800-809-2307
Four Letters. Infinite Potential.

The Right Mix of Services Can Expand Your Bottom Line

By Mark Roe, National Director

As consumers demand more speed and convenience when transacting their financial business there is no doubt you face the challenge of how to effectively meet changing service demands and remain viable. On the one hand, if you don’t offer the same level of mobility and product diversity as your competition, your profitability will suffer. But simply implementing every new product or technology won’t necessarily address the preferences of your account holders...nor will it have the best impact on your bottom line.

Are you really getting into details tied to your performance to see actual improvement?
You may already benefit from taking periodic measurements of your ratios and trends on a monthly, quarterly and annual basis – or when you’re involved in strategic planning initiatives. But do you have a realistic view of what those ratios are telling you? How cost-effective and practical are your products and services? Are they providing optimal value for your institution and your account holders?

By reviewing all of the data, you can uncover the information necessary – through such tools as predictive analytics – to determine how product and service offerings can provide true benefit best meet the needs of your account holders. For instance, if a business account holder is conducting a high volume of business through a regular checking account, there could be a missed opportunity for service charge revenue. At the same time, the account holder could be missing out on access to ancillary services that would be valuable for running their business. 

Likewise, account holders who frequently overdraw their account and experience a high number of returned check fees could benefit from the financial peace of mind provided by a fully disclosed overdraft program. And the resulting fees for offering a service could provide much needed income for the bank or credit union.

Realize your income potential
In today’s business environment, you can’t be successful by doing business the way you have always done it. The more information you have about how to increase your product profitability, the better equipped you will be to stand up to the competition.
 
A product profitability study is an effective tool that examines your products to make sure they are providing the most benefit for your institution. For instance, debit card income is generally either the first or second largest non-interest income opportunity. And while an increase in this line item does not impact your account holders, it can provide a healthy boost to your bottom line. 

Identify products that most closely align with account holder needs and boost revenue
Having a strong focus on account holder interaction can result in a win-win situation. The time your account service representatives spend getting to know the kinds of services really needed can help you avoid the tendency to add every new product that comes down the pike and re-enforces your commitment to truly personalized service. 

Most organizations are not able to clearly see where there may be income opportunities or profit leaks. Partnering with an expert to conduct a study related to account holders and product profitability will help to identify and implement changes in your product mix that can result in achieving better results. 

 


 

For more information about reducing expenses contact us or call 800-809-2307.


 

 


 

 

