Credit unions that have been content to sit back and make up for declining debit swipe fees with greater volume should more closely manage their debit program or expect a 1%-3% decline in payments income in 2018, insists one analyst.
Tony DeSanctis, senior director at Cornerstone Advisors, said that with debit usage rising—therefore keeping revenue stable—many credit unions have neglected tuning up their debit programs so they perform at a higher level.
“A rising tide lifts all boats, said DeSanctis. “Transaction volume is growing, so everything seems to be going well. Spend volume has been strong. So all that has made it a little easier to look at that 3% year-over-year debit card growth in volume and smile and be happy. But if you are not paying attention to the fact the debit market is growing by 7%, you are not realizing that you are actually behind the curve. These issuers are looking at absolute performance instead of relative performance—not understanding what the real expectations should be for their program.”
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