5 Reasons Financial Industry Trends Shouldn’t Keep You Up At Night

5 reasons financial industry trends shouldn’t keep you up at night

At first glance, it may appear that community financial institutions (CFIs) have a lot to worry about. After all, the last two decades have brought about significant changes that make generating non-interest income (NII) and deposit growth an uphill battle — and may as well be equated to things that go bump in the night:

  • Rapid technology innovations have made it hard for smaller banks to compete against what the big banks are offering.
  • Frequently changing regulations have forced CFIs to dedicate expensive resources toward keeping up with the latest requirements.
  • Megabanks command massive marketing budgets, so their reach has vastly surpassed that of CFIs who rely on their institutions’ resources alone.

With the advantage of far greater resources, megabanks have gobbled up approximately 80% of the deposit market share as of 2016 — that’s almost triple what it was twenty years ago.1

To survive, CFIs need to attract younger, highly engaged consumers that generate substantial NII. Luckily, their reputation for excellent service has taken them part of the way there.

Enlightening data reveals there’s no need to be afraid of the dark.

Research indicates people would prefer to bank with a community financial institution. 78% of consumers say it’s important to bank locally, and 58% of megabank customers believe their bank does not have their best interest at heart.At the same time, 63% of megabank customers have never considered switching to a community institution.2

So consumers want to bank local, but don’t. What’s the disconnect?

They don’t believe CFIs have the innovative products and technology they can get at the megabanks. And that’s where a partnership with Kasasa comes in.

Let someone else worry about the wolves at the door.

Despite how it may seem at times, you’re not alone in the dark. As a Kasasa CFI, you have access to an array of products, services, and resources that fight the megabanks’ advantage. Here are a just a few reasons you’re able to catch more Z’s than CFIs who choose to go it alone:

  1. Innovative products and technology that meet account holder needs
    Kasasa’s branded suite of reward checking accounts attracts younger, more profitable consumers. 67% of Millennials — more than any other age group — said they cared about rewards2 when researching checking accounts, which is likely one reason Kasasa account holders are on average 10 years younger than standard free checking account holders.3
  1. World-class marketing and websites that bring consumers to your door
    Because consumers shop product first — and they start their search online — the power of a national brand combined with a search engine optimized website amplifies messaging and exponentially expands your marketing budget’s reach.
  1. Comprehensive training that fortifies your front line
    Kasasa Retail Experience Development professionals are experts at turning service representatives into selling and cross-selling machines. They apply proven methods for optimal results.
  1. Dedicated resources who provide custom consultation
    Client Directors and Marketing Project Managers utilize data and analytics from hundreds of peer community financial institutions to offer tailored marketing strategy guidance to meet your institution’s unique goals.
  1. Superior support to meet regulatory requirements
    Our compliance officers are bulldogs when it comes to keeping on top of the latest regulations and rolling out necessary updates. They’re constantly on their toes, so you can let go of that stress and just stroll.

The only thing under the bed is a heck of a lot of support.

Kasasa is proven to attract younger, more profitable account holders. Compared to standard free checking, Kasasa drives:3

  • 45% lift in non-interest income
  • 2x annual profit per account
  • 50% lift in account opening

With results like that, we’re confident a partnership with us gives you good reason to enjoy a more restful night’s sleep. Let us do the worrying — and you do the slumbering.

Want to learn more about to leverage your partnership with Kasasa to take profitability to even greater heights? Contact us or read past blog posts about the power of co-opetition.

 

 

1FDIC, NCUA
2Consumer Banking Insights Study,” Kasasa & Harris Poll, 2015.
3Kasasa analytics.

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