|Profitable account acquisition is one of the financial industry's biggest challenges.
So, how are some banks and credit unions still opening accounts while others are struggling? Top performing financial institutions focus on referrals because they understand that it's not just the number of new accounts that matters. Study after study concludes that referred accounts maintain higher balances, stay longer, and bring in more customers.
Invitation Checking SystemTM is an automated referral strategy developed by Velocity Solutions that generates measurable and profitable results. We have been helping regional and community banks and credit unions increase account openings and account profitability for more than 10 years.
The accounts opened as a result of our Invitation Checking System, or ICS, are highly profitable and have better retention.
Case in point: The average financial institution opens 200-300 accounts per branch annually. Our clients open 33% more accounts than they opened prior to implementing the Invitation Checking System. And in many cases, ICS clients see an even higher percentage.
Just take a look at the results from one of our clients. This client opened more than 100 additional accounts per branch per year; saw more than $300 in annual profit contribution for each new account; and experienced a 21% improvement in retention for referred accounts versus non-referred accounts.
So, why don't all financial institutions implement successful referral-driven account acquisition programs? Because without automation to make it simple and data mining analytics to make it effective, managing a referral program can be very difficult.
Most programs call for manual coupons with manual tracking. There's no reporting, results are ambiguous, and it's extremely hard to tell which accounts are referred versus walk-ins - so you end up paying for all new accounts regardless of the source. With our Invitation Checking System, you only have costs for the referred accounts. There is no additional cost for the ones you would have opened anyway. Costs are further reduced because we can create this increase in openings without any direct mail.
Also, ICS is not a manual process. Through proprietary software and a variety of new techniques that leverage today's methods of communication, the Invitation Checking System automates and simplifies the referral process.
In addition, ICS captures key information for prospects and provides ongoing marketing to these individuals - something no other account acquisition strategy has been able to successfully accomplish.
Our Invitation Checking System's reporting package is the most comprehensive on the market, enabling your financial institution to compare ALL of your new accounts to see the specific incremental profit each account delivers. Actual account balances, fees and attrition can be measured by the type of account and method of acquisition.
As with any Velocity Solutions offering, your financial institution will receive ongoing monthly coaching, training, retail best practices consulting, analysis, and strategic support. Of course, there is no long term commitment, which enables you to test ICS and prove its effectiveness at your financial institution.
This strategy is rapidly being adopted by financial institutions across the country as the fundamental building block for a successful and profitable retail banking strategy. With 5 million accounts under management and more than 100 financial institutions utilizing one or more of our profit solutions, members of your peer group are already seeing the results Velocity Solutions can generate.
The most effective strategy to incrementally grow new checking accounts is through a well-managed referral strategy. Contact Velocity Solutions today and ask about our Invitation Checking System.