If some financial institutions find it difficult to grow profits from their DDA business, it’s probably because of the column of numbers listed here. The typical bank or credit union spends $150 to $200 to acquire a DDA account customer. About 12-15% of those customers will turn over every year, and only 40% of them will be profitable.
But as a recent study by StrategyCorps found, some customers will be extremely profitable, contributing $1,650 on average annually to the institution.
Institutions clearly need to be able to distinguish profitable customers from unprofitable ones as quickly as possible, preferably at account opening. Then they can segment accounts and cross-sell appropriate products and services to maximize profits while minimizing risks and losses.
Performing this type of analysis in real time is beyond the capabilities of many institutions’ account-screening and identity-verification services. But new services, which can be rapidly deployed and integrated into branch operations, are available to help institutions make these critical decisions in real time and with a high degree of confidence.
To learn more about the challenges of growing profitable DDA accounts while minimizing losses