Top 10 New Year’s Resolutions for Banks to Generate More Business in 2016
What do you plan to do differently in 2016 to be more competitive and drive real business results?
“Banks face three critical battles: restoring customer trust, defending their payments business from new entrants and avoiding commoditization,” according to management consultancy Accenture in its latest forecast “Banking 2016: Next-generation Banking.”
For the New Year, seriously consider adopting one or more of the following measures to help achieve a successful 2016.
The strategies you select should be unique to your goals, but these options make sense for just about any large financial institution.
Upgrade Security & Fraud Coverage
Two-thirds of consumers surveyed said they would switch their financial institution if personal information were stolen by cyber criminals.1 Check that you’re deploying effective tools to diminish your institution’s exposure, and ensure that if you are breached that you can help minimize client losses and reputational damage.
Expand Your Card Portfolio
Last year saw a 21 percent increase in bank-issued cards over 2013, far outstripping the 3 percent increase in retail-issued credit cards for the same period.2 With 78 percent of American families having at least one bank-issued card, what will you do in 2016 to help you grab more of a share of the growing appetite for bank-issued cards?3
Complete Your EMV™ Transition
If your institution’s cards already are EMV™ enabled, nothing to see here.4 Otherwise your institution becomes liable for any fraud committed by non EMV™ cards. By the end of 2015, more than 1 billion payment cards in the United States will be chip-enabled.5 What are you waiting for?
Drive Revenue through Referral Relationships
Explore merchant acquiring referral programs and alliance partnerships that allow you to offer new and more profitable business solutions to your business customers – with lower expense and risk. Then focus on your core banking products and services while generating new revenue streams through these revenue-sharing partnerships.
Improve Your Fraud Analytics
False declines cost merchants $118 billion in legitimate transactions each year, far outweighing the $9 billion cost of real fraud.6 For issuers, this loss of sales means loss of interchange income. Now is the time to review your fraud analytics and predictive capabilities to make sure your institution can respond nimbly in a modern marketplace.
Offer More Mobile Banking Bells & Whistles
Sure, 82 percent of financial institutions offer mobile banking, but 39 percent of customers are not taking advantage.7 Bridge that delta by enabling customers to do more than just check balances. Consider offering mobile card controls, where they can adjust spend limits and participate in their own fraud protection. That way, when they reach for their wallet, they pull out your card and not one from a competitor.
Fine-Tune Customer Service & Dispute Resolution
Eighty percent of consumers surveyed who switched banks due to poor service said they could have been retained if their issue was resolved on first contact.8 What is your institution’s dispute resolution scorecard? Remember, retaining customers is much less expensive than acquiring them, so if customer service is not a strength, build it up or work with an experienced provider.
Drive More Business from Commercial Accounts
Today nearly half of all U.S. businesses still use paper checks to pay their bills, incurring thousands of dollars in costs needlessly.9 Invoice automation is one of many commercial payment options you can offer to address their payment needs, and increase your revenue in 2016. With so many businesses in your market desperate for help, you could help solve their problems (and not software providers).
Expand Your ATM Coverage Network
Despite the rise of alternative payment options, today approximately 75 percent of consumers in the United States still use ATMs as part of their everyday banking activities.10 Are you providing your customers with access to enough retail locations?
Reduce Card Processing & Production Costs
From plastics personalization and production, to statement processing, remittance, inventory tracking and warehousing, consider outsourcing to help reduce card-related costs. “Issuers should consider the size of their card operations, level of in-house maturity, cost of processing per transaction, and the overall outsourcing strategy when considering the right outsourcing model,” Cap Gemini advises to financial institutions weighing outsourcing options.11
Want to learn more or schedule your free 2016 Executive Briefing? Click here to submit your questions and comments today!
1. “The 2015 Makovsky Wall Street Reputation Study,” Makovsky / Ebiquity, May 2015
2. Equifax National Consumer Credit Trends Report, 2015
3. “The Business of Banking,” American Bankers Association, 2015
4. EMV™ is a trademark owned by EMVCo LLC
5. Javelin Research & Strategy, 2015
6. “The 10 Most Pressing Issues in E-Payments,” Digital Transactions, 2015
7. “Mobile Banking, Mobile Payments Survey,” RateWatch, 2015
8. “Banking Customer 2020: Rising Expectations Point to the Everyday Bank,” Accenture, 2015
9. “AFP Electronic Payments Survey,” Association for Finance Professionals, 2015
10. “Consumers and Mobile Financial Services 2015,” Board of Governors of the Federal Reserve, 2015
11. “Should Card Issuers Outsource or Process In-House?,” Capgemini, 2013