Learning from Retailers
Today, two of the most prominent forces impacting financial institutions are the disruptive business models used by traditional and non-traditional competitors and the increasingly high consumer expectations concerning how products and services are digitally promoted and sold. To successfully address these dynamics, banks and credit unions must consider how practices used by retailers can be applied to financial services. Such an approach represents a significant change from “business as usual” for financial institutions. The good news is that few organizations possess more data about the activities and preferences of their customers and members, and the information contained within this data offers a variety of ways to enhance and grow revenue.
Revenue Enhancement in the Digital Age
SRM helps its clients think more like retailers. Our revenue enhancement practice applies a proven methodology to compare our client’s current structure of accounts, programs, and services against those of peer institutions to identify gaps and opportunities. We focus on key areas such as interest income, non-interest income, funding costs, and expense control. Then, applying insights gained through work with hundreds of banks and credit unions, we identify earning enhancements and market opportunities utilizing channel and customer segmentation.
These tools are used to develop strategies and tactics that will help financial institutions find, address, and leverage delivery methods for value-added products and services in today’s dynamic environment. For example, in the past the branch was the locus of marketing within banks and credit unions, with direct mail, call centers, and online banking providing a supporting role.
Today, mobile devices – smartphones, tablets, et al – have become the main point of contact for most institutions with online, call center, and branch channels offering the assist.
Understanding how to leverage these new distribution channels in a way that increases sales to customers and members must be the nucleus of any revenue enhancement effort. In addition, given the rate of change in how technology is being used in financial services, these revenue enhancement strategies must continually be re-evaluated and modified to ensure optimal results.
Areas of Focus
SRM’s revenue enhancement programs focus on increasing the revenue potential of areas such as mobile P2P, bill pay, money transfer, fraud, warranties, and price protection. We utilize personalized marketing programs in areas such as credit line management and utilization, spend and get offerings, and loyalty/reward promotions. SRM has worked in a broad range of product and services such as bill pay, NSF, overdraft, EFT, checks, mortgages, lines of credit, credit and debit card portfolios, float, item processing improvements, commercial loans, cash management, and commercial payment processing.
Our assistance in these areas ranges from facilitating the vendor selection process to reviewing pricing strategies in specific areas of the payments business (e.g., consumer lending).
Since 1992, SRM has built its reputation around trust and results. Using a proprietary database of industry contracts and pricing, SRM has delivered more than $2.2 billion of value over 700 financial institutions. Visit www.srmcorp.com for more information and follow the company @SRMCorp.