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Community Financial Institutions' Biggest Opportunity for Growth

This is the second in a series of three posts that will relay the latest findings from our Kasasa Expert Exchange — a panel of professionals from our partner community banks and credit unions who share industry insights by completing short, relevant surveys.

Read more of our findings in the first and third posts in the series.

In the previous post, our experts told us their biggest obstacle to growth. Now we’ll dive into what they consider their biggest opportunity.

 

Consumer Loans Are King

 

We asked our experts which areas they expect to see the most revenue growth in the next 1 to 3 years. Their most frequent answers were lending-focused, with nearly half of respondents citing consumer lending (48%), followed closely by commercial lending (45%) and residential mortgages (38%).

Expected Areas of Growth

 

Millennials Are On Everyone’s Wish List

 

Exactly half of respondents say rising young professionals are their greatest potential for growth. This makes sense — after all, Millennials are the next generation of borrowers.

Other demographics trailed far behind, as illustrated in the graph below.

Demographics Predicted to Drive Growth

 

Knowledge Is Power — And Equals Increased Profits

 

Kasasa partners are privy to industry insights derived from hundreds of CFIs nationwide and continually monitored by our team of expert analysts. The survey indicated the top two uses for these insights are consumer-focused. More specifically, panelists said they primarily leverage insights to boost cross-sales (40%) and consumer acquisition (33%).

How CFIs Use Data & Insights

Applying the data toward cross-selling current account holders and gaining new ones is an excellent strategy for growth. After all, having visibility into how consumers behave makes it easier to market to them at the moment they’re most likely to buy.

 

We’re On The Same Side Of The Balance Sheet

The survey responses indicate Kasasa CFIs are focused on driving revenue by implementing effective consumer-centric retail strategies. That’s great news, because it’s in complete alignment with our own plans for 2016.

Our commitment to these strategies is one reason we launched Share Kasasa™ earlier this year. Share Kasasa is a digital refer-a-friend program that’s automated, mobile friendly, gamer-resistant, and integrates with most popular social platforms.

44% of people look first to friends and family for recommendations when switching financial institutions.* Share Kasasa is a tool capable of turning your current account base into a highly effective sales force. And it comes free with Kasasa.

Contact your Client Director if you’re interested in hearing more about how Share Kasasa can drive revenue for your institution.

 

*AOL & Oliver Wyman, “Making the Switch: Checking Account Path to Purchase”

Tags: Strategy