60 Minutes recently aired a segment on M-Pesa, an alternative currency, which is the preferred method for financial transactions in Kenya. In essence, M-Pesa allows cell phones to perform nearly all financial transactions without the use of a bank account or credit card. The full segment, which goes into more detail than this blog, is […]
Do the assumptions outlined in your ALM model’s assumption summary line up with what is actually being utilized to calculate the results? In performing model validations, we have seen numerous instances in which there were discrepancies between reported assumptions and what was used in the actual reporting. This situation creates unnecessary challenges and makes it […]
There are bites – small and LARGE – being taken out of credit unions’ non-interest income. Just consider: PINless PIN. Apple Pay – or the pay option du jour (e.g., Bitcoin, Samsung Pay, etc.). The increase in payments via ACH, including P2P. The decline in ODP. As these bites are being taken out of revenue, decisions […]
In this installment of our series on observations from model validations, we’ll focus in on the results from traditional income simulations, specifically static balance sheet simulations. We often see results that show low risk despite the credit union having a material amount of fixed-rate, long-term assets. Take the example below which shows the NII results […]
We all know there is tremendous uncertainty with respect to the payments battle. There are numerous players in this market. Just a few are shown below. It is not enough for credit unions to just add multiple payment options for members. If credit unions want to be able to generate revenue in this environment they […]
