Pub. 7 2016 Issue 1

www.wvbankers.org 24 West Virginia Banker W ith 2016 in full swing, bankers are working through their lists of strategic items to accomplish this year. In fact, more than 100 of your peers from across the country recently shared their strategies with us in our annual Banking Priorities survey, which each year helps uncover banking executives’ plans for technol- ogy and investments. So it’s fitting that we pause to reflect on the ways in which technology has evolved recently, as well as what’s in store for bank technology in 2016—and how, according to our survey, your fellow bankers will leverage it. It’s an exciting time in the world of fintech. Technologies and strate- gies that we’ve explored for years—EMV, mobile payments, branch transformation and an omnichannel delivery strategy—are no longer just concepts. With that in mind, here are a few fintech predictions and trends to watch in 2016: EMV Enters the Mainstream October’s liability shift has set the EMV wheels in motion. Banks are issuing EMV chip-enabled debit cards, and merchants are enabling more terminals. In 2016, banks will be gradually replacing magnetic stripe-only cards with chip cards, while merchants will be plodding through the more than 10 million point-of-sale terminals that must be qualified to accept chip cards. The result will be a win-win, as POS fraud is down by up to 80 percent in other countries that have rolled out EMV. However, POS EMV is not a panacea, and bankers must be aware that fraud is likely to shift to card-not-present fraud, or online payments. What your peers said: EMV’s payment methodology will finally enter the U.S. mainstream in 2016, and more than 60% of Banking Priorities respondents are planning to increase spending on EMV implementation this year. Further, 58.2% named it their top strategic focus for 2016. Branch Transformation Gains Steam Banks now have strong technology options that can enhance branch operations. For instance, secure wireless networks and tablet access to the core are providing a modern, high-tech customer experience in- side the branch. Banks can now offer a self-service model that enables customers to perform numerous banking functions without employee involvement. But the key to branch transformation, beyond integrated technology itself, is developing employees into “universal bankers” who can assist What’s Ahead for Bank Technology in 2016— and How Will Your Peers Use it? By Steve DuPerrieu, CSI