2022 is looking to be an unbridled time in the banking industry. Many indicators are demonstrating that banks are facing a time of considerable change. Historical fee-based income opportunities are going away, resulting in millions of dollars lost in annual fee revenue. The Fed is most likely going to raise interest rates. And the trickle of banks shunning overdraft fees has become a flood, according to American Banker.

Data shows that retail bank customers are more than twice as likely to switch banks if they’ve been charged a fee of any kind over the last three months versus customers who have not been charged any fees. Source

The trend toward fee reduction in the banking industry may be “the tipping point when retail banks successfully averted the threat of disruption” from fintechs “by putting their customers’ needs ahead of short-term revenue.” Source

Even though banks are facing mounting pressure to identify new ways to replace lost income, there is good news for forward-thinking banks that put customer retention and financial health at the forefront of their priorities. New data revealed  in the J.D. Power Financial Health and Advice Program shows that 81 percent of retail bank customers say they feel strongly that banks are in a position to help them improve their overall financial health.

Within the banking landscape, there are significant opportunities to grow non-interest income outside of fees through investments and insurance.  Insurance serves as a foundational component of addressing customers’ overall financial well-being picture. However, insurance is a heavily regulated industry, so having an experienced partner to help banks source and provide the solutions to their customers is an important component.

Many banks find that working with an expert in marketing insurance is the simplest and most cost-beneficial way to increase engagement with existing customers while simultaneously growing non-interest income.

Two important aspects to consider are trust and engagement with your customers. Both can happen by providing certain solutions and products such as insurance, which can have a positive and meaningful impact to your customers’ financial well-being. If a bank does not offer insurance, many of its customers will go elsewhere, meaning the bank loses out on an opportunity to bolster retention.

Franklin Madison is one of the leading providers of insurance to financial institutions. With little effort or resources, banks work with Franklin Madison to increase their non-interest income while providing customers with access to much needed insurance coverage.  Not only does insurance help customers protect and improve their financial well-being but helps improve overall customer retention. 

Franklin Madison is comprised of insurance industry experts and marketing specialists. For over 50 years, we’ve helped forward-thinking banks bring new levels of protection and peace of mind to their customers.

Franklin Madison’s diverse suite of consumer insurance programs – supported by comprehensive, data-driven marketing strategies – helps banks connect their customers with insurance products that provide peace of mind they need.

The Smarter Marketing approach:

Instead of mass marketing products, Franklin Madison offers a more strategic approach – Smarter Marketing. With dynamic, multi-channel campaigns that use sophisticated testing and data analytics, Franklin Madison optimizes its process to produce stronger results.

These are the 5 Steps to Smarter Marketing: 

  1. Start with a robust suite of relevant insurance products from trusted carriers.
  2. Harness the power of data to ensure the right marketing message and products are delivered through the right channel at the precise time when customers are most likely to respond. 
  3. Develop simple, straightforward creatives that educate consumers about how those products offer them financial well-being.
  4. Present the bank brand to elevate those products and build on their existing brand loyalty.
  5. Capture the response data to inform and refresh future creative messaging.

This data-driven process produces immediate results that allows banks to confidently make decisions that strengthen their relationships with customers.

Learn more about how Franklin Madison can help you grow your business by offering the insurance products customers want. Visit franklin-madison.com and download our free report (no contact information required) to learn what motivates customers to purchase insurance from their financial institution.