16 Sep You Get What You Charge For
The credit union business is competitive and it’s changing more rapidly now than ever before. In order to make smart decisions, you need to understand what your members value most – and that’s no longer free checking.
Free checking used to be an affordable marketing strategy. However, it peaked in 2009 when congress changed the rules resulting in greatly reduced overdraft fees members and interchange fees from merchants. As a result, the percentage of financial institutions offering free checking has plummeted and average monthly service fees are increasing.
Providing Value is Key
Members are willing to pay for value – in fact, adding a valued benefit or service to a share draft account not only increases the amount your members are willing to pay, but it also improves the quality of your relationships. Allow us to show you how!
The “free-to-fee” trend is quickly growing, and it’s time for your financial institution to take advantage of the latest knowledge and tools for increasing revenues and enhancing loyalty.
We make it simple! Combine great financial benefits with some of the most appreciated value-added enhancement services:
1. It’s Compelling – Helping your members save money on cell phone, accidental death insurance, healthcare related and travel and entertainment costs is meaningful. Protect your members in a world where every two seconds another American becomes a victim of identity fraud. In 2014, 12.7 million consumers suffered identity fraud – costing $16 billion dollars. Helping your members protect their identities protects your financial institution.
2. It’s Valuable – Deliver value to your members with a wide range of benefits including accidental death coverage, cell phone insurance, cash back rewards, identity theft protection service that includes access to a dedicated fraud specialist and expense reimbursement in the event they suffer an identity theft incident, credit file monitoring and credit reports. Other benefits can include a variety of ways to save on travel and entertainment and health care. Comprehensive and affordable!
3. It’s profitable – Credit Unions moving members to fee-based accounts including valued benefits are reporting increased revenues and more profitable relationships – from $12 to over $60 per account per year.
To make the most of your move to fee-based accounts, you need a knowledgeable partner with and intimate understanding of successful strategies. Member Service has over 40 years of experience to make your transition seamless and to help you maximize profitability.