Technology has so far delivered disappointing results. But analytics could help solve the attrition problem and more.
Although the Durbin rules will hammer debit card profitability, bankers should keep the big picture in mind: debit is still better than many alternatives.
Economic pressures and government regulation have accelerated the use of debit over credit cards during the last two years, according to a BAI Research/Hitachi Consulting study.
With consumer loan demand anemic, banks need to focus on deeper relationships, says consultant Bill Handel.
While the popularity of general-purpose reloadable prepaid cards is growing at a fast clip, banks need to weigh the pros and cons of offering them.