Independent Banker - June 2019 - 56

ADVERTORIAL SPOTLIGHT
Banker
Innovation
Guide
Prepaid's resurgence creates new
possibilities for community banks
CHALLENGE: Resource-constrained community banks looking to retain and attract customers need modern payment
products and solutions that are easy-to-implement and drive new customer and revenue growth.
SOLUTION: FIS off ers the industry's broadest portfolio of cost-eff ective prepaid products including custom solutions
and packaged programs with quicker time to market. Prepaid appeals to a variety of customers including consumers,
government, schools and businesses.
With the digital banking revolution
in full stride, many predicted the
demise of prepaid cards. However,
nothing could be further from reality
as the prepaid industry is diversifying
with higher-end issuers and banks
now pushing prepaid to customers
in response to consumer demand.
According to the Independent
Community Bankers of America
(ICBA), prepaid is valued at $896
billion and is predicted to reach $3.65
trillion by 2022.
No longer only viewed as a gateway
to financial inclusion for the
underserved or as a vehicle to keep
the lid on kids' spending, prepaid
now appeals to a broad spectrum
of consumers, government bodies,
schools and businesses.
FIS OFFERS PROVEN
EXPERIENCE, FINANCIAL
STABILITY, UNPARALLELED
SECURITY AND COMMITMENT,
INCLUDING COMPREHENSIVE
COMPLIANCE OF ALL PROGRAMS.
1. Consumers are increasingly turning
away from cash, and there's also a
trend toward cashless by banks and
merchants to reduce handling costs.
2. U.S. e-commerce volume will grow
at 14.3 percent annually, exceeding $1
trillion by 2023, according to Business
Insider Intelligence, and users will
require cards to navigate the online
retail experience.
What's behind the prepaid
resurgence?
In addition to meeting the unique
needs of millennials and Gen Xers as
well as small businesses, there are
three key factors that are accelerating
the growth of prepaid:
3.Prepaid as a service is growing in
popularity as companies outside of
the prepaid space are looking to off er
these cards, creating an opportunity
for issuers to white-label their
solutions.
Remain relevant and attract
new customers
The proliferation of prepaid products
and services is an opportunity
for community banks to provide
cashless services to customers.
Prepaid is often a preferred payment
mechanism and a popular way to
distribute funds. Prepaid is driving a
shift from checks, debit and credit,
and it will continue to challenge
or complement these traditional
approaches to banking and
payments.
New prepaid off erings help to attract
new customers, especially millennials
and Gen Xers who have turned
to prepaid as a frictionless way to
send, receive and spend funds, and
as a way of eliminating the hassle
of checks and cash. The debt-free
cards resonate with millennials and
Gen Xers, who are often labeled riskaverse
as younger generations have
become even more cautious about
avoiding overdraft fees, high interest
rates, debt and possible damage to
their credit.

Independent Banker - June 2019

Table of Contents for the Digital Edition of Independent Banker - June 2019