100% 12 months 2020 2020 vision 40 years abusive abusiveness Academy account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders accountability Achieve achievements Advancements Advice Agreement alerts Americans analysis Analytics announcement ask the expert Assistance ATMs Attendees attorneys attracting talent auto loans Automation B2B Balance Bank Bank of Pacific Banking banking services banks banks and credit unions batching Benefit best practices board governance board member board of directors Bob Layendecker bottom line branch equipment branch profitability branding Bryan Hanks budget budgets bundling business business culture business environment business practices business processes business strategies calendar career advice Career Goal CARES Act case studies Case Study CDC CEO CEO onboarding certainty CFPB Challenges change charitable Checklist Cher Cheryl Lawson Choose Chris Karstens claim clarity class action class-action lawsuit Classroom clients Cloud Cohron collections CommFirst Federal Credit Union commitment committed Communication communications communities community community banks Community Outreach Referral Program Competition Competitive Complaint Compliance compliance examinations compliance risks compliant condition conduct Conferences connection Consistency Consistent consultant Consultation consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumer-focused Consumers Contactless cards Contingency Contingency Pricing contingency-based contingency-based fees Contract Contract Analysis Contract Negotiation contract negotiations contract negotiator Contract Optimizer Contract Renegotiations contract review contract staffing Contracts Convenience core processor contracts Cornerstone Credit Union League coronavirus corporate culture corporate governance costs Courtesy Pay COVID-19 CPE credits Credit Card credit card contracts credit card processing credit cards credit report Credit Union Credit Union Vendor Management credit unions crisis Crissandra Fry CSS culture customer customer experience customer service CUVM cyber security Damian Data Data Analytics database Deal debit debit card contracts Debt deceptive Decisions Demand Letters Department of Labor Deposit deposits Development Dick Miller digital directors Disclosed disclosures discounts Discussion Dodd-Frank Act dollars donation Donna Sumrall Dynamic Economic economy Education efficiency studies election Email Emergencies Emergency employed employee employee retention employees EMV migration enchancing productivity enforce enforcement Engagement Errors evaluation Evolve executive search Expectations Expense expense management expense reduction expenses Experience Expert expert negotiations expertise Experts expire Facilitators families FastTrack FDIC Federal Reserve Federal Reserve Board fee Feedback fees Financial Financial Institution financial institutions financial services financial stability Financial Worry FinTech Fixed limits Fixed-limit Floyd's Forum Forrester Free Analysis full disclosure Fully Fully Disclosed fully disclosed overdraft program funds Gen Z Generating Income generating leads generation Generation Z Gift global Goals governance government government agencies Grow Gym Halloween Hammond Happiness health hiring HKW Holiday Holidays Houston Area Food Bank Houston Livestock Show and Rodeo HR HR policies Hubur human capital human resources Implementation important Improved improved efficiencies improved results Inc. income income enhancement Industry Innovate Innovative Institution interests internet banking services interview strategies interview tips IT contracts Jackson Jai Jai Darden James Jamone Moore Jan Southern Jennifer Peoples Jennifer Simmons Jim Griffis Jimmy Nguyen JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege Joe Marsh John Cohron John M. Floyd John M. Floyd & Associates judicial justification Kelli Silvernale NCUA Kelly Flynn Kennedy knowledge law lawsuits Lawyer leaders leadership Learn Learning Legal legal risk legislative lending program Lesson leverage Limit Limits Literacy litigation litigators lives loans local Long Term Long-Term lost revenue Maggie Thompson Maintenance manage Managed management Mark Roe marketing marketplace Mary Soergel Matrix Matrix-based measurable measurable results meeting Member Members Midwest Region Millennial Millennials mindset minimalism minimalist Mississippi Missouri Mobile Banking Model monetary Money Morrison & Foerster Partner mortgages Most Valuable Provider NAFCU NCUA Needs negative balance Negative Settlement Negotiate Negotiating negotiating contracts negotiator Net Operating Analysis New Decade new revenue New Year New Year's Next Generation JMFA Overdraft Privilege NOA Non-Compliant non-disclosed Non-Interest Income NSF NSF fees Obrea Poindexter OCC Officer Oliver Ireland onboarding Online Opportunities Opportunity Opt-In organization Organizational Health Outcomes outsourcing Overdraft overdraft compliance overdraft coverage overdraft fees overdraft practices Overdraft Privilege overdraft privilege program overdraft program Overdraft programs overdraft protection programs Overdraft Protection Service overdraft service overdraft services overdraft strategy overdrafts overdrawn Overspending pandemic Partner partnership Paul McFarland paycheck emergency payday loans Payments Penalties Pennsylvania performance personnel physical distancing plan planning Plus4 Credit Union podcast Podcasts policies Policy POS Positive Swipe practice practices Press Release Privilege Manager CRM proactive procedure Procedures process process improvement Processing product profitability Productivity Products Professional Profitability Improvement Program Program Management programs prohibited project staffing Promotions Proposals Provider providers PwC Quality quantity Reactive reality Reassess Recruitment Services recruitment strategies reduce expenses refer referral Reg E regional director regulation Regulation E regulations regulators regulatory relationship Relationships remote Renegotiate Renewal Reporting Reputation resolutions Resources Results Retail Retaining Employees Retention Retirement revenue revenue enhancement review Richard Miller risk risks ROI Ron Jennings Roy Roy Seifert Rules Ryan Armstrong Sales Salesforce Satisfaction savings Scrutiny secrets Security senate Senior Relationship Manager service service agreements service contracts service delivery Services Sessions settlement shareholders Sheila Bridges Shopping social distancing Social Events social media Software Solution specialization Spending staff staff development staff spotlight staff training staffing staffing gaps staffing studies staffing study stakeholders standard Statistics stimulus payments Strategic Planning Strategies Strategy streamline Stressful succeed Success success factors Succession plan succession planning Support survey Susan Prell system talent team team members technology technology costs technology upgrades technology utilization temporary staff term Text Third-Party Expert third-party providers third-party vendor contracts third-party vendors threat three Tim Strandquist Time Tools Tools and Resources Tracking Trainer training transaction Transparency Transparent Travel Treats trends Trey Martin Trust UDAAP uncertain times unemployment unfair updates Upgrades Value Variable Variable Limits Vendor vendor agreements vendor contract negotiations vendor contracts vendor management services vendor performance vendors video violation volunteer Walker Washington Washington Savings Bank Webinars weeks Westmoreland Community FCU Whitney & Company Wish list women work Workshops YouTube