Analysts from London-based RBR Research Ltd foresee a drop in the interchange rates by 15% in the next two to three years. This means it’s only a matter of time before we see reductions in interchange income – and this will impact every credit union large or small.

With our current market environment, IBM’s profit jumped 26% in its last reporting, as the tech giant benefited from improvements in its consulting and software businesses as well its international holdings.

So what does that mean to credit unions in general?

IBM made a strategic decision to expand in areas above and beyond their original offerings. The same could apply to credit unions. Technically speaking we cannot control interchange rates, and yes we could manage costs better – however there is one thing we can do for sure and that is we can control the way we do business.

It’s time we looked outside the box for different types of products and services, focusing more on non-interest income. It’s time we welcomed technology to help us efficiently and economically better manage our members. We have to collectively look at other options to grow our business and help our members.

I am interested to know what other strategic options you have considered. Have you calculated the overall reduction in your interchange income and what that means to your bottom line?