Best ways to generate non–interest income for banks and credit unions
Banks and credit unions must find new, efficient ways to drive non-interest revenue. One way to do this is by implementing programs that focus on growing customer relationships. Let’s look at way to help optimize portfolio revenue growth and attract cardholders.
Promoting your institution’s card over others can go a long way in securing cardholder loyalty, but many institutions lack in-house resources or rely on outside agencies that do not understand industry nuances. Card marketing programs typically address low card activation and declining card usage, but few offer a complete solution. Worldpay’s card marketing program is an end-to-end campaign solution with access to a comprehensive calendar of promotional offerings and customized campaigns.
Package options are based on annual revenue growth goals and are easy to implement and monitor. And they are effective; campaign results have shown that Worldpay card marketing customers can grow 82 percent faster than customers not utilizing card marketing programs.
As with any business, loyal customers translate into higher potential revenue. Cardholders who have more products with your financial institution are more loyal and are likely to carry higher balances. An attractive rewards program is the most compelling reason for a consumer to choose one credit card offer over another. However, some cardholder rewards programs fail due to revenue model challenges, and enrollment and redemption hurdles that result in low customer adoption rates.
Worldpay’s rewards program is different. The points-based rewards program is easy to implement and cost-effective to maintain – and features incentives that are attractive to cardholders and easy for them to redeem. Financial institutions can customize a program that fits their specific earn ratios, and have access to a branded website, bonus point promotions, integration with FI products, and other valuable features.
ATMs as marketing tools
U.S. consumers conduct billions transactions a year via ATMs with many banking and credit union customers using ATMs more so than visiting their branch or banking online. As a primary banking interface, the ATM is a critical customer touch point. FIs that capitalize on this interaction by offering more than just cash stand to benefit in many ways.
Worldpay’s ATM services elevate this self-service channel from a cash dispenser to a customer relationship tool. In addition to facilitating deposits and withdrawals, it gives financial institutions the ability to offer other services that are usually only provided in a branch such as personalized marketing messages on supplementary products like stamps, gift cards, and merchant offers.
As banks and credit unions face a changing industry, implementing programs that drive non-interest revenue can help improve the bottom line. To find out how Worldpay’s offerings like card marketing, cardholder rewards, and supplementary ATM services can benefit your institution, contact us.