Payment Industry Insider

I was talking with a client yesterday and he was lamenting that the spread between income (interest on earning assets) and outgo (cost of funds) just wasn’t cutting it. It wasn’t enough to cover the cost of operations, let alone capital contributions. What the heck are we supposed to do to cover the shortfall?

Other income, I told him.

You mean like, just raise charges on overdrafts and stuff like that?

Yes, if it’s appropriate. But, actually I’m referring to "other" sources of income. Your members are getting all kinds of "stuff" from your competitors all the time. Why not from you?

You’re going to have to get out of the mindset that traditional products and services are all you are going to offer. Or, you may not be around to serve your members at all.