Help Your Customers Build Generational Wealth and Grow Opportunities for the Future

Interest rates continue to remain at record lows, and the recent employment numbers are showing improvement as we continue to recover from the COVID crisis.  Now that the economy is recovering, there are opportunities for financial institutions to help their customers get back on track for planning and preparing for the future.  Two of those areas include providing guidance and assistance with the planning and saving necessary to buy a home and providing the guidance, support, and services that will enable them to save for retirement.  

An article published by the US Census Bureau mentions that the most significant contributors to household wealth are home equity and retirement accounts, which accounted for 62.9% of households’ net worth.  Providing guidance and assistance in these two critical areas will help your customers build generational wealth and provide opportunities for themselves and their families in the future. 

 

 

Insight Financial Marketing® (IFM®) has an industry-leading solution that provides deep insight into customer behavior and financial activity.  Using IFM’s advanced data analytics, your financial institution can identify key characteristics about your customers in near real-time and identify the segments likely to be more receptive to specific messaging in these critical areas.  

IFM offers event-based alerts and marketing campaign files that allow you to message your customers at the right time so you can provide them with the guidance and support they need to build wealth via homeownership, investing, and saving for retirement.  

To learn more about IFM’s services, you can visit our website or communicate with me directly via email or voice at rreale@infimark.com and 703-856-4060.

 

 

ACH Volume Soars At Record Pace

Wow!! Have you seen the new information that the National Automated Clearing House Association (NACHA) has posted about ACH transaction volume during the second quarter of 2021?  Volume soared at a record pace

According to the post, the quarterly volume of 7.3 billion was an increase of 9.9% from the same period in 2020. The value of those payments was $18.4 trillion, reflecting a nearly 25% increase from a year earlier. Additionally, during the first quarter, a “new record was set in February when ACH volume averaged more than 118 million payments per day, the ACH Network’s highest daily average for a month. The second was in March, when ACH volume hit 2.7 billion payments, the largest monthly volume in ACH Network history. This included approximately 110 million economic impact payments by Direct Deposit from the federal government.”

 

In March, ACH volume hit 2.7 billion payments, the largest monthly volume in ACH Network history.

 

Clearly, these numbers show that the COVID pandemic has accelerated a change in behavior

amongst consumers and businesses to adopt electronic payments and digital money movement.  Drilling down further into the Q2 numbers, we see that P2P transactions increased by 24.2% from the year-ago quarter, B2B activity increased by 28.7% and internet transactions increased by 14.3%. 

These volume numbers indicate that the rapid growth of transactions within the ACH network has not only continued to grow but are now growing at a record pace.

Question:

Why are ACH transaction volumes increasing so quickly and how will financial institutions adapt to this change in behavior from a customer intelligence perspective?

Answers: 

More and more consumers are choosing to conduct their lives online and in the mobile space. This includes entertainment, travel, paying bills, sending money to family, friends or businesses, shopping, buying digital currency, being paid by Direct Deposit, and investing. Businesses are also moving away from paper checks and adopting digital payments. From a financial institution perspective, firms will be challenged as their customers will be expecting that when moments that matter occur, their financial institution will be there for them, in near real-time with the right guidance and the financial products and services that meet their needs.

Customer Expectations Are Changing To Near Real-Time

Customers will be expecting that when moments that matter occur, their financial institution will be there for them with the proper guidance, financial products, and financial services that meet their needs.

Insight Financial Marketing has an industry-leading solution that will enable your financial institution to better understand consumer and business behavior in near real-time.  We have a proprietary analytical approach that identifies pattern changes, life events, and lifestyle changes that will help your FI to deepen relationships with your consumer and business customers. To find out how IFM can help your team better engage with your customers, visit us at our website, Infimark.com, or contact Rob Reale at rreale@infimark.com.  

 

IFM has recently updated and refreshed the content on our website at www.infimark.com. We’ve added information about our firm and the service we provide to financial institutions. Additionally, we’ve provided links to access our blog as well as our Quick Guide to Growing Bank Deposits ebook.

 

 

The customer intelligence that IFM provides is helping banks and credit unions understand pre-pandemic consumer and business behaviors as well as the change in behavior due to COVID-19 related impacts. IFM is assisting financial institutions of all sizes by providing insights that will help their customers regain their financial footing and continue to prosper during these challenging times.

If you would like information about IFM’s free trial please contact us through our website, LinkedIn page, or call Rob Reale directly at your convenience.

 

Insight Financial Marketing recently presented a webinar called: Outlook for the Future: Bank Strategy During COVID-19 and Beyond.

We discussed the rapid changes to the economy as well as the impact on the financial situation of consumers and businesses. Now more than ever, financial institutions must have a deep understanding of the financial needs of their consumer and business customers. If your FI has not adopted a strategy to leverage intelligence from your bank’s data to help identify customer behavior trends, it will be more difficult to keep and retain customers because of their rapidly changing needs.

