Increasing non-interest income while staying true to your financial institution’s mission can be tricky. Income is obviously necessary to run a successful business, but lenders sometimes feel that seeking out income and fees feels too pushy and runs contrary to their service missions. Some lenders also fear that adding or increasing fees and other charges may drive borrowers to competitors.
These are legitimate concerns, but think about it—without income, your institution would cease to exist and you would be unable to provide borrowers with any services at all! Like any other business, it’s fair for financial institutions to charge for services that offer convenience and time savings.
Generating non-interest income for your financial institution ultimately benefits borrowers by defraying costs, decreasing loan rates, and increasing savings rates. One way to do so is by introducing new products that complement your current offerings and bring value to your new and existing consumer base. In this blog post, we’ll discuss several strategies for increasing non-interest income for your financial institution.
Fees for Premium Services
Businesses often allow customers to use a limited version of a service for free, then upcharge for a premium service; your financial institution can follow suit. For example, perhaps you could offer multiple service levels of identity theft protection, with a slight increase in price for each level. Consumers decide which level they find most valuable and are charged accordingly.
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