We All Know.
Consumers are looking for more from their banks, credit unions and non-banks. Concurrently, financial institutions are looking for additional ways to generate non-interest fee revenue.
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Wouldn’t it be great if someone could solve these seemingly opposed desires with a single solution?
We Did It.
Credit Inventions has created a way to dramatically improve financial institutions' overall revenue associated with checking accounts (aka “spending accounts”).
While debit cards are a significant source of non-interest revenue, Credit Inventions’ patent pending proprietary technology solution shifts spending that currently flows over debit networks to the higher interchange of credit networks.
The Numbers.
Regulated financial institutions currently earn 63 basis points on an average debit transaction amount of $38 ($.21 +.05% + $.01).
With the Credit Inventions solution the same transaction on average would earn the financial institution 178 basis points, a 115 basis point increase.
Financial institutions can offer rewards to the customer, or allocate the increased revenue as best suits their goals.
The Credit Inventions Solution.
Credit Inventions’ solution allows card issuing financial institutions to convert depository account spending from debit to credit transactions, increasing interchange income from 63 basis points to 178.
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The Credit Inventions solution incurs minimal credit risk to the card issuing FI and complies with all government regulations.
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The consumer’s spending activity becomes reportable to the credit bureaus, helping to build and improve credit scores.
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The 115 basis point increase in revenue can be shared with consumers to provide rewards or split with customers to both provide rewards and improve profitability.
Benefits For All.
For Financial Institutions
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The Credit Inventions solution provides minimal risk to issuing financial institutions.
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The Credit Inventions solution deepens and strengthens the customer/member relationship with the FI.
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The Credit Inventions solution helps attract new customers/members.
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Did we mention the 115 basis point increase?
For Customer/Credit Union Members
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Customers/CU members have the option on a per transaction basis to direct the transaction to flow over the debit or credit network rails.
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Customers/CU members receive all of the benefits of using a credit card without the associated risks of getting into a credit trap.
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Banks and credit unions are in the best position to help their customers/members improve their financial lives. Credit Inventions can help make it profitable