The savings account offerings require attention from the bank. Customers keep the money unutilized in the account while the bank has to incur an expenditure for servicing the account.
However, savings accounts can result in additional revenue streams by mining customers and augment the transaction level. Banks can extend their relationship with customers by providing financial services such as healthcare and retirement policies.
The savings account is the first point of connection between the bank and its customers. The simple savings account provides an opportunity for cross-selling and upselling the related products.
A bank can categorize its customers based on the savings account and achieve the benefits of financial convergence. The savings account can be augmented with value added features and incorporated into the financial products.
The cost of securing customers of healthcare and retirement policies is comparatively lesser than communicating with the customer directly.
The bank is in a better position to mine customers on the basis of an insight into transaction behavior. This enables the bank to comprehend the specific requirements of the customers and facilitate targeted campaigns.
Banks can facilitate new revenue channels by incorporating various financial products into a Smart Saver account.
The benefits of a Smart Saver Account are:
- Realizes the competencies of customers.
- Decreases the sales effort to sell the financial products.
- Maps customers during an account opening.
- Services the financial requirements of the customers.
A bank can boost its “vanilla savings account” into a “smart saver account”, thereby accomplishing the two objectives of mapping existing customers and providing a gamut of financial products.
The augmented savings account creates various revenue channels at less cost for the bank. The Smart Saver Account simplifies the process of marketing pertaining products to customers. It acts as a single point of financial access for customers for the products/services.
A Smart Saver Account installs sub-accounts – healthcare/childcare/retirement/savings account. Smart Saver Account holders can maintain a specific amount in the sub-accounts or make regular payments.
It may be mandatory for a certain quarterly balance to be kept in the sub-accounts. Distinct sub-accounts provide a fluctuating interest rate which would be measured to facilitate business growth in the financial sector.
The interest accrued at the end of the year can be used for various reasons:
- Interest from the healthcare account can be channelized to a healthcare policy.
- Interest from the childcare account can be used for a childcare policy.
- Interest from the retirement account can be utilized for a retirement policy.
If a Smart Saver customer doesn’t utilize the interest in the sub-accounts with regard to a financial instrument, it can be removed/maintained in the account to create policies with supplementary benefits.
Volatile interest rates enhance the net interest rate on a Smart Saver Account in comparison to a vanilla savings account.
Banks can secure new accounts and retain the existing customers by interfacing innovative product development and technology.
They can leverage the customer and transactional data efficiently to provide service to the customers via the savings account.
Banks can enhance the customer base by providing the Smart Saver Account – a customized savings account to cater to customers’ requirements at various phases.