The pandemic and war in Ukraine have created an environment of economic insecurity, which has led many individuals and businesses to seek alternative sources of income. For financial institutions, this means looking for ways to increase revenue.
And in these trying times, many financial institutions are looking for ways to increase revenue. While there are many ways to skin a cat, so to speak, here are some effective ways financial institutions can increase revenue.
Increase Fees for Existing Services
One way to quickly increase revenue is by increasing fees for existing services. If you’ve been charging $30 monthly for online banking, consider increasing that fee to $35 or even $40. You may lose a few customers in the process, but the ones who stay will be more than happy to pay a few extra dollars per month for the same service they’ve been getting.
Financial institutions should also consider increasing fees for other services, such as wire transfers, ATM withdrawals, and account maintenance. Even a slight increase in these fees can add significant extra revenue over time.
But before increasing fees, financial institutions should also inform their customers of the reasons behind the increase. If customers feel like they’re being nickel-and-dimed, they may take their business elsewhere.
Offer New Services
Another way to increase revenue is by offering new services. If you don’t already provide mobile banking, now might be the perfect time to roll out that service. Customers are always looking for new and convenient ways to bank, and if you can offer them what they’re looking for, they’ll be more than happy to pay for it.
To ensure the financial institution offers services suitable for its customers, it should complete a needs analysis. This will help the company discover what services customers want and develop a plan to provide those services.
Think about what else your customers might need or want, and then find a way to provide it. It’s not enough to simply offer the same services as everyone else. You need to find a way to stand out from the competition and offer something that they can’t get anywhere else.
By offering new and innovative services, you’ll be able to increase your revenue and keep your customers happy.
Increase Promotional Activities
One of the best ways to increase revenue is by increasing promotional activities. When customers are aware of all the great products and services your financial institution offers, they are more likely to take advantage of them. Promotional activities can include advertising, PR, and marketing initiatives, as well as events and activities that bring your customers and team members together.
When it comes to advertising, creating a consistent message across all mediums is vital. Customers should be able to clearly understand what your financial institution is all about, what products and services you offer, and why they should choose you over the competition. The tone of your advertising should be upbeat, showing that you’re proud of the services you provide.
PR efforts should also focus on promoting the positives. Customers seeing positive news stories featuring your financial institution can help build trust and strengthen relationships. And finally, marketing initiatives should be designed to reach new audiences while deepening relationships with existing customers. Events and activities can be fun to get customers involved with your brand and learn more about what you offer.
But you should also watch out for fraudulent activities to ensure you attract legitimate customers who will use your products and services. Working with reputable companies offering fraud analytics tools to verify customers is an excellent way to guard against individuals who may be trying to commit fraud. Verifying identity is essential to ensure the customer is legitimate and prevent illegal activities by fraudulent individuals.
Raise Interest Rates
Another way to increase revenue is by raising interest rates if you offer savings accounts or certificates of deposit. This will entice new customers to open accounts with your institution. Existing customers will also stick around since they won’t be able to get the same rate elsewhere. Just be sure not to raise rates too high, or you’ll price yourself out of the market.
Financial institutions should also ensure that interest rates are cost-effective. This can be done by evaluating the institution’s overall cost of funds and making changes accordingly.
There are many ways for financial institutions to increase revenue. Some methods are more effective than others, but all of them have the potential to produce results. The key is finding the right method or combination of methods for your particular situation and executing it flawlessly. With a little hard work and dedication, you should be able to achieve your desired results in no time flat.