Mike Branton, Managing Partner
The Financial Institution (FI) where you have your primary checking account is the one you typically call "my bank" or "my credit union". Such is the relationship power of the consumer checking product and a customer.
However, this power is being challenged on two fronts: one, making checking more financially productive for the FI and, two staying modern and relevant for today's consumer. According to proprietary research from StrategyCorps, about 35 percent of checking accounts cost FIs more to maintain than they earn in revenue. The reality is most FIs can’t discern which accounts are costing them money and which ones aren't. Plus, they have no product solution that's engaging enough to improve the financial contribution or better retain the financially productive ones.
StrategyCorps helps FIs overcome these challenges with its two linked solutions, CheckingScore and BaZing. CheckingScore is an analytical tool that ranks and segments every single consumer checking account an FI has (on a householded basis) by the revenue generated by those householded relationships. This provides a monetization and ranking of each individual checking account's financial contribution.
Unlike other analytical tools, CheckingScore provides actionable analytics that tie neatly to bottom line performance improvement, which financial institution executives can clearly follow and understand", notes Mike Branton, Managing Partner, StrategyCorps.
This empirical analysis now forms the foundation in which to modernize the checking products by incorporating the customizable mobile rewards solution, BaZing. "Today's consumers want more than undifferentiated, basic checking accounts with just traditional benefits. They want benefits that are more relevant to their mobile lifestyle," added Branton. "That's where BaZing fits in."
Our value to financial institutions is optimizing the financial performance of their retail checking products while increasing the consumer appeal of those products
BaZing's white label app offers checking benefits that do this, such as the largest private, local merchant discount program in the U.S. with nearly 350,000 participating local merchant deals. Each participating merchant is "geofenced" to have a push notification of the discount delivered right to the user's mobile phone only when they are in close proximity to that merchant. And the cost of the merchant to participate is only the cost of the redeemed discount, no upfront investment.
A $6 billion asset client bank in Texas used CheckingScore and BaZing to standardize, simplify and upgrade their checking line-up after a number of mergers/ acquisitions resulted in hundreds of grandfathered and commonplace checking products. StrategyCorps used the CheckingScore results to reduce the number of account types. BaZing was then tailor made to fit into this line-up to better connect with their customers. The financial results of doing so were increased revenue of over $2 million annually from new deposits, deeper relationships and new recurring customer-friendly income.
“Our value to FIs revolves around a common scenario— the need to optimize the financial performance of the checking line-up by identifying which specific accounts are not productive and which ones are, and then modernizing that line-up with mobile rewards that fix and grow the unproductive ones, protect and grow the productive ones, and providing an appealing, differentiated line-up to attract new customers,” shares Branton.
From a future roadmap perspective, StrategyCorps’ mission is focused on continuing to provide what consumers are demanding that can be effectively delivered as a checking benefit with a great user experience, while also finding more insightful ways to analyze checking data to get this done as financially additive as possible.