Strategic Resource Management Sees Continued Card Portfolio Income Opportunities for Banks and Credit Unions
Following Record Fee Increases for Clients in 2013, SRM Sees Trend Continuing in 2014
MEMPHIS, Tenn., March 11, 2014 – Strategic Resource Management (SRM) projects a continued trend in 2014 of banks and credit unions obtaining greater cost savings and revenue-enhancement opportunities through debit and credit card portfolio assessments. The industry’s leading debit and credit card consulting company had a record year in 2013, in terms of benefits delivered to its bank and credit union clients. Negotiations have to-date helped clients cumulatively add more than $100 million to their bottom lines over the lives of their contracts.
SRM is an independent consulting firm that helps its clients reduce expenses, generate revenue and maximize profitability. An area of focus that has proven particularly valuable to its clients in terms of bottom-line improvement is its card services division. This division leads financial institutions in gaining additional revenue through review of ATM, Signature, PIN/POS processing and card branding on debit and credit card portfolios.
“While we look at many impact areas like core processing and internet banking, projects such as card portfolio assessments help us dig deeper into contract opportunities and productivity,” said Brad Downs, President of SRM. “The goal is to look at the entire relationship between a bank or credit union and its chosen providers with savings and revenue potential in mind.”
In debit and credit card transactions, many financial institutions only benefit from the interchange fees they collect from the merchant on each transaction. SRM is able to discover new possibilities for additional revenue by negotiating new and improved deals for ATM, Signature, PIN/POS processing and card branding.
Because SRM is an independent consulting firm, it doesn’t make a recommendation about which company to sign a contract with when presenting its findings. Instead, it impartially presents the market information, which may reveal more opportunities with the providers the institution has been using.
Banks and credit unions are a major focus of SRM’s business. Virtually any financial institution has unrealized potential from a revenue or expense perspective, so about 3,500 financial institutions around the U.S. fit the target for SRM in terms of size and business portfolio. A typical client for SRM is a bank with more than $1 billion in assets or a credit union with more than $300 million in assets. SRM serves institutions throughout the U.S and, on average, helps financial institutions gain $125,000 to $250,000 in unrealized immediate and potential savings and revenue opportunities for every $500 million in assets.
As Strategic Resource Management continues seeing bottom-line pressure in the financial institution industry, the dual impact areas of debit and credit card processing and branding will continue to be strong opportunities for SRM clients.
“If there is one thing our work on nearly 5,000 projects has shown us, it is that the pressures on businesses are ever-changing. So, the solutions in expense reduction and revenue generation must change as well,” added Robert Koehler, Senior Vice President at SRM. “The perspective and experience of a third party is often the best source for that new perspective.”
About Strategic Resource Management
Strategic Resource Management (SRM) has a mission to improve its clients’ bottom line. SRM is an independent consulting firm that helps reduce expenses, generate revenue and maximize profitability through examining processes and negotiating contracts. Drawing on its extensive experience, market insight and robust proprietary benchmarking database, the company helps organizations maximize profitability without sacrificing quality or valued vendor relationships. The primary industries SRM serves include financial services, manufacturing, municipal and health care. For more information, visit www.srmcorp.com.
Contact:
Elise Dillingham
Sullivan Branding
(901) 526-6220; (901) 827-2348
edillingham@sullivanbranding.com