The Evolution in Non-Interest Income
Three seminal but seemingly unrelated events are suggestive of the pressures the financial services industry is likely to face in 2014. These pressures are changing the fundamental business models of financial institutions.
First is the decision by US District Judge Richard Leon to send back to the Fed for revision its cap on debit card interchange.
Facing Virtual Teller Realities
This may be old news to some, but branch teller metrics keep falling as consumers continue to embrace self-service channels. According to Financial Management Solutions, Inc.’s (FMSI) 2013 Teller Line Study, average monthly branch teller transaction volume has declined by 45.3 percent since 1992, while teller salaries and benefits have increased by 84.2 percent over that same time period.
What Do You Want in Your Credit Card Portfolio?
Although the credit card business has been challenged by high delinquencies and charge-offs in the aftermath of the 2008 economic and financial dislocation, the business remains rather resilient in terms of generating a return to credit card issuers.
Talkin’ ‘Bout My Generation
The financial health of our country’s aging population should concern every generation. According to Hebrew SeniorLife, an affiliate of Harvard Medical School, “some 78 million Baby Boomers in the U.S. will turn 65 at the rate of one every eight seconds for the next 16 years.” Currently, 31 percent of all Baby Boomers are retired, 19 percent will retire within the next five years, and 50 percent will not retire for more than five years.