Pub. 6 2017 Issue 2

March 2017 15 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s quoted a finding that 40 percent of falsely declined cardholders abandon their card and the losses a bank suffers from reduced future spending from dissatisfied cardholders outpaces fraud four to one. The chip card is slow and it is damaging the confidence and desire of customers to use the product. People will use whatever is easiest and both Apple Pay and Samsung Pay offer a faster and more convenient option. The question is, have community banks enabled their cards to work in that environment? Wetherington outlined how the growth rate in credit card usage has outpaced debit cards. He predicts this trend will continue through 2020. The sublimation of payments allows you to park a credit card within apps such as Uber and mobile wallets where payment is convenient and behind the scenes. Credit cards are preferred for this type of transaction because it’s easier and you don’t have to worry about being overdrawn. Generation Y is discovering credit cards and they love them. Wetherington stated that if a bank doesn’t currently offer a credit card they may want to reconsider that strategy. He noted that the fragmented payments ecosystem makes people pay for things using different functions. Wetherington argues that banks are positioned well to offer an integrated mobile wallet using NFC technology for security that allows instant person-to-person payments. For this reason, the banks that will survive in the future will partner with fin-tech companies rather than fear them. Well utilized technology integrated with the banking structure will drive innovation forward. Ron Galloway presented a thought provoking talk tilted, “The Age Invaders: The Impact of Changing Demographics on Bank Products and Technologies.” Noting that customers will be customers longer, Galloway stated that the aging population really isn’t afraid of technology. He believes that block chain, which is like a giant spreadsheet that changes every few minutes, will lend itself to broad use such as land and stock trades. Much of the presentation focused on the financial implications of living longer but he also touched on the innovation that will provide greater freedom for the substantial aging population. The 2018 Technology Conference and Showcase will be held in Wichita on February 12 – 13. Eric Cook begins his presentation titled, "2017 Bank Tech Trends". Scott Woborny, Varney & Associates CPA’s, visits with Johnnie Ferguson, First State Bank & Trust in Tonganoxie. Lee Weatherington, a crowd favorite, kept everyone’s attention with a talk about the challenges facing debit cards and a breakout session about the significance of customer service.