FIS Insights

FIS produces a variety of primary research and thought leadership to help you prepare for change and compete more effectively in the fast-evolving financial services marketplace. Articles from our latest Strategic Insights Newsletter are posted below with links to the full stories and you can access publications and resources in our Insights Library on the right to gain early knowledge of the consumer behaviors, management practices and market trends that impact your business. FIS is committed to continued research in our field so be sure to check back often for new content.

Read the individual articles below or download the full newsletter here.
 

Marketing Efficiency Matters (Mar. 2012)
By Fred Brothers, EVP,  Strategic Innovation

Given a host of recent industry headwinds, financial institutions have had limited ways to drive revenue to improve their efficiency ratios. But that’s starting to change as the U.S. economy’s slow climb from recession seems to be accelerating. For this month’s article I decided to look at the relationship between bank advertising & marketing spend and revenue generation, especially focusing on the productivity of marketing dollars during tough economic times.

The bottom line is that during 2009 – 2010, only one in six banks realized a significant upside to higher-than-average levels of marketing spending. The legacy of “marketing to the masses” produces waste in marketing dollars, which is hard to hide during downturns. Financial institutions will need to employ analytics to improve targeting and, in turn, marketing efficiency. Read more  

Calming the EMV Stormg (Mar. 2012)
Interview with Bastian Knoppers, SVP, Card Personalization

For a number of reasons, ranging from growing need for EMV to lay the groundwork for secure mobile payment to growing concern about more fraudsters taking up residence in the U.S., EMV deployment is on the horizon. Recent announcements from Visa® and MasterCard® have roiled the waters around EMV, but as Bastian Knoppers, senior vice president of Card Personalization at FIS, points out, these announcements are incentives, not mandates, to move toward EMV adoption. The following provides a realistic view of what we can expect short- and long-term and how financial institutions should prepare for EMV. Read more 

Dissecting the Credit Union Member Base (Mar. 2012)
By Paul McAdam, SVP, Research and Thought Leadership

The credit union industry benefits from a member base that is demographically broad and very similar to the typical U.S. resident in terms of age, employment status and education. Relative to community banks, the credit union member base is younger and has higher income and future earning potential.  Despite these advantages, credit unions capture lower retail deposit and loan balances from their members than community banks capture from their customers. But long-term, as credit unions expand their product offerings, they are well-positioned to gain share due to high levels of member loyalty. Read more 

Attracting and Retaining Gen Y and Gen X (Mar. 2012)
By Mandy Putnam, Director, Thought Leadership

Generations often hold common values shaped by shared experiences during their key developmental years. The collective discontent with the status quo among youth – spawned by the Great Recession and manifested in movements such Occupy Wall Street, Occupy spinoffs and Bank Transfer Day – could change how and where up-and-coming generations handle their finances.

Loyalty is one such value. The least loyal generations are Gen Y and Gen X – the latter of which is entering peak spending years and is a prime target for loans. Given younger generations’ current low levels of loyalty and discontent with the status quo, traditional financial institutions will be challenged to attract and retain these customers. Read more