Collector workflows automate customized borrower outreach, to encourage faster payment and ensure that no communication steps are missed. We expect checking account economics to improve with rising interest rates. In order to execute your treasury agenda, gaining senior-level buy-in is crucial. Efficient workflows and automated outreach allow for earlier and more frequent debtor communication. The first is for a bank to use its internal data more effectively for its own operations by adding new analytics capabilities. Growth strategies Banks can’t ride fee income gravy train much longer Noninterest income has bolstered profits this year. Utilize data analytics to improve fundamental product economics. Banks need to re-establish the branch as a destination, a place where people want to go versus a stop for an infrequent errand. There has long been a disconnect between the willingness, even preference, of customers to consolidate multiple relationships at their primary financial institution, and banks’ ability to effectively execute strategies that accomplish this. Combined with focused sales processes and product-bundling strategies, these methods produced an 85% improvement in household when implemented by one of our clients. There are barriers to the development of … Although conventional wisdom commonly warns of the death of retail banking, community banking is alive and well… but could be doing much better. Community banks are more dependent on deposit fees compared to larger institutions and this makes them vulnerable to a transactional model where consumers acquire low margin products from their primary bank but use specialized providers for high-margin products, such as investments and loans. But its growth is expected to slow over the next two years, making for a … Fifty-five percent of the owners of small and medium sized enterprises are willing to consolidate their personal and business relationships at the same financial institution, according to a BAI Research report. © 2020 Intelligent Banking Solutions, Inc. All Rights Reserved, Banking Strategies for Growth: How to Grow Income & Reduce Risk, Increase Bank Profitability with Customizable Debt Collection Technology, Increase Loan Volume and Decrease Delinquency Risk for Your Bank or Credit Union, Execute Your Banking Strategies for Growth with Scalable Collection & Recovery Solutions, How to Mitigate Risk in Banking: Use CARM-Pro™ Debt Collection Software, Frequently Asked Questions About Banking Strategies for Growth, Pre-alert debtors of reoccurring near term (future) payments due, Initial contact immediately at past due status, Much earlier subsequent debtor communications, More frequent debtor communication during the delinquency, Communicate to debtor via any debtor preferred communication channel: email, SMS, USPS, deliver pre-recorded blended voice messages or simplified dialing, Provides additional communication channels (pre-recorded voicemail, SMS, email), Expands the collection period beyond the daily hours that collectors are typically in the office, Increases the probability of debtor contact and subsequent follow-through with payment, Reminds borrowers of payment deadlines and holds them accountable. Sales excellence should focus on consistent, structured conversations at account opening and other significant client discussions. Collectors can then efficiently customize and schedule all debtor outreach via automated, tracked and recorded delivery of email, postal mail, SMS and dynamic voicemail. However, as the economy strengthens, these gains may be offset by competitive pricing pressure. Peoples Bancorp of Marietta, Ohio, has thriving wealth management and insurance subsidiaries. It also decreases risk by not compromising the frequency of follow-up communications with delinquent debtors. Global Banking … Â. Attack is the best form of defence, and growth strategies may help banks to remain competitive in a fast-moving and rapidly-changing financial services landscape. Every bank or credit union has its own unique banking strategy for growth. This robust debt collection system enables your collection staff to execute your financial institution’s collections strategy. Get more work done, with the same staff, deploying comprehensive CARM-Pro™ automation capabilities. The Right (and Necessary) Policies. The few “experience leaders” emerging in retail banking are generating higher growth than their peers by attracting new customers and deepening relationships with their existing customer base. Yet, in the past, investment in training has not been sufficient to reverse the downward trend in branch sales productivity. This website uses cookies and third party services. Simple presence in the community doesn’t automatically create gravity and attraction – that requires more focused programs. With compliance seemingly always at the forefront, policies … Early analysis suggests potential reductions in OD revenue in the range of 25% to 50%, with the impact beginning in late 2016. This scalable, user-friendly software also allows for unlimited collector assignments, and quickly adapts to enforce changes to the ever-changing economic environment, policies and regulations that affect your debt collection and recovery strategy. This proven software’s comprehensive … CARM-Pro™ Collection and Recovery Manager – Professional™ is a dynamic debt collection system that maximizes your collections team’s productivity, enabling them to work more past due accounts than ever before. BAI © 2020 All rights reserved. San Antonio, Tex.-based Frost Bank has a well-integrated approach to delivering financial services, even dropping the term “Bank” from their branding in favor of “Frost: Banking, Investments, Insurance.”. BAI is Bank Administration Institute and BAI Center. However, this high-end collection system technology allows for earlier and more frequent debtor communication, and manages risk to avoid a corresponding increase in losses and to gain a greater yield on higher interest loans. Historically, banks used direct mail to generate inquiries and branch lobby management to drive sales. Banks and credit unions can easily and accurately manage credit risk with CARM-Pro™ debt collection software.  