2013 Research Theme

Every year our Team picks a major theme around which our research efforts will center. In 2011, we focused on Sustainable Growth, looking at the relationship between earnings, capital and asset growth. 2012’s focus was Strategic Inflection Points, showing how fast an industry can change in the digital world. In fact, one particular slide showing the convergence and competition we saw in financial services generated a lot of discussion and will become our theme for 2013: “The Battle for the American Consumer”.

We've seen a number of new competitors enter the market to provide financial services to the American consumer. Traditional financial institutions, like credit unions, are competing head-on with retailers, mobile network operators, card issuers, and web-based platforms. This process of convergence around the four basic components of financial services (i.e. savings, lending, investments and insurance) has intensified as new technological advancements have changed the way financial services are delivered to the consumer. The battle is most intense in the area of payments. Checking accounts have historically been a key factor in identifying a consumers’ primary financial institution (PFI) but major shifts are underway in how consumers are paying for goods and services, challenging this conventional definition.

Much of our market research this year will explore “The Battle for the American Consumer” and discuss the strategic impacts to cooperative financial services.