The past year has brought many changes to the Financial Services Industry and so far in 2021 the indications are there is more to come. Mergers and acquisitions within the top 50 largest banks in the U.S. are reshaping the landscape, changes at the periphery of the industry are also having an impact. Several of these developments include Lending Club’s acquisition of Radius Bank, Square receiving an industrial bank charter, the growth of SoFI and Cryptocurrency (One Bitcoin > $50,000), as well as usage increases of retail merchant apps (i.e. Starbucks and Chick-Fil-a), and digital signature technology. Additionally, the payments environment is also shifting as ACH transaction volume surges and P2P transaction volume continues to increase with more usage of PayPal, Venmo, Square’s Cash App, Apple Pay, Apple Cash and the Apple Card, and Zelle (btw… JPMorgan has ended its ChasePay service).
How will your Financial Institution adapt to these changes?
These changes indicate that your FI’s customers are being enticed to move an ever-increasing portion of their financial relationships away from your institution. What steps can you take to mitigate the depletion of deposits, loans, credit, and payments? One critical step will be to identify when to communicate with your customers and with what message. Using advanced data analytics that can shed light on customer behavior changes and provide customer insights are critically important. Being able to predict future needs, and delivering timely offers that provide solutions, will give your institution an early ability to retain and grow relationships with your consumer and business customers.
Technology is available today to protect your tomorrow.
IFM’s industry-leading solution can help alleviate your institution from flying blind when it comes to understanding current and future trends and identifying opportunities to deepen engagement with your customers. When FinTech firms like Venmo and Robinhood were launched, early transaction volumes and dollar amounts were low. However, what was significant was the tremendous rate of growth. In today’s environment, it doesn’t take long for new technology to go viral and impact behavior. When your customers experience life-changing and lifestyle events your ability to be there, in a timely manner to support your customers as they navigate through these experiences, is increasingly important. Now is the time to implement IFM’s solution to protect your institution from competitive forces in your ever-changing industry. Contact us today to learn how your FI can leverage our free evaluation and industry-leading customer insights.
Rob Reale is an Associate Partner and National Sales Manager responsible for business development and sales at Insight Financial Marketing. Rob began working in the Mortgage Banking industry in 1990 and currently helps the financial service industry leverage unique and innovative solutions.