The New York Times recently reported a graphic showing how states are at different stages of reopening across the country. Some are open as normal, some are reopening, some having paused their reopening, and some have reversed and are imposing new social distancing and business closings. The graphic shows how states have proceeded with balancing the spread of COVID-19 by reopening their economies. Even within the footprint of your financial institution, your customers’ financial situation may vary depending on where they live and work.

We also shared insights on how investors have reacted to COVID-19 and economic uncertainty.

Two points here:

    1. Investors have rewarded technology firms as consumers and businesses have shifted their digital behavior.
    2. Retail investors are much more active in the markets due to technology applications that have facilitated free stock trading (driven primarily by the growth of fintech firm Robinhood).

The spending behavior of consumers has been shifting as well. The top earners have dramatically reduced spending while the lowest earners have remained the same. We discussed how the CARES Act has led to a rise in deposits, especially for the largest banks in the country.   In addition, most financial institutions have seen a more modest rise in deposit balances compared to the top 5 largest banks in the US.   The combination of reduced spending by high-income earners, and the influx of stimulus and COVID relief payments from the government will not continue for long. We believe that deposit retention and growth will continue to be important in the years ahead, especially in a low rate environment.

If you are interested in viewing the 30-minute webinar, please let us know. We will gladly provide a link to view the recording.  In the meantime, check out our latest vlog for a snapshot of the webinar content.

 

 

Insight Financial Marketing is an industry leader in helping financial institutions leverage customer insights, detect behavioral changes, and adopt a strategy to better serve the rapidly changing financial needs of its consumer and business customers. To learn more about utilizing our Intelligentsia™ technology please visit our website.

A new age of technology exists, and things are moving very fast. Because of this, the banking sector has begun to utilize more of the modern technological advancements. Many of these advancements are leading banks to use data and artificial intelligence (AI) for higher levels of personalization and consumer fulfillment. These trends are only going to grow. Here is a look at the role new technology plays in modern banking.

Keeping Up With The Disrupters

While many in the banking sector were trying to maintain the status quo, disrupters turned up with digital banking and financial solutions utilizing modern banking tech and the mobile devices. These developments forced all banks to reevaluate and start to implement changes to how they service their customers. Now, most banks have applications that work fast and provide services people want their banks to provide.

Mobile technology is playing a significant role for banks, and fine tuning those digital offerings is something into which these banking institutions have put a lot of effort. Artificial intelligence (AI), big data, and predictive analytics are becoming the norm in the banking industry for these reasons.

Bringing Core Services Online

Along with the mobile push comes the push to put core banking services online in general. Banking portals of the past contained heavy limits and often did little to improve a customer’s experience.

Forward-thinking banks have started to utilize modern techniques to attract customers to their financial solutions, and allow customers to make banking decisions quickly and without hassle. Responsive design and a focus on turning technology towards customer service have created vast improvements for the banking industry.

Once again, a lot of this comes from investments in analyzing data and AI. This is especially true of online banking services that can help someone in real-time. By anticipating their questions, banks can provide automated and personalized solutions. Banking tech is assisting financial institutions to do more while saving money in the process.

Creating and Fostering Greater Levels of Personalization

People want to feel like their financial institutions know them, care about them, and are looking out for them. People interact with their banks and bank products all the time and with greater frequency. Each of these interactions is an opportunity for a bank to learn more about their customer.

For example, consider someone who regularly loads funds to their favorite coffee store mobile app every week for a year, from their bank account.  This transaction trend reveals one particular behavioral characteristic about the customer that, along with other data points, present your financial institution with information about the customer’s preferences and lifestyle.  Over time, as new transactions and transaction types are analyzed, and the historical amount of data available to analyze increases, new opportunities to cater to specific customer needs will be identified.

In the near future, a financial institution will be able to anticipate a customer’s needs and gain insight into what the bank can further do to retain that person and other people like them.  Advanced data analytic solutions make it easier for banks to identify trends and make individual suggestions for how to engage customers, that work on a more personal level.

AI, along with advanced data analytic capabilities, help banks learn more about their customers and how to take care of them on a personal level.  The fact that data analysis can create a more human experience for customers is one of those areas in which banks are finding a lot of value in, and is one area that will also create a healthy return on investment into the future.

Data Science and data analytics plays a crucial role for banks at every level and in every department. In this way, technology serves to unify many of the disparate banking departments so the bank can create a better, more secure, and personal experience for each of its customers. Financial Institutions who aren’t doing this, or planning to do this, will find themselves left behind. Reach out to our team at Insight Financial Marketing today to learn how your business can get started with the latest innovative solutions that will increase your bank’s ability to engage each customer with a more personalized experience.