Banking on New Revenue? How the Right ID Protection Partnership Can Help
The FDIC recently released impressive figures in their Q1 2021 report of U.S. bank performance.
Aggregated net income for financial institutions was $76.8 billion in the first quarter of 2021 — a 315.3 percent increase from the year prior. The improvement was largely driven by negative credit costs.
Community banks, representing 91 percent of insured institutions, reported year-over-year quarterly net income growth of $3.7 billion. Nearly three-quarters of all community banks (74 percent) reported higher net income from the year-ago quarter.
As reported by Nasdaq.com, banks’ earnings were driven by a rise in non-interest income, a fall in operating expenses, and negative provisions. Additionally, an increase in business activity and consumer spending, along with a higher deposit balance, offered some support. However, as Nasdaq.com indicates, low rates and muted loan demand were major headwinds.
To maintain this impressive growth, banks need to seek out new revenue paths.
Exploring New Non-Interest Revenue to Stay Competitive
A drive to diversify products and grow revenue streams is top of mind for many financial institutions. And, when looking to bridge new product portfolios, many banks and credit unions are turning to identity theft protection products for non-interest revenue growth. It offers a cohesive fit with existing products, plus with the rise in data breaches, fraud, and identity theft — demand has hit a historic high.
After all, more than 33 percent of U.S. adults have experienced an identity crime, which is more than twice the global average. That is nothing short of alarming.
When banks and credit unions take a more proactive approach to these crimes, it fosters a unique account holder bond. Given the right tools, knowledge of account holder expectations, and a true understanding of organizational goals, success with these in-demand initiatives can create unexpected sources of revenue and engagement. That’s what you can expect from a partner in identity protection.
Consumers are already buying identity protection. According to a 2021 Security.org study, in 2022, the identity monitoring industry is poised to increase significantly by an estimated $4.1 billion in revenue. According to the study, 20 percent of Americans say they expect to purchase identity theft protection in the next year.
With Sontiq’s exclusive ability to integrate ID protection into the FI’s digital offerings, the customer experience can become more streamlined, powerful, and confidence-instilling than ever. Consumers finally receive the personalized advice that everyone craves — based on their specific breach history. This is a bold contrast to the ill-fitting one-size-fits-none suggestions that cause consumers to freeze in the face of ever-increasing threats. And most importantly, the personalized prescription of action steps will link directly to ROI-creating tools most FI have already invested in, including two-factor authentication, alerts, or card controls. All of this exists in a calming CX that makes it easier than ever for individuals to simply click a button to turn on cost-saving account protections.
The Partner Difference
Identity protection is far more than a one-and-done initiative. It requires strategy and expert guidance to both streamline and monetize.
Fraud and identity protection partnerships have been Sontiq’s specialty since our inception in 2001. We work to understand your goals and have developed proven systems to help you achieve them. Driving revenue is one of the top goals today, so let’s break down the partner difference to find where the make-or-break moments lie in an identity protection program rollout.
Understand Your Goals
Your goals lead the way. Whether you’re looking to drive revenue, encourage account holder engagement, or reach a new demographic, the processes behind certain goals are very different.
There are two vital aspects to consider when solidifying your goals: your organization and your account holders.
Your brand, culture, and current initiatives play a major role in reaching your goals. It’s key to identify how your account holders view your organization, and how identity protection can work as a cohesive element of your existing products. Equally important is taking the time to understand your current account holder base. Their demographics play a vital role in the type of identity protection they’re seeking.
Reaching your goals is rarely cut and dry. By bringing on a team of experts, you can more effectively achieve them — but sometimes that means getting a little out of the box.
Choose the Right Program
Stand alone, enhancement, or incentive — your program strategy plays a vital role in overall success.
One partner we worked with was challenged by the high costs associated with paper bank statements. They used Sontiq’s low-cost, high-value products as an incentive to drive account holders to e-statements. The migration to paperless drastically cut overhead and ultimately boosted revenue.
While their goal was to drive revenue, it was in a far-from-standard approach. With Sontiq’s expert guidance, they achieved greater success than with a traditional rollout.
Find the Right Products
To drive revenue with identity theft protection, selecting the right product is key. At Sontiq, we offer award-winning identity protection products for consumers and small businesses. From proactive security tools, advanced monitoring to world-class restoration services — our products can be tailored to create a comprehensive protection program that fits your needs and budget.
Consumers favor identity protection products from financial institutions far more than any other source. Financial institutions have the highest rate of long-term identity protection users. They far outpace the abysmal 8 percent renewal rate of complimentary post-breach services.
This appeal is driven by consumers wanting to have a one-stop shop for all of their financial wellbeing needs, as well as the pre-existing level of trust account holders have with their bank or credit union.
At Sontiq, we act as an extension of your brand and ensure your account holders are taken care of with world-class support and robust products that safeguard their good name.
Consumers are breached about twice a year and financial institutions bear the brunt of much of the associated expense. Learn how Sontiq’s BreachIQ™ protects the financial health of consumers and financial providers. Learn more about BreachIQ.
Support Shouldn’t End After Rollout
Our Client Services team continuously supports each Sontiq partnership. They manage partner programs and offer complete transparency through regular analytics and analysis of user engagement. If a question or need arises, you’ll always have a trusted expert by your side.
We’ll also help you promote your program by supporting your marketing efforts, including digital and print collateral as well as a dedicated webpage.
Your goals and performance are periodically reviewed to ensure long-term success and identity new opportunities. It’s a refreshing change from stand-alone identity protection.
Discover What a Real Partnership Delivers
See what the partner difference is all about by scheduling a demo of Sontiq’s awarding-winning services today. Our team will take the time to walk through your goals and layout strategy and program options that can help you reach them.