PRI Blog: Debit Card Profitability

Our blog is dedicated to sharing our thoughts and expertise about the banking industry and how you can experience quantifiable results for your financial institution. We invite you to hear the perspectives from our banking professionals through our posts.

How Financial Institutions Maximize Revenue from Interchange Income

Currently Financial Institutions are experiencing increasing pressure on non-interest income. Forward-looking FIs are investing in maximizing their debit card interchange income to push back against these pressures and promote institutional growth.  In PRI’s blog, Maximizing PIN Debit Card Interchange, we took a deep dive into the differences in PIN networks and how they affect a […]
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What is Interchange Income and How Do You Calculate It?

Mike Holt, PRI partner,discusses interchange income and how it’s calculated in this week’s blog. What is interchange income? Simply put, interchange is the small percentage of each credit card and debit card purchase amount that is paid to financial institutions by merchants for the privilege and convenience of accepting payments via the FI-issued cards. Interchange income […]
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Partnering with Experts Improves Performance

As we discussed in our last blog, How Every Bank Can Benefit from Hiring a Consultant, financial institutions are uniquely positioned to serve their customers and often benefit from a fresh perspective and the best-practice experiences across the banking industry that a banking consultant brings to the table. In this blog, Bill Zumvorde, PRI Director […]
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How Every Bank Can Benefit from Hiring a Consultant

Financial institutions, while uniquely positioned to serve their customers, share many issues and challenges in common. The ability to bring an objective outside banking consultant to the table offers valuable insight and benefits that the FI may not have considered before. These include best-practice experiences across the banking industry that can be leveraged by the […]
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Optimizing Debit Card Profitability During M&A

In the rapidly shrinking banking industry, financial institution CEOs often ask what they should be looking out for to maintain or improve profitability during a merger or acquisition. PRI knows acquiring banks should keep an open mind when evaluating the acquisition target’s debit card profitability and learn what is working well for them, and why. […]
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Utilization is Critical to Improving Debit Card Portfolio Performance

The income potential of improving debit card portfolio performance – commonly referred to by insiders as PAU (Penetration, Activation, Utilization) – should place it at the forefront of most FI retail initiatives in 2021. In the last of this three-part series, PRI Partner Mike Holt examines best practices for growing a card portfolio through utilization. […]
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Improving Debit Card Activation Boosts Profitability

In last month’s blog, PRI’s Mike Holt, discussed how increasing debit card penetration into accounts improves FI profitability. Now we will take a closer look at the second element of an FI’s PAU – debit card activation. Activation is measured as the percentage of open debit cards with at least one point-of-sale (POS) purchase over […]
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The Retail Initiative for 2021: Improving Debit Card Portfolio Performance

The income potential of improving debit card portfolio performance – commonly referred to by insiders as PAU (Penetration, Activation, Utilization) – should place it at the forefront of most FI retail initiatives in 2021. In this three-part series, PRI leaders take a closer look at the best practices for growing a card portfolio, beginning with […]
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In Banking, the More Things Change, the More They Stay the Same

After 45+ years in the banking industry, Tim Holt, founder of Profit Resources Inc., has seen many transformational changes. Yet, remarkably, the foundations of community banking have remained unchanged. He recently reflected on a perception issue of one of these ever-important foundations – customer payments and how community bankers view debit cards versus checks. Risks […]
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