Best ways to generate non–interest income for banks and credit unions
Financial Times recently reported that the six biggest U.S. banks suffered their steepest decline in quarterly revenues since 2011, but banks with significant consumer divisions experienced an increase in net income. In order to maintain favorable cost-to-income ratios, banks and credit unions must find new ways to drive non-interest revenue. One way to do this is by implementing programs that focus on growing customer relationships. One such program is Vantiv Xcelerator, which offers solutions to help optimize portfolio revenue growth and attract cardholders. Let’s take a closer look.
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. Vantiv Card Marketing is different.
An end-to-end campaign solution, Vantiv Card Marketing gives institutions 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 from 2015 show that Vantiv Card Marketing customers are growing 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. According to the Mercator Advisory Group, 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.
Vantiv Rewards! 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. 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.
Supplementary ATM services
U.S. consumers conduct more than 14 billion transactions a year via ATMs, according to Retail Banking Research Ltd., and The Tower Group reports that 95 percent of banking and credit union customers use ATMs annually, far exceeding the number of people who visit a branch or bank online. As the primary banking interface for the majority of consumers, the ATM is a critical customer touch point. Institutions that capitalize on this interaction by offering more than just cash stand to benefit in many ways.
Vantiv ATM elevates the status of the popular self-service channel from a cash dispenser to a customer relationship tool. In addition to facilitating deposits, withdrawals, and EMV transactions, Vantiv ATM gives institutions the ability to offer other services that are usually only provided in a branch. Institutions can personalize marketing messages on supplementary products that drive revenue such as stamps, gift cards, and merchant offers. Additionally, institutions can remotely monitor ATM systems and usage, to help reduce costly and time-consuming service calls.
As banks and credit unions face turbulent markets and changing regulations, implementing programs that drive non-interest revenue can help improve the bottom line. To find out how Vantiv Xcelerator offerings like card marketing, cardholder rewards, and supplementary ATM services can benefit your institution, contact us.