Best ways for financial institutions to generate non–interest income


August 06, 2019

Let’s look at some ways that financial institutions can optimize portfolio revenue growth and attract cardholders.

Card marketing

Promoting your financial institution’s card over others can go a long way in securing cardholder loyalty, but many institutions lack in-house resources or rely on outside agencies that do not understand the nuances of the industry. Card marketing programs typically address low card activation and declining card usage, but few offer a solution as complete as Worldpay’s card marketing program. It's engineered to be an end-to-end campaign solution with access to a comprehensive calendar of promotional offerings and customized campaigns.

Package options are based on annual revenue growth goals and are easy to implement and monitor. And they are effective; most Worldpay debit clients averaged 10.5% growth in year over year transactions and Worldpay credit clients saw 4% growth in year over year purchase active accounts. Overall, both experienced more than twice the growth rate of clients that don't use the program.

Cardholder rewards

As with any business, loyal customers usually translate into higher potential revenue. Cardholders who have more products with your financial institution are usually more loyal and are likely to carry higher balances. An attractive rewards program is the most compelling reason for a consumer to choose one credit card offer over another. However, some cardholder rewards programs fail due to revenue model challenges and enrollment and redemption hurdles that result in low customer adoption rates.

Worldpay’s rewards program is different. The points-based rewards program is designed to be easy to implement and cost-effective to maintain – and features incentives that are attractive to cardholders and easy for them to redeem. Financial institutions can usually customize a program that fits their specific earn ratios, and have access to a branded website, bonus point promotions, integration with FI products, and other valuable features.

ATMs as marketing tools

US consumers conduct billions of transactions a year via ATMs. Many banking and credit union customers are using ATMs more often than visiting their branch or banking online. As a primary banking interface, the ATM is a critical customer touch point. FIs that capitalize on this interaction by offering more than just cash stand to benefit in many ways.

Worldpay’s ATM services elevate this self-service channel from a cash dispenser to a customer relationship tool. In addition to facilitating deposits and withdrawals, it gives financial institutions the ability to offer other services that are usually only provided in a branch such as personalized marketing messages on supplementary products like stamps, gift cards, and merchant offers.

As banks and credit unions face a changing industry, implementing programs that drive non-interest revenue can help improve the bottom line. To find out how Worldpay’s offerings like card marketing, cardholder rewards, and supplementary ATM services can benefit your institution, contact us.