Last week we discussed how tactics for improving revenue streams have changed in recent years for financial institutions. Before we dive into today’s subject, let’s briefly go over the key points from that blog:
The changing economy has forced financial institutions to look for different ways to boost returns, such as:
- Customer-based services
- New services, such as fee-based checking
- Realign branch staff
- Provide mobile banking options
- Look into more economical marketing practices
A great option is to outsource services to a knowledgeable third party
In today’s blog, we are going to take a more in-depth look at a couple of the top strategies for creating new revenue. Keep in mind that customer service and consumer-oriented services are always going to be your best bet, as long as they are implemented correctly.
Turn Existing Services Into Money-Makers
One of the smartest, simplest, ways for financial institutions to add revenue is to look at what existing services can be monetized. As our financial culture has changed in recent years, it is important to take a step back and look at what adjustments can be made in order to remain successful. When it comes to monetizing existing revenue streams, we need to be careful to only do so in a manner that will benefit the consumer.
One example of this is the “Free to Fee” trend. Fee-based checking is an excellent - and quick - way to turn an existing service into a money maker. In order to do this, you need to make sure that you are offering the customer something of value with their transformed checking account. Some of the most successful ways to do this is by providing consumers with access to their credit score as well as advanced fraud protection and mobile alerts.
Another way to create new revenue streams in today’s society is by focusing on mobile services. According to a recent study, more than half of adults do at least some portion of their finances via their mobile device. Over the years, we have become increasingly reliant on smartphones, tablets, and other electronic devices, in all different aspects of our lives. These days, consumers are far more likely to pull up their bank account information on their phone than ever before. From transferring funds to checking balances to making a mortgage payment, consumer demand is high for a smart and accessible mobile option from banks and credit unions. While many financial institutions - especially smaller, local ones - stop short of investing in an intelligent mobile platform because of the potential cost, the benefits of taking the plunge speak volumes:
- Better chance of attracting Millennials
- More access for consumers, both new and old
- Creates a new revenue stream for financial institutions
As you can see, 'going mobile’ is not only an excellent way to attract tech-savvy consumers, but it is also a way to boost your revenue stream. This is especially true if you use a third party vendor to implement this service. By outsourcing this service and relying on an expert in the field to develop a mobile platform that consumers will benefit from, you will be providing your customers with an invaluable service. Whether they are looking to access their personal loans while on vacation or want to apply for mortgage or commercial loan, being able to do so via a smartphone is a huge bonus.To learn more about some of the best ways to create new revenue streams and how they are connected to customer satisfaction, please download our recent ebook, New Revenue Streams for Financial Institutions. And if you have anything to add on this subject, please feel free to use the comment section below.