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SRM Perspectives on Key Industry Trends

Despite Crypto’s Correction, No Change to Fundamentals

Posted by Larry Pruss on Jul 8, 2021 10:00:00 AM

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Bitcoin has lost half of its value since reaching an all-time high mid-April. Although one might think this setback would cast a pall over a gathering of cryptocurrency enthusiasts, the overall tone of Coindesk’s Consensus conference in late May remained constructive and upbeat.

For those keeping their eyes on the prize, these two paths are not contradictory. Crypto’s long term value proposition hinges on its adoption as a means of exchange, not its volatile pricing as a speculative asset class. And there’s no sign of slowing down among large financial institutions and scrappy entrepreneurs creating trading and custody platforms and expanding payment capabilities for digital coins. These are the areas where banks and credit unions of all sizes need to take note.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Three Ways to Rebuild Financial Institution Operations in 2021

Posted by Jesse McGannon on May 25, 2021 9:02:00 AM

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Over the last year, chaotic disruptions have upended traditional operating models at financial institutions (FIs) worldwide, and many are only now stepping back from "fire drill" mode. As for the leaders of these institutions, their task is to now scale up and rebuild operating models - ones adapted to their current (and future) post-pandemic environment.

After a period of such intense disruption, here are three ways to check and double-check the blueprint when rebuilding an FI's business models.

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Topics: Bank Vendor Management, Credit Union Vendor Management, Banking Operations, Process Optimization

Hope for the Best, Plan for the Rest | Three Scenarios for Operational Excellence

Posted by Patrick Goodwin, President on Apr 25, 2021 9:00:00 AM

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With vaccinations ramping up and most businesses reopening this spring, it’s getting easier to envision a return to normalcy later in 2021. Even so, neither Main Street entrepreneurs nor bankers are quite ready to heave a sigh of relief.

As has been seen...and experienced, some need more assistance than others, and some have proven adaptable to new conditions, whatever comes next.

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Topics: Vendor Contract Negotiation, Operational Excellence, Bank Vendor Management, Credit Union Vendor Management, Bank Consulting, Credit Union Consulting, strategies for credit unions, Consulting For Banking Operations, Consulting For Credit Unions

Optimizing PIN Networks for New Forecasts | Planning for Post-Pandemic Consumer Payments

Posted by Bob Koehler on Mar 23, 2021 9:30:00 AM

 

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The winds have shifted since 2020 made game-changing waves in debit card usage on multiple fronts, including:

  • In-person versus online spending
  • Categories of merchants patronized
  • Contactless/mobile app adoption

Each of these factors carries implications for banks, credit unions, and other card issuers and their existing revenue models. Below are a few opportunities and recalibrations to consider for your next PIN network vendor negotiation.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management, Durbin Amendment, PIN Optimization, Interchange

The 2021 Outlook | A Return to Normal, Without Returning to the Past? Part 2

Posted by Ben Mrva on Feb 16, 2021 9:36:00 AM

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In a recent blog post, we elaborated on several trends that our payments experts expect will impact the banking industry in 2021 - including trends regarding digital banking investments and the branch’s evolving role with consumers.

Let’s continue that conversation by exploring additional factors directly related to the retail banking industry’s current environment, specifically:

  • The ongoing shifts in payments preferences
  • Battening down for the next economic wave
  • Changes in the regulatory climate

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Recalibrating for COVID-19 | Long-Term Planning in Short-Term Uncertainty

Posted by Larry Pruss on Feb 2, 2021 9:30:00 AM

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My colleague, Patrick Goodwin, recently wrote about the challenges of budgeting amid the uncertainty of a pandemic. Given the circumstances, it’s understandable some might be seeking a “hall pass,” to excuse themselves from long-range planning. Unfortunately, the hyper-competitive financial services marketplace doesn’t allow for such luxury.

Strategic planning is laced with uncertainty. Much of its value is derived from the team-based exercise of thinking through contingencies and gaming out some of the inevitable course corrections. In that sense, the effort may be more important than ever for the 2021-23 horizon.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

The 2021 Outlook | Will Banking Return to Normal, Without Returning to the Past?

Posted by Ben Mrva on Jan 25, 2021 9:00:00 AM

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Now that we’ve closed the book on 2020, we can count on a swift change to the financial services landscape, right? The answer is yes…and no.

With the ongoing vaccine distributions and a new administration in Washington, there’s even more reason to expect the new year to bring new behavior. On the other hand, conditions don’t turn on a dime simply because the calendar flipped to January.

With that in mind, SRM’s payments experts have identified several trends we expect to drive financial services dynamics in 2021. Although their full effect is unlikely to be visible early in the year, banks and credit unions must consider these trends in setting priorities for 2021 and beyond.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

PayPal’s Bitcoin Embrace - Should Banks Be Jealous?

Posted by Jesse McGannon on Jan 10, 2021 9:00:00 AM

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PayPal Holdings, Inc., recently announced enhancements that will
enable its users to buy, hold, and sell cryptocurrencies within its app, and to pay for purchases with these crypto assets, as well. Most of the attention has naturally focused on Bitcoin - the household name of cryptocurrencies – and, by far, the largest. Not surprisingly, the price of Bitcoin quickly surged past $16,000, thanks to the associated visibility and implied credibility.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Show Me the Budget | Five COVID-19 Savings and Revenue Strategies

Posted by Patrick Goodwin, President on Dec 20, 2020 9:00:00 AM

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The annual budget process is usually an exercise in planning for uncertainty. Add to that, it’s challenging, time consuming, and complicated. Then, when finalized, all you know for sure, is that it is at best a pro forma. That’s because financial institutions (along with everyone else) operate in an environment with multiple variables they do not control…and that has become even more evident in 2020.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Top-of-Wallet Status | Do Card Issuers Have a Hidden Advantage?

Posted by Bob Koehler on Aug 23, 2020 9:00:00 AM

Top-of-Wallet Status | Do Card Issuers Have a Hidden Advantage?

Top-of-wallet status is highly coveted because, once achieved, the incumbent – in this case the card issuer - has the advantage. Old habits die hard. Once a consumer develops a “go-to” card for certain types of purchases, they tend to repeat that pattern of behavior.

Those habits can be cultivated by offering benefits to the user via a rewards program. Sometimes the choice can be situational, with cardholders designating certain cards for specific types of purposes. This may extend to the type of card – e.g., debit or credit – and/or a workflow established by the merchant which makes it easier to use one card rather than another – e.g., Walgreens Express Pay.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

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