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Financial Reform Regulating Debit Card Interchange Fees

July 15, 2010

The provision in the new financial regulatory overhaul that regulates debit card and interchange fees has credit unions and banks in an uproar.  Some argue that regulating these fees will allow smaller businesses to compete with the “Walmarts” of the world.  While on the surface this Roin Hood mentality seems like a fantastic idea to the public, one must look at the under-belly of this beast.  Unfortunately, many smaller community banks and credit unions are taking a huge hit from this reform.  Many American’s depend on these financial institutions to provide them with the hometown service they are looking for. 

The timing could not be worse for these institutions who are coming off “The Great Recession.”   

NAFCU President/CEO Fred Becker said his group is “greatly disappointed that this far-reaching legislation contains provisions that will hamper credit unions’ ability to provide low-cost financial services to 92 million Americans. Credit unions have been widely recognized for not contributing to the financial crisis because of their prudent and consumer-friendly business practices. Yet this bill will punish credit unions with unnecessary new regulation and restrictions on their ability to offer free checking and debit card programs.” – From Claude Marx’s Senate Passes Regulatory Overhaul cutimes.com article

How will these smaller Financial Institution’s react to recover some of their losses?  One approach for them to take that will combat these costly reforms, is to implement banking business intelligence, which will  improve operational efficiencies.  For example, FMSI’s The Teller Management System™ provides bank managment with decision-support intelligence.  By scheduling tellers based on forecasted transaction volumes, The Teller Management System™ helps banks gain better control of labor costs while increasing service levels.

One Comment leave one →
  1. July 20, 2010 6:26 pm

    A very opinionated view of the financial reform bill. Click on the below link.

    Opinion on Financial Reform Bill

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