TALLAHASSEE, Fla.-Even small increases in transaction prices strengthen the bottom line.
"We spend a lot of time educating credit unions on how they make money in the point of sale and ATM arenas. It is sometimes pennies in additional income per transaction, but those pennies add up," concluded Jim Gowan.
The CU24 EVP and COO said it's all about influencing member behavior. "For example, I buy something at Walmart and walk over to the ATM and get money out. The credit union earns interchange income on my Walmart transaction, but they pay on the ATM. If we can educate members to not use the ATM and get cash back at point of sale, which is surcharge-free for them, it creates more income opportunities for the credit union and takes away an ATM transaction expense."
CU24 is looking to help credit unions improve the bottom line with new products and services that strengthen relationships and drive revenue. PIN-less bill pay is one. "This can help credit unions influence members to pay bills online, which drives interchange revenue and member convenience," Gowan said.
Gowan reminded that it's also important to conduct promotions that match local market conditions. He said that after a local bank closes or is sold, credit unions have been driving share of wallet with rewards programs. "Some of these programs may be offering some type of reward for opening a new account. Sometimes it's simply adding points to an existing rewards program."
