These days, people often look to the internet to search for health related ailments. In fact, Pew Research finds 80% of people say they have searched for a health related topic online, looking mostly for information on a specific disease/problem (63%) or treatment/procedure (47%).
No matter what you look for today on the internet, one area that can pay off for your bank could be international payments. This is one area where, for many years, the biggest banks have captured and retained customers more than community banks. Given how much commerce is handled online, this needs to change and we can help your bank learn how. Doing so can boost customer capture, retention and drive more fees to your bottom line.
According to a recent report from the global consultant firm McKinsey, the next 5Ys will bring a world where many more people and corporate entities will regularly use international payments. Not just large corporations, but also retailers, small- and medium-sized businesses, and individuals will access a range of providers.
Even with increased pricing pressures, new models, and new providers, banks will continue to play an important role in cross-border payments. Here, community banks may actually have a bigger chance to get involved. The report suggests that successful competitors will understand their overseas transaction revenue models, client relationships, upgrade support, explore collaborative solutions, and establish a clear role in the value chain.
Driving profitability in the coming years may include a variety of international payment strategies. Community banks may want to consider expanding offerings to capture this business opportunity. For example, your bank might adopt a focus on supporting foreign business subsidiaries and their local workers and families, or businesses here doing business overseas.
In additional to more vanilla transactions, you might want to seek out niche pricing too. These might be in difficult-to-serve trade corridors or in industries where the payment lets the business exist, such as digital content. Geographical clustering in regions where international payments are active are other potential strategies.
Pricing for relationship and data may also make sense. You will want to consider monetizing the entire relationship with a customer, including accounts, lending, and data--rather than aiming to derive profit margins primarily from international transaction fees.
Banks can use international transactions to defend customer relationships too, using such propositions as international payments that are as fast as domestic ones, with predictable pricing. The more convenient those international transactions can be, the better, of course.
With the availability of international payment services, you are better able to support your customers with their growing businesses. We are definitely here to help on that front. Simply contact us today at 888-966-7444 to learn more.