D:
Legitimate concern.
"Globally, institutions issue 40% to 50% of all bills," said Richard J. Bell, senior analyst at Tower Group. Banks, he said, issue monthly bills for credit card, mortgage, and car loans, and "some portion of the payments that banks receive will be payable to them."
With the proper software, banks can process these "on-us" payments. They can then route more difficult payments, such as those intended for noncustomers, to outside providers.
Translation:
A number of high volume customers, by "paying themselves" strip these payments out of the system, and CKFR gets left with higher cost, lower volume jobs, including the dreaded "exceptions" which send costs through the roof.
As I've said before, in the bank arena, in house processing will not go away. We need to answer the "some portion" questions NOW because they directly impact market growth. What fraction of the payment stream do FIs account for? How many can realistically do it themselves? What made a flagship customer like Countrywide decide to go w/CKFR instead of doing it in house?
Charlie
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