Tony DeSanctis: Hey folks Tony DeSanctis and Brandi Gregory from Cornerstone Advisors here from the payments practice wanted to talk a little bit about some of the things we’re looking at for 2018 for payments so, Brandi?
Brandi Gregory: Yeah big news here guys we’re gonna see 3% interchange compression next year not a whole lot you can do about it right we’re gonna see a lot of transactions move from signature to PIN as well as just compression on the rate only way to overcome that new DDA’s card activation and get those transaction volumes up if you want to start to succeed or keep
succeeding in your portfolio.
Tony: Gotta encourage that spend and get those cards in people’s wallets and get them using them and on the credit card side you have similar challenges in terms of driving spend and the way you market the credit card is so critical to getting that top of wallet treatment and the way to do that is with data.
Brandi: Data!
Tony: It’s all about the data they need the information about your customers you have a unique position relative to the big guys in terms of what your customers do how they interact and making sure you take advantage of that to give relevant offers to those customers and be data-driven in your marketing efforts you can’t afford big media and big television so you have to use that data and use it smartly.
Brandi: Right Tony, we’d be remiss if we didn’t talk about fraud right fraud was the big big guy in 2016-2017.
Tony: Absolutely absolutely, the good news I think is that the trend in 17 was down I think we’re continuing to see pressure on fraud as we move forward things are migrating, so EMV chip rollout and things like that reduced a lot of that card-present fraud but card-not-present is becoming a much bigger issue; account takeover, synthetic IDs all those things are out there and again back to the data question I thought it’s important you got to be smart about how you manage that fraud and managing it aggressively how do I do that Brandi?
Brandi: You know you guys have some really smart people in your organization that are really passionate about payments what’s going to be so important to maintain and control that 20 percent non-interest income is give them a seat at the table, they need to actively participate in all discussions, it’s not you know banking of old its banking of new and payments is where it’s at, they gotta sit there.
Tony: It’s not self-directed anymore it’s not Ron Popeil set it and forget it you have to manage it aggressively and actively, whether it’s the data or the growth of the marketing you’ve got to manage it.
Brandi: That’s right alright thanks let’s do this in 2018.