Discover Which Cardholders Generate the Most Interchange Income

Article contributor / Brooke Jacobson, Data Analyst

Non-interest income is an important piece of financial institutions’ income and interchange is the largest contributor. The SHAZAM^® Business Intelligence Services™ product helps financial institutions evaluate their gross interchange income by BIN program, individual BIN and individual PAN to identify which programs or individual cardholders generate the most interchange income each month.

Financial institution data updates monthly and highlights the contribution of each segment of cardholders to the institution’s monthly non-interest income through the interchange earned in each BIN program, average gross interchange per cardholder in each segment, and monthly gross interchange earned by PAN.

SHAZAM’s product allows financial institutions to use this information to identify segments of cardholders to target based upon the interchange income they generate.

Financial institutions can align data insights with their goals and priorities. For example, if retention is a goal, institutions can focus attention on the list of top 10% of interchange-generating PANs to retain the most profitable debit cardholders. If increasing debit card usage is a priority, institutions can highlight the advantages of debit cards and fraud protections to cardholders in the bottom 10% list or target a group in the middle. Interchange information can also be segmented by BIN program to evaluate the impact of those programs on interchange income. Similar action can be taken with cardholders in specific BIN programs based upon institutional goals and resources.

Delivering targeted communications to appropriate segments of customers increases impact and improves success rate.

SHAZAM Business Intelligence Services is available now. To learn more or schedule a product demonstration, contact your regional director.