This is because CARM-Pro™ efficiently streamlines and automates all the collection tasks defined by your internal policies and external entities (investors, insurers, and guarantors).  Without CARM-Pro™, even the most experienced collectors do not perform and fully document every single required action at the required time. Scalable CARM-Pro™ empowers bank & credit union executives to proactively implement bank branch growth strategies. Tools exist to predict how customers will value financial products, and what price they are willing to pay, with a high degree of accuracy. IBS pioneered customizable debt collection technology to solve the critical challenges of increasing bank profitability, growing loan volume, and reducing risk for all financial institutions. 4 The future of growth and the banking industry In the complex environment that defines the banking industry, the simple fact remains that strong customer relationships are still the most important contributor to a bank’s growth … Fewer customers are visiting branches as routine monetary and service transactions migrate to other channels. We see continued growth in our digital and mobile channels, with 37 million digital banking users; nearly 27 million are active mobile banking customers. The second opportunity is to encourage more profitable customer behaviors, channel usage and transaction activity. Any reduction of credit standards typically raises concern among executive management.   Financial institutions who increase their loan portfolio by lending to borrowers with lower credit scores gain a higher interest spread and greater interest income. Integrate your current banking policies, compliance strategy definitions and requisite collector actions to CARM-Pro’s unlimited database, and leverage full or collector action initiated work flows. Full automation of collector actions and borrower outreach allows banks and credit unions to increase loan volume and process required collections steps faster, with the same or fewer staff members. Expand relationship depth. Most bankers understand that excellence in … The lower acquisition cost is not just an end in itself, but it also allows for re-allocation of investment to future digital growth strategies. However, increasing loan volume by lending to borrowers with lower credit scores yields a higher interest spread, thus more interest income.Â. You can also raise external … 1. We believe community and regional banks have a unique opportunity to leverage a diversified financial services model. CARM-Pro™ debt collection and recovery technology by IBS is the sought-after solution for banks and credit unions seeking better banking strategies for growth. The best strategy to increase a bank or credit union’s loan portfolio is to create clearly defined policies, reduce credit standards, and use CARM-Pro™ debt collection technology to diligently enforce them. A framework is presented for thinking about the various avenues through which banks can pursue growth. BAI Banking Strategies Your trusted source for actionable insights and groundbreaking ideas. Another is to create new … This involve… But that tide is changing. The sold, insured, and guaranteed loans that your bank or credit union maintains are under more scrutiny than ever before. For example, earlier and more frequent outreach, via the debtor’s preferred method (email, SMS, voice, or USPS) helps increase net income by reducing delinquencies, preventing some loan charge-offs, and lowering operating costs. Lack of the right sales process and lack of the right predictive analytics that target the right customer. ARM-Pro™ debt collection software enables community banks to increase net income by improving debtor communications. Overdraft (OD) fees have been severely constrained, and the situation will only worsen as new regulations from the Consumer Financial Protection Bureau (CFPB) further limit this important source of revenue. Finding topline revenue growth is the core issue facing the industry, and this begs for new pathways to success. That translates into fewer natural sales opportunities. As an example, a large regional bank that we know used data analytics and market research to successfully restructure demand deposit account pricing, resulting in a net increase of over $60 million in revenue. There are multiple ways to monetize data. It makes them more efficient to operate, but also means they lose the marketing “billboard” impact of a large facility. One powerful tool to enhance value is to identify account “twins” and consolidate them into a single, higher value relationship. CARM-Pro™ debt collection and recovery technology by IBS is the sought-after solution for banks and credit unions seeking better banking strategies for growth. Sales effectiveness is not just a function of knowledge, but also of discipline and coaching. Local search engine optimization (SEO) ensures prospects will find you online. However, direct mail is increasingly less efficient as customers communicate by text and email. This proven software’s comprehensive features empower financial institutions to grow their loan portfolio, increase income, and reduce risk. These prospects are “findable” in that targeting strategies can locate prospects with a high potential for consolidation. Most bankers understand that excellence in operational process is best achieved by consistency. Sales effectiveness is not just a function of knowledge, but also of discipline and coaching. As one C-level banker stated in response to our recent industry survey, “What we’re doing now isn’t working anymore; we have to take a different approach.”. With CARM-Pro™ you can now “soften” your credit standards, open a much larger market, and allow your bank to successfully manage credit risk with high end collection system technology. 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