JACKSONVILLE, Fla.-Looking to bolster that bottom line in 2010?
Anthony Jabbour, EVP- core and ePayments for Fidelity National Information Services (FIS), said payment systems are the best way for the credit union to manage revenue streams. "Credit unions make money three key ways," Jabbour said. "The first is managing margin, but that's volatile and market driven. There is fee income, but we see that coming under pressure on the credit card and overdraft protection sides. But payment is what the credit union can control the most. So they need to have part of their 2010 strategy focused on leveraging profits from payment channels across the credit union."
Jabbour cited a number of other areas credit unions should be considering as they plan for next year:
Loan loss: "Use business intelligence to get a 360-degree view of the member and look to outsource collections. Use those who are experts at it, versus trying to become an expert."
Business services: "If credit unions have this on their lists, they should make sure remote check capture and Internet cash management services are on the list, as well."
Mobile banking: "Here you have to have a triple play-offer text messaging, a downloadable application, or a browser app for the phone," he offered. "There are different market segments to go after and you will need flexibility."
Prepaid cards: "On cash advances, give members a prepaid card instead of cash," he suggested. "Every time members use the card they generate interchange revenue for the credit union, and if you brand the card, you have your name in front of members every time they use it."
Health savings account: "Under the Obama administration there will be a focus on healthcare, which will likely make health savings accounts more attractive and a product to keep on the radar."
Outsourcing: "Capital purchases will continue to be scrutinized, so outsourcing will gain a lot of traction."
For info: www.fidelityinfoservices.com
