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SRM Perspectives on Key Industry Trends

What’s at Stake in Banking & Payments with Capital One’s Purchase of Discover?

Posted by Myron Schwarcz and Andrew Gordon on Mar 14, 2024 11:25:00 AM

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Plenty of ink has been spilled on Capital One’s bold move to acquire Discover Financial Services, with most of it revolving around combining two large credit card issuers and the odds of the deal securing regulatory approval.

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Topics: Interchange, Mergers, Credit Cards, Durbin, Debit Cards, Capital One, Debit Network, Discover

How to Gain an Edge Making 2024 Financial Targets

Posted by Paul Davis on Jan 16, 2024 11:15:00 AM

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Financial institution executives who found 2024’s budget cycle particularly vexing are in good company. The unrelenting pace of technology, regulatory, and economic change makes allocating resources and meeting financial goals especially challenging. Time will tell if this is simply the “new normal,” but most internal processes have yet to adapt to these new demands.

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Topics: Digital Banking, Vendor Contract Negotiation, AI, Artificial Intelligence, Bank Vendor Management, Credit Union Vendor Management, Interchange, Regulation, Debit Cards

The Future of Credit Cards Under Threat

Posted by Keith Ash on Jun 9, 2023 11:01:00 AM

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Sens. Dick Durbin (D-Ill.)t, Peter Welch (D-Vt.), Roger Marshall (R-Kan.), and J.D. Vance (R-Ohio) have re-introduced the bipartisan Credit Card Competition Act of 2023 (CCCA). Companion legislation was introduced in the House by Reps. by Lance Gooden (R-Texas) and Zoe Lofgren (D-Calif.).

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Topics: Visa, Interchange, credit card competition act, Durbin, Mastercard, Issuers

Reflecting on Key Challenges & Opportunities in 2022

Posted by Paul Davis on Dec 27, 2022 12:10:35 PM

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Over the past year, SRM's experts have shared dozens of blogs, providing insight into industry-relevant topics.

We've covered a wide range of themes, including fintech trends, crypto, lending and deposit strategies, critical regulatory headwinds, and ESG programs.

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Topics: Fintech, Vendor Contract Negotiation, Interchange, Buy Now Pay Later, Digital Assets, Overdraft, credit card competition act

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

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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.

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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

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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.

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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

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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.

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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

 

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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

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