Why Banks Choose REC-CHEK
Expense Coding today is more difficult and more complex than it used to be. As the interest rate environment continues to put a squeeze on net interest income, banks are continually being forced to create or find non-interest income solutions in order to reach their ROA goals. Some solutions have presented themselves, like the recent run of low mortgage rates, which has caused a tremendous, though non-sustainable, boost in revenue. Others have focused on not-so-customer-friendly solutions of charging overdraft fees to consumers who demonstrate an inability to manage their personal checking accounts. Even "Free checking" programs, created to boost low cost deposits have somewhat run their course, as the stock market begins to cycle money back into investments.
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What Can Banks Do Now?
Research shows that the bank's most fertile ground is to focus on the local small business owner. When business owners are asked where they bank, inevitably they answer with the name of the bank where they have their commercial checking account. In a world where cross selling additional services to small business owners is critical, gaining that business owner's checking account is job one. That's why banks are focusing on offering more than just checking when opening new business accounts. Today's leading bankers are focused on offering a bundle of mission critical services for small business owners. These offerings are so strong, in fact, that once on the program, the bank becomes so ingrained in the business operation that it becomes difficult for the business owner to change accounts.
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Why Bundle Services? Why Now?
The concept of bundled services, or packages, has existed in banking for years. Traditionally the programs have been called club checking and have primarily been offered to retail customers. Club accounts have not been offered on commercial accounts for two reasons. First, it was once believed there were not enough businesses to make the small fees associated with the program worth pursuing, and secondly, the benefits of the services for those in the club checking program were largely targeted to individuals. As small business owners leave a larger amount of core deposits at the bank, and as banks focus on them as the most fertile ground for growing revenue, packaging for business accounts makes sense. Even a small number of businesses using REC-CHEK Expense Coding can be a real boost to the financial performance of the bank, and more important, a boost to the financial success of the business owners as well.
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Why It Works
Rec-Chek Expense Coding will help your bank’s customers keep track of important financial information without requiring them to do anything but write a code on the check or deposit slip. There are special, patented checks available for use with Rec-Chek Expense Coding that have a designated box where the code can be entered. For a small fee per month, the customer will get a valuable report that provides a clear picture of current and year-to-date financial status.
Bank employees will like the Rec-Chek program, too, because it requires very little effort to get the customers’ bank statements to the Rec-Chek Service Bureau, because they can be sent electronically.
Your bank will secure a long-term satisfied customer, and a new monthly stream of recurring non-interest income. This is a win -win arrangement for the bank and the business or personal account!
At Rec-Chek, we can help you grow your bank.
Contact us today!
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