16 Jun How Your Bank Can Turn Digital Solutions into Revenue
Since 2008, the banking industry hasn’t just rebounded; it’s experienced massive growth. Even with the economy stymied by COVID-19, global banking revenue is expected to reach $5.4 trillion by 2022—a 75% increase since 2011. For banking executives, now’s the time to make sure you’re positioning your bank to optimize growth and drive revenue. But increasingly, growth is occurring on digital channels.
Here’s how your bank can turn digital solutions into revenue:
Digitize the Customer Journey
In an age where customers can order groceries from Target and have them delivered that same day, convenience and ease-of-use are becoming paramount across every industry. As the retail sector creates an increasingly frictionless experience, consumers will expect a similar breed of customer journey everywhere they do business. If onboarding with your bank takes days or even weeks, customers are apt to think your institution is just behind the times. So, what does the digitized customer journey look like?
First and foremost, it is personalized. For example, Vish Jain, 1st EVP and Head of New Business and Operating Models at Siam Commercial Bank, stated that their organization has fully digitized five different phases of the customer journey—prospecting, advice and sales, onboarding, transactions, and administration. These changes have allowed them to shorten their onboarding process, which once took days, to only three minutes.
Digitization puts the customer at the center of everything you do, and it transforms solutions in a way that saves time and money for both your bank and your customers. The proof is in the numbers. According to Boston Consulting Group, one of their bank clients was able to reduce overall costs by 30% when they digitized their credit lending journey, and another saved $200 million over four years.
Increase Transaction Revenue
The debit card market is highly saturated. 90% of Americans have at least one checking account, and 80% of those accounts have debit cards. If your bank can win a fair portion of debit card market share, interchange generated by these transactions can be quite lucrative. In 2016, interchange fees totaled $88 billion. Debit cards can also generate a significant amount of non-interest income in the form of monthly maintenance fees, ATM out-of-network-fees, etc. But, don’t count your chickens before they hatch! Before you can increase transaction revenue, you’ll need to entice customers to utilize your bank’s debit card program. To do this, prioritize service. Provide a frictionless experience for your customers in the form of strong digital account management to encourage debit card usage.
Finally, increase revenue generated by both debit AND credit transactions by reviewing your merchant services program. If your bank partners with a processing provider to offer these services, revisit your revenue share agreement to ensure you’re receiving your fair share. For more on how to secure a profitable revenue share, read The Difference Between Buy Rate and Revenue Share.
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Inform Sales Efforts with Data Mining
Data mining is an incredibly useful tool to grow revenue because it allows your bank to leverage a resource you already have—existing customers. Your bank can use data mining to identify opportunities to cross-sell, ask for referrals, reduce costs, and deepen relationships. Using data mining to customize bundle pricing for existing customers, some banks have been able to increase revenue almost 15%.
Looking for an easy way to get started with data mining? Ask your payment processing partner about an ACH mining report. This report pulls deposit data for all your accounts and cross-references it with a comprehensive list of processors in the industry. Your processing partner should work with you to compile this report to determine which bank customers are actively processing with another provider. From there, you can sort the list by profitability, targeting the highest value prospects first.
Final Thoughts
Now more than ever, customers are looking for banking options that are safe and convenient. And 39% of banking executives reported a reduction in overhead with expanding technology. That’s why embracing digital solutions is a win-win situation. Going digital enhances the customer experience while growing your bank’s revenue.
Ready to start growing your bank’s income? BASYS provides generous revenue share programs and payment processing solutions tailored for the digital age. Click here to learn more about the benefits of our partnership program or complete the form below to request a consultation.
BASYS Processing as a business partner
If your processor isn’t delivering strategies to help grow your program and personal service to your customers, please call BASYS Processing at (800) 386-0711. Let’s talk about creating a business partnership that will help you meet and exceed your goals.
BASYS Processing features:
• A friendly, live voice will answer the phone when you or your customers call; no automated phone systems.
• In-house PCI Compliance team to walk your customers through the process step-by-step, improving security and reducing costs.
• A knowledgeable Account Manager assigned to your bank to support your needs.
• Thorough Market Analysis followed by mutual plans and goals to grow your portfolio.
• In-depth initial training and ongoing bootcamp training for bank staff.
• A full suite of turnkey marketing assets that can be customized with your bank branding.
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, plus solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe and affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personal Payment Processing.
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