The recent “Brexit” decision by the British people to leave the European Union is having significant economic impact on the financial service industry. There is no doubt that this industry-in-flux will continue to morph and change throughout the impact of this decision. The industry will also continue to experience ongoing shifts in consumer demographics (Millennials), the safety and security of technology, and the influence of various disruptors working to change the landscape of financial services. Our June edition of Merkle’s Financial Services Industry News explores many of the issues facing the industry and provides insight from our expert strategy team into the evolving environment of financial services.
In addition to relevant information on the major financial service categories, this month’s newsletter provides valuable guidance in the Marketing Land article, Measuring Email Effectiveness in Retail Banking, by Jose Cebrian, Vice President of Digital Messaging at Merkle. We are dedicated to sharing the deep and practical knowledge of topics that are impacting the everyday lives of financial service marketers and we hope that you enjoy this edition of Merkle’s Financial Service Industry News.
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This month’s edition includes the following topics:
- Interest Rate Overnight Averages
- General Industry: Millennial Customers Will Flee if Their Bank Accounts Are Hacked
A recent survey by FICO reveals that it only takes one fraud incident — such as identity theft, lost or stolen information, ATM skimming, or a compromised account — for millennials to leave their bank.
- Technology & Innovation: Chase Survey: 48 Percent Prefer to Pay With Phones
According to a JPMorgan Chase survey of 1,500 adults, more people would be upset to lose their cellphone than their wedding band (32 percent versus 19 percent).
- Cards & Payments: Survey: Most Millennials Reject Credit Cards
A new Bankrate survey of 1,002 U.S. adults shows that only 33 percent of those between the ages of 18 and 29 have a credit card.
- Consumer Lending: Prosper Shuts Borrowers Off From Two Loan-Marketing Sites
The online lender Prosper Marketplace Inc. reportedly has put its relationships with LendingTree Inc. and Credit Karma Inc. on hold.
- Small Business: Visa Plans to Speed Up Chip-Card Certification Process
Visa Inc. announced on June 16 that it plans to speed up the process for certifying merchants’ chip-card equipment.
- Investments & Wealth Management: Women Are Under-Saved and Underprepared for Retirement
Men and women are on equal footing when it comes to 401(k) plan participation, but research from Aon Hewitt, the global talent, retirement, and health solutions business of Aon, shows that this equality doesn't hold true when evaluating overall retirement readiness.
- Insurance: Younger Consumers Would Like to Receive Life Insurance Benefits as Monthly Income
A new LIMRA study shows consumers under age 40 would prefer to receive life insurance benefits as a monthly income rather than a lump-sum payment.
- Regulation & Security: Wary Fed Rethinks Pace of Hikes
The Federal Reserve on June 15 announced that it would not raise its benchmark interest rate and that future increases are most likely to unfold at a slower pace.
- Economy: Americans' Total Wealth Hits Record, According to Federal Reserve Report
Freddie Mac reported on May 12 that the average 30-year fixed-rate mortgage fell to 3.57 percent — the lowest level since May 2013 — from 3.61 percent the previous week and 3.85 percent a year ago. The average 15-year fixed-rate mortgage dropped to 2.81 percent from 2.86 percent the previous week and 3.07 percent a year ago, while the five-year adjustable-rate mortgage slipped to 2.78 percent from 2.8 percent the previous week and 2.89 percent a year ago.
- Thought Leadership: Measuring Email Effectiveness in Retail Banking
As more consumers look to deal with their banks online, banks need to know the impact of email campaigns. Columnist Jose Cebrian of Merkle discusses some key tactics in Marketing Land, a digital marketing website.