Community banks and credit unions have felt the impact of the drastic changes that have occurred over the last decade. From increased regulatory oversight and the deluge of fintech companies to shrinking margins and institution consolidation, the options for driving revenue have continued to decrease. These market changes have made it more important than ever for community banks and credit unions to tap into new income sources, allowing them to thrive in the ever-changing landscape of community banking. As institutions seek out increased profitability, one of the places they can make great strides is by examining sources of non-interest income.
While growth in non-interest income often results in increasing fees on customers, there is an additional stream for driving non-interest income while increasing customer engagement and decreasing employee frustration. Reviewing your debit card program can be an eye opening experience that could potentially lead to great savings with the added benefit of less stress on your employees.
According to the 2016 Debit Issuer Study from PULSE® Network, debit remains a critical source of non-interest income, with smaller institutions generating approximately $111 per active consumer debit card per year in interchange revenue.*
Reviewing your debit portfolio with a knowledgeable payments expert can help you get a better understanding of how your legacy debit card program is impacting your non-interest income. Increased interchange income and the ability to decipher your debit bill are some of the benefits you may be able to uncover when conducting your analysis.
Diving into a review of your legacy debit card program might seem overwhelming, but it can also be a driver for increasing non-interest income, simplifying complex network fees and reducing employee frustration. Legacy debit programs often have bills that are up to 20 pages and are time consuming to review and virtually impossible to understand, taking up valuable working hours for operational staff. In addition, community banks and credit unions often don’t receive prioritization and are faced with limited support with legacy programs. After completing an analysis with a payments expert and "looking under the hood” of your legacy debit program, it’s possible to find significant fee savings of up to 15% or more.
Delve into the details of your legacy debit program and learn how you can increase your non-interest income by partnering with a debit company that’s here for you.