Not sure if you are a BAI Member?
Subscribing gives you free access to hundreds of articles and other benefits including BAI Banking Strategies daily email alerts. Already a BAI Member? Click here to log in and subscribe. Not sure if you are a BAI Member? Click here to find out. Otherwise, become a BAI Member below to subscribe.
Search BAI Banking Strategies open and subscriber-only content.
While bankers understand the importance of payments to their revenue, they often lack the most basic tool for quantifying that importance – a P&L statement.
Although the regulatory blow to debit interchange will be less than feared, banks still face the challenge of recasting their overall retail payments line of business.
Banks with less than $10 billion in assets will not be materially harmed by the Durbin Amendment – actually, they will receive significant competitive advantages vis-à-vis the larger banks.
John Beran, Comerica’s former chief information officer, sees future payments game changers in social networks, mobile banking and enterprise payments architecture.
Free checking and debit card incentives are here to stay regardless of what happens with the Durbin Amendment because both continue to make sense for banks.
Although the Durbin rules will hammer debit card profitability, bankers should keep the big picture in mind: debit is still better than many alternatives.