Welcome To
The Bottom Line

SRM Perspectives on Key Industry Trends

Durbin Bill Aims to Fundamentally Change the Credit Market, Causing Disaster for Industry

Posted by Myron Schwarcz and Keith Ash on Sep 7, 2022 11:16:00 AM

CCCA-Blog-Image[10]

Ever since the Durbin Amendment upended the debit card industry in 2010, insiders have speculated that Sen. Richard Durbin (D-Ill.) would eventually pursue similar changes to the credit card industry.

Sen. Durbin made it known during a May 2022 Senate Judiciary Committee meeting that credit card reform was in his crosshairs. As inflation rose, he found a bipartisan partner in Sen. Roger Marshal (R-Kan.) and introduced bill S.4674, the Credit Card Competition Action of 2022.

This bill reflects many principles Reg II applied to routing, intending to increase competition and reduce merchant costs. If this bill becomes law, it will have significant consequences for issuers and consumers, potentially completely upending credit access as we know it today. It could also lead some issuers to dial back rewards and benefits.

Read More

Topics: Durbin Amendment, Interchange, Fee Income, Credit Cards

Reflections on Our First 30 Years & the Evolution of Financial Services

Posted by Brad Downs on Aug 16, 2022 11:14:00 AM

30-Year-Anniversary-Blog-Image[5]

Sometimes it’s hard to believe 30 years have passed since our founder Curtis Downs took the concept of developing contract benchmarks and applying them to help banks, credit unions, and others achieve critical savings – the underlying value proposition behind SRM. That foundation has allowed our clients to add more than $5 billion to their bottom line over the years.

It's fascinating to look back three decades and see the rate of change that has taken place in the financial services industry. As we acknowledge our company’s 30th anniversary this year, I want to highlight some significant changes in financial services that have also challenged and motivated SRM to evolve.

Read More

Topics: Payments, Digital Banking, Vendor Contract, Interchange, Regulation

Merger Scrutiny, Overdraft Fees & More: Banking Regulation in 2022

Posted by Paul Davis on Feb 8, 2022 11:47:00 AM

Reg-Blog-Image-1

Financial institutions should brace for substantial regulatory change in the year ahead.

Turnover at the top of several federal agencies, including the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corp. (FDIC), foreshadows more scrutiny for FIs.

Everything seems to be on the table, including timelines for implementing the Current Expected Credit Loss (CECL) accounting standard, data privacy, and Bank Secrecy Act compliance.

There are, however, several areas that we believe merit the most attention in the coming months.

Read More

Topics: Vendor management, Cryptocurrency, Interchange, Regulations, Mergers & Acquisitions, Overdraft

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

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

 

PINOptimizationBlog

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.

Read More

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

Content not found

Subscribe to our blog

Recent Posts

Posts by Topic

see all