Amazon has exploded around the world with over 300 million users. As the company continues to grow, more and more people are jumping on the two-day shipping bandwagon. While this may seem only to be an issue for brick and mortar stores selling goods, financial services may be the next target for the digital giant.
Amazon has been around since the early 90s and has continued to expand its products and services. What used to be known as the textbook site, is now a go-to for electronic, home improvement as well as services like Prime Video and Amazon Wardrobe.
Due to the company’s increasing size and impact on the retail industry, the term the Amazon Effect was coined. According to Forbes, the Amazon Effect relates to the way the digital marketplace has impacted traditional forms of commerce like brick and mortar retail. However, the Amazon Effect has crossed over into other industries other than retail, like banking.
Amazon offers a unique shopping experience because the company knows your purchase history, makes checkout easy and provides a wide variety of products and services. Consumers are beginning to expect the “Amazon” experience in other daily life activities, including banking.
Your credit union can compete with Amazon in this aspect by focusing on their member experience. Going above and beyond for your members and providing them with a consistent, pleasant experience every time they do business with you will help strengthen your member loyalty.
However, it is not just the experience Amazon provides to its customers financial institutions must worry about. The online giant is also beginning to offer their customers financial products. Over 100 million people have the Amazon Prime credit card. The e-tailer also gives users a debit card-like option with Amazon Cash. This allows users to make deposits into their account in amounts up to $500.
In addition to cards, Amazon launched an invitation-only lending program for businesses that sell products on their platform. These loans can range from $1,000 to $750,000, and the company has stated they have loaned out $3 billion since the founding of the program.
If you want your credit union to compete with online retail giants like Amazon, you need to focus on anticipating your member’s needs along with superior products and services. Consider surveying your members to identify any gaps in your product and service lines. After you evaluate your products and services, you may find that it is time to upgrade your security detection if fraud is a significant concern for your members. Or maybe they are looking for a more cohesive online banking experience. That is where Member Access Processing can help.
MAP offers risk management solutions using the latest in fraud detection technology that will help reduce the risk of fraud while providing your members the peace of mind they are looking for. We also offer a suite of digital payment solutions as well as a mobile app that gives your members the convenience of banking anywhere, at any time.
If you are interested in learning more about MAP’s fraud services, mobile banking or any other products, contact us today to learn more.