Pub. 4 2016 Issue 4

Issue 4. 2016 15 of all new checking accounts are actually activated after 90 days of acquisition. 5 So how can banks and credit unions better support customers who want to switch their business to your institution? New Technology Makes Switching Easier In recent years, innovative high-tech applications have revolution- ized the asset-transfer process, cutting the time required for back-of- fice operations significantly and reducing the actual transmission of data to mere minutes. With minimal upfront costs and little IT support generally required, automated bank-switching technology has the potential to grow account activation rates among new and existing customers by easing the cumbersome transfer process and lowering the threat of mistakes along the way. Get account holders active early. The evolution of electronic da- ta-transfer technology also offers banks and credit unions a market- ing tool to attract prospects and promote brand loyalty like never before. A word of caution: Expediting the transfer of assets from one institution to yours is just the first step in a customer’s journey. Your organization’s engagement programmust work hand-in-hand to encourage account holders to activate their checking accounts within the critical first few days. Here’s why: • “Active” account holders are four times more likely than “inactive” customers to identify their new bank or credit union as their prima- ry financial institution (PFI). 6 Proper onboarding practices can help boost checking-account profitability an average of $212 per customer annually and expand cross-sell opportunities. 7 • For financial institutions with onboarding support in place, first- year attrition rates drop to 16.5% for banks and 9.5% for credit unions. 8 • A change of only 1% in retention can more than fund a compre- hensive onboarding program. 9 Increase Bank Revenue through Cross-Selling An efficient automated bank-switch portal via web or mobile device is likely to provide a more positive experience for your customers and, hopefully, earn you their trust. Obtaining PFI status alone will put your company in a more advantageous position to develop long- term revenue streams using cross-sell strategies. Targeting Millennials. Active checking-account customers are more apt to purchase financial products like mortgages, credit cards, auto loans and home equity lines of credit, which help expand profit potential.10 In particular, Generation Y consumers in their late 20s and early 30s present a natural market for the speed and convenience that bank-switching technology provides. One study suggests that one in three millennials “are open to switching banks in the next 90 days.” 11 Online asset-transfer technology may help banks and credit unions: • Acquire more active and profitable accounts • Reduce first-year attrition rates by engaging account holders early • Enhance their status and business potential as primary financial institutions To learn how Harland Clarke can help account holders quickly and securely switch recurring payments and deposits to your financial institution, call 1.800.351.3843, email us at contactHC@harland- clarke.com or visit harlandclarke.com/ClickSWITCH. n 1 consumersunion.org, Trapped at the Bank: Removing Obstacles to Consumer Choice in Banking, May 30, 2012 2 Harland Clarke Marketing Services Industry Database 3 consumersunion.org, Trapped at the Bank: Removing Obstacles to Consumer Choice in Banking, May 30, 2012 4 Aspen Marketing Services, Online Bill Pay Longevity and Lifetime Value Study, 2009 5 BAI, With Onboarding, Cash Management Rules, October 31, 2014 6 Javelin Strategy & Research, Convert “Silent Attrition” into Banking Engagement and Profits, February 2015 7 ibid 8 Harland Clarke, Marketing Services Industry Database, 2011 9 ibid 10 Javelin Strategy & Research, Convert “Silent Attrition” into Banking Engagement and Profits, February 2015 11 ViacomMedia Networks, The Millennial Disruption Index, 2013 An account holder with five automatic bill payments is 95% less likely to switch than those with none. 4