Technology Has Driven Many of Today’s Interchange Revenue Challenges, but Technology Will Be the Solution for Forward-Thinking Banks and Credit Unions
Today, it’s challenging for most banks and credit unions to generate previous levels of revenue – much less meaningful increases – based on industry-wide headwinds that are significantly impacting interchange, interest, and non-interest income. The new and fierce competitive landscape is a fundamental contributor to these revenue challenges. Fintechs and big techs have been extremely successful developing solutions that disenfranchise banks and credit unions. Digital reinvention has also expanded a financial institution’s competition well beyond comfortable, physical markets. And banking-as-a-service (BaaS) further threatens traditional banking since it will enable virtually any company in any industry to embed financial services into its customer experience.
 
Banks and credit unions must strategically plan for the near- and long-term impact of these revenue challenges in the new highly competitive, digital-driven environment.