverman Director of insurance solutions, Microsoft
Insurers are recognizing the value of having access to unlimited compute capacity for risk modeling and . . . making substantial cost savings with infrastructure related to the risk modeling workload.
“The pandemic led to an increase of debit card payments worldwide, as contactless purchases gained appeal. In Germany… girocard payments jumped by nearly €1 billion over the course of 2020, an increase of 21.7% from 2019. In the Netherlands, debit card transactions accounted for 79% of all retail purchases in 2020, overtaking cash payments in all sectors for the first time. Debit card payment volumes jumped by upwards of 20% in the U.S. and the U.K. as well.”
Dr. Bernardo Bátiz Lazo, Professor of Fintech History and Global Trade, Northumbria University
What if debit could help you strategically drive growth?
For consumers around the world, debit cards have long been a mainstay of the banking and payments experience. But when they debuted in the 1970s, the concept of paying directly from your bank account was nothing short of revolutionary. Until the debit card, no payment method – other than cash – could show retailers in real time that customers truly had the funds to cover their transaction. In the 1990s, debit cards soared in popularity alongside the worldwide adoption of interconnected ATM networks. Then, as contactless payments became the norm, use of debit cards only continued to increase – even since the rise of mobile payment apps. So, it’s easy to take debit cards for granted and see them as just another mandatory banking service. But what if they could help you win over a new generation of customers?
Insurance companies are more aware than ever of the wealth of information at their disposal. Their ability to extract value from data using advanced analytics has become critical to competitive advantage.
For actuaries, the pressure is on to gain greater insights from big data and rapidly transform modeling results into business intelligence.
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1 ReThink Quarterly, How debit cards changed our lives, 2022
Rick Yuan Head of actuarial modeling and transformation, AIA Group
We needed to run a projection tens of thousands of times to come out with a range of possibilities. One solution was to purchase more hardware, but the obvious winner was move to the public cloud. The beauty is you can tap that capacity when you need it and switch it off when you’ve finished the calculation.
MIND THE GENERATION GAP
88%
It’s time for a modern debit strategy, in three clear steps…
As a modern bank, you face a difficult question when it comes to customers. Namely, how do you strike a balance between retaining your loyal older account holders and attracting a new generation? For continued growth, it’s increasingly critical that banks boost their appeal to a younger audience: not only Millennials, but also Generation Z. By 2030, Gen Z’s income is set to grow 400% to $33 trillion and will account for more than a quarter of global earnings. As the first digital natives, Gen Z account holders have high expectations of the banking experience. With the right approach to debit, you could exceed these standards, delight the next generation of customers and keep your current customers happy, too. Critically, Gen Zers are also infrequent users of credit. With many simply not qualifying for credit solutions, their typically low credit score can affect their ability to buy big-ticket purchases like a car. So, it’s increasingly important to be able to mine your debit data for insight on Gen Z behavior, preferences and creditworthiness. But disparate tools, disjointed data and unconnected interfaces can stand in your way – and make you even less relevant to your target market.
88% of bank managers believe they understand the needs of Gen Z account holders but 34% of Gen Z do not agree that traditional banks understand their needs.
46% of Gen Zers are stressed out all or most of the time, mostly about their long-term financial future and their day-to-day finances.
With so much costly, inflexible IT to manage, your on-site infrastructure could be holding you back.
46%
Source: IBM, How banks can cater to Gen Z customers, December 2022
Source: Deloitte, 2023 Gen Z and Millennial Survey, June 2023
Behind these big numbers lies a golden opportunity for banks.
2 GfK, A fresh look at Gen Z and Millennials, February 2023
UNDERSTAND WHAT’S AT STAKE
30%
43%
David Elliott Architecture manager for financial services, Amazon Web Services
For insurers, the question isn’t "if" (they will migrate existing applications to the cloud) – it’s how fast they can move and what are they going to move first?
Are you ready to join the highest flyers?
Deliver real-time data on debit activity and portfolio profitability.
As an insurance risk manager, where do you stand on the cloud?
You can’t do the best for your debit business without a clear, up-to-date view of the risks, rewards and opportunities it presents. And you can’t get that comprehensive visibility from multiple disconnected systems and spreadsheets. For informed decision making, risk management and compliance, you need ways to turn raw data into real intelligence – fast.
But beyond lockdown conditions, there are more reasons than ever to run your organization’s most powerful systems in the cloud.
In 2020, unprecedented global circumstances have shown us all the benefits of hosted IT for business continuity and remote working.
GET ACTIONABLE INSIGHTS FOR DEBIT CARD MANAGEMENT
Base decisions on facts and real-time intelligence.
Uncover and analyze previously inaccessible data.
Gain a consolidated view of customer and market data.
Chief risk officer Major insurance company
The accommodation of large data sets, highly demanding algorithms and the hardware for instant computational resources make the cloud ideal for large-scale data analysis.
ENGAGE WITH CUSTOMERS AS THEY WANT YOU TO
Elevate the customer experience with tools for managing individual debit needs.
Allow customers to control where, on what and how much a card is used.
Offer a seamless and fully configurable environment through an intuitive user interface.
Things are looking up. But there’s more than one kind of cloud service to consider.
Let’s be clear: younger generations want an integrated digital experience. So, to get all that lifetime value from Millennials and Gen Z, you can’t just stitch together disparate tools like chatbots and SMS. These need to work in harmony with other service channels as part of a well-connected whole. When customers can’t complete a process digitally from end to end, having to call a contact center is a major inconvenience. Who needs the aggravation when there could be seamless integration?
Managed cloud services give you the power and scalability of a sophisticated actuarial modeling and risk management platform, but reduce the challenges, costs and risks of provisioning infrastructure and managing the underlying IT.
Hand every aspect of complex modeling technology to an expert provider and you'll reep the benefits:
PROVIDE CUSTOMER SELF-SERVICE TOOLS
Add new features and functions easily and accelerate innovation with the latest capabilities.
EVOLVE YOUR WORKING ENVIRONMENT
Provide a single, comprehensive user interface for multiple activities: debit, ATM, fraud, reports, card processing and customer self-service.
Fragmented systems, spreadsheets and data don’t just stop you from getting actionable insights; they hinder your ability to solve customers’ problems. Solutions should be simple to deliver as proactively as possible. But when you run multiple systems, it can take too long to implement and activate new features. Then you’re left with a convoluted environment that frustrates employees and customers alike.
ADD VALUE WITH AN OPEN ECOSYSTEM
Get user-friendly tools that are easy and fast to onboard, train up on and master.
Add capabilities, not complexities with solutions for loyalty, rewards, fraud detection and dispute resolution, as well as mobile and digital APIs and data tools.
A CHECKLIST FOR MODERN DEBIT PAYMENTS
Make sure you’re ready to understand, evolve and engage with a payments platform that offers:
WHAT MAKES AN IDEAL DEBIT PAYMENTS PARTNER?
A hybrid cloud approach
Decide where your core sits most safely and functions best: in the mainframe or a private or public cloud.
Increase agility, the user experience and the transparency of your bank’s inner workings.
Open architecture
Improve your speed to market and easily switch capabilities on and off.
Componentized technology
Pay only for the functions you need, as and when you need them.
Pricing based on use
Integrate easily with new technologies and make your platforming a working developer sandbox.
API connectivity
Turn your debit strategy into action with a technology vendor that can help you:
Eliminate technical complexity and cost uncertainty
Deliver a single strategic solution
Reduce costs through automation
Drive digital transformation in the cloud
Continually improve functionality
Achieve the highest level of global compliance
Integrate best-of-breed third-party solutions
Meet your needs and keep you ahead of change
Get all the modern answers with FIS
Your modern debit strategy starts here. With FIS® Payments One Debit Suite, debit card management is all set for the next generation of account holders – and your latest wave of growth.
WELCOME TO A NEW WAY TO PROCESS DEBIT CARDS
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About FIS
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our more than 55,000 people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.
Insurance Risk Management without Compromise
