Capitalize on customer insights to stretch non-interest income

New regulation, emerging competition, and changing customer preferences is a cause for added stress and pressure on retail banks to increase non-interest income. This is a problem for retail banks that aren’t measuring customer activity such as product penetration, activation, debit card usage, and online banking or bill pay. Even worse, some banks that are capturing such data are not leveraging the data to drive new sources of growth and profitability. What good is capturing data if it’s not being analyzed to advance pressing issues, such as non-interest income?

Ask yourself, do you know how many channels, products and services a typical customer at your retail bank uses? Do they prefer mobile or online banking, and what are their typical transaction habits?

If you’re not in the know, then how can you expect to know which customers are profitable and what activities are driving their profitability? You start tracking it.

Retail banks looking to boom in this economy by improving profitability and customer satisfaction should focus on capitalizing on non-interest income through customer-driven strategies. Doing so can could result in benefits such as:

  • Improved customer satisfaction and loyalty
  • Increased revenue via interchange and service fees
  • Reduction in the cost of servicing customers
  • Decrease in the cost of funds

Developing a strategy to analyze your customer’s habits will arm your organization with the data and metrics to make more effective business decisions resulting in better financial performance.

Are you ready to unlock the power of data?

Joe DeCosmo is the director of advanced analytics at West Monroe Partners and Neil Hartman is a the director of West Monroe Partners’ Banking Practice, leading the firm’s Midwest Banking team

Phone: 312-602-4000
222 W. Adams
Chicago, IL 60606
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