Jeff Russell to Credit Unions: Prepare for Change
October 4, 2012
October 5, 2012
Credit unions received important advice about payment systems from Jeff Russell, CEO of TMG Financial Services and senior advisor for The Members Group, addressing the Northwest Credit Union Association’s convention Thursday morning: prepare for change.
The future of payment systems is a game changer for all financial institutions, not just credit unions. And it is evolving rapidly. According to Russell, the days of offering a simple checking account to members are history. Because new players like social media companies are beginning to enter the market, all financial institutions must prepare to evolve or face serious problems.
“Consumers want options, which is what companies like Google, Dwolla and Paypal bring to the space,” Russell said. “Because a large percentage of earned income [comes] from exchange fees, which is declining, credit unions have got to be ready.”
Russell pointed out that he believes exchange fees—and even return on assets—will decline to a point that free checking will go the way of the dodo bird.
“It’s not a popular thing to say, but I believe it to be the truth,” he said.
Russell was the third keynote speaker at the 2012 Annual Business Meeting and Convention and the first on Thursday. His presentation was followed by a number of impact and education breakout sessions another general session in the afternoon.
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