// Financial Institution Insights
How your organization can benefit by offering a merchant processing solution.
To offer or not to offer is NOT the question.
The strategic question asked most often by financial institutions is, “Should my organization provide a merchant processing solution?” This question is critical, although there are several things to consider before a decision is made:
· What is the commercial makeup of our customers?
· Would our customers benefit from a merchant processing solution?
· What is the cost-benefit analysis?
· Would there be reputational risk engaging with an outside partner?
· What are the opportunity costs?
Understanding the right questions to ask can be overwhelming. Let’s start with a basic one.
Why offer a merchant processing solution?
Think about this -- merchant processing providers have two times higher deposit balances and three times higher revenue than those who offer only a checking account program.1 In addition, global payments revenue is expected to reach 6% by 20192.These encouraging predictions provide insight into how a merchant processing solution can positively impact your bottom line. Emerging markets are adopting non-cash payments and mature markets are using new technology to drive non-cash payments. Financial institutions that do not offer a merchant processing solution may be missing out on a value-added, revenue-generating opportunity.
Merchant processing allows a financial institution to obtain and retain customers and be a foray into additional banking services. Selecting the right partner is a critical step to ensuring your customers’ needs are met. As a result, the benefits of higher balances and revenue can be achieved.
The next logical question to ask:
How can Elavon Financial Institution Solutions create a successful merchant processing solution for my organization?
Contact me today for more information!
1 Small Business Customers – Marketing View Cross-Sell Report from MAD
2 Global Payments 2015: A Healthy Industry Confronts Disruption