ICBA is calling on community bankers to
tell their members of CongressA community bank that wants to offer a competitive and dynamic credit card program may not have resources to do so. This is where TCM Bank comes in. TCM is a credit card only community bank that offers customizable credit card programs to community banks across the country. Our solutions provide our clients the ability to compete directly with national issuers while providing the high touch customer service community banks are known for.
What is the impact of the historically low interest rates for banks and how is TCM dealing with that? to stop the Consumer Financial Protection Bureau's overdraft rule.
The low interest rate environment compresses Net Interest Margin highlighting the need for a diverse product suite. Many payment products meet consumer needs and generate non-interest income. Utilization and spend can help offset the deficit created by the current low rate environment. Banks and merchants have the ability to reduce friction and increase customer satisfaction by supporting Account on File transactions (card stored at a merchant).
Background: Merchants offer the ability to authorize recurring payments at a set frequency and dollar amount. This allows a consumer or end user to set up a payment once and future payments will automatically take place without further intervention. One of our goals at TCM is to highlight the benefits of Account on File transactions as part of our overall business strategy.
What are your outlooks for the banking and payments industry?
ICBA Support:My outlook is continued ideation and innovation. Meeting customer expectations in new and exciting ways. We are in a digital first world – convenient, fast, and frictionless. Community banks also have the ability to use deep customer insight to proactively provide timely and prescriptive solutions.
In recent letters of support toScottWhen life in general normalizes, our industry will have a great opportunity to leverage lessons learned and respond to pent up demand. The year 2020 accelerated the addition of digital solutions and improved market agility, which will serve us well going forward. I believe we will see a strong economic recovery and I am optimistic for the future of the banking industry.
and Hill, ICBA and other groups said:
For more information, visit:- https://www.icba.org/tcm-bank/home
Overdraft protection services provide a needed form of short-term liquidity for millions of consumers.
Overdraft fees are not “junk fees,” as the CFPB claimed.
The rule goes well beyond the CFPB's statutory authority and reverses 55 years of consistent interpretation of the Truth in Lending Act and Regulation Z.
Advocacy: Community bankers can use ICBA’s Be Heard Grassroots Action Center to urge their members of Congress to support the resolutions.