3 Strategies for Success During Financial Uncertainty
By Steve Swanston, Executive Vice President — Revenue / Sales / Marketing
Being there for your account holders during every stage of their financial life is essential. But as the saying goes, you must first put on your oxygen mask before assisting others. By prioritizing the financial stability of your community bank or credit union, you’ll be better positioned to support your account holders when they need a helping hand.
Here are three ways to boost deposits, engagement and revenue without straining your team or budget.
- Winning acquisition and engagement strategies
The most fundamental revenue source for credit unions and community banks is checking deposit growth. But it’s expensive to compete against the big banks with their cash offers and other incentives for swiping — or is it?
With the right approach, a comprehensive and automated strategy to win accounts away from the competition, gain digital referrals, increase deposits, keep engagement high and earn a steady stream of revenue is possible. Teaming up with an experienced industry partner that offers these turnkey solutions — not to mention a guaranteed ROI — sets you on a promising path to deposit growth.
Make your resources work for you with a 3-to-1 ROI (or greater) on digital acquisition and a 2-to-1 ROI (or greater) on digital engagement.
- Low-risk, fair liquidity services
Unfortunately, many account holders struggle to make ends meet or panic when unexpected expenses arise. Offering access to cash is critical, and it doesn’t have to come with an increased risk of charge-offs or require additional human resources.
The key is to take a “fairness first” approach. That means determining liquidity limits based on the account holder’s ability to repay, using alternative data like deposit and transaction history. A managed limit method reduces financial risk for both parties and extends eligibility to more consumers who may need the service but don’t currently have high traditional credit scores.
Offer a fair overdraft service where 99.3% of overdraft events with limits greater than zero are repaid and a 100% automated digital consumer loan solution that won’t tax your resources.
- Automated, effortless small business microloans
Most of us can think of a neighborhood business that had to shut its doors permanently for financial reasons. When small business owners’ budgets are stretched thin, access to immediate cash could be the difference between making it through a tough month and closing up shop for good.
By providing easy, small-dollar, short-term loans, you can support community businesses and create a new revenue stream to help you meet growth objectives. Automating the underwriting process and basing the loan on the borrower’s ability to repay can achieve this without affecting your operating expenses.
Support your business account holders with 24/7 access to fully automated digital microloans that require no loan officers or support staff.
The Velocity difference
With our data-driven technology, proven algorithms, best-in-class training and a team of true experts, Velocity Solutions is well-positioned to be your long-term partner, no matter what economic turmoil or industry challenges come. We’re here to offer fair, innovative, compliant and holistic solutions that make sense for your financial institution AND your account holders as we support your growth using powerful technology, automation, professional training and deep industry expertise.
Be more resilient and prepared to help your account holders during financial uncertainty — contact Velocity Solutions today.
As seen on CU Insight