According to a recent article titled Banks’ Fee Bonanza Dries Up in the WSJ , “Banks are making less money from customer-account fees than at any time in the past seven decades as strict government rules and changing consumer behavior squeeze a major source of revenue….The turnaround is an example of the ways the regulatory clampdown that began after the financial crisis, as well as the fast-growing popularity of online and mobile banking, are changing behavior at U.S. banks.”
Banks today are facing a historical threat, not unlike what the publishing industry recently experienced, with non-bank competitors quietly nibbling away at their customer base. It is time banks learn to conduct business in a competitive environment and grow revenue from new business to replace lost fee revenue.
The first step is to reestablish their relationships with their current customers and evolve their consultative sales process to be consistent and repeatable throughout all their channels. To do this, banks must own the customer experience and make it the centerpiece of every customer engagement, in every channel. To get started, banks need to internally pay attention to people, process, and technology and put the tools in place to be able to measure each one of these in each channel.
There are technologies that have been developed just for banks to do this. Patented technology with a combination of guided selling that incorporate a great customer experience with intelligent data will show banks how to recover lost fees within 18 months. Best of all the banks don’t have to invest in expensive equipment or IT resources. With a cloud based technology solution the bank can reap rewards from day one of implementing this omnichannel solution. Using this technology banks are seeing a 2x increase in income-generating products selling products that the bank already has.
Is your bank ready to recoup lost fees with revenue generation? Let’s chat. Click here for more information.
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