What’s on the horizon for credit unions, lenders, and other financial institutions in 2022? Our experts weigh in with a product outlook for payments in the coming year.
2022 Payments Outlook
The demand for payment services will continue to grow in 2022 and into 2023, based on the longer-term trend toward greater consumer acceptance of and demand for electronic payments.
Tightening Labor Markets
Hiring and retaining employees will become increasingly challenged in 2022. This will likely result in continued upward pressure on wages, putting sizable strains on staffing costs in collections and customer service operations.
Financial institutions will want to consider investing in more robust self-service payment solutions that can be easily deployed to deflect calls and reduce strain on your customer service personnel. By simplifying the ability to perform loan payments, originate transfers for new account funding, or move funds into existing accounts, borrowers will be able to transact business with your institution without consuming valuable call center minutes.
Lenders can help their borrowers make prompt payments and keep them from falling into arrears by sending text-message payment reminders and informing your borrowers about these self-service solutions.
With interest margins likely to remain tight in 2022, financial institutions should continue looking for non-interest income opportunities to maintain margins. For example, when permissible, adjusting your institution’s convenience fee strategy for payments channels could potentially stimulate an additional source of revenue that also positively. influences your borrowers’ ability to utilize self-service channels.
Note: Review all applicable state and federal laws and contractual verbiage to confirm charging such fees is permitted at your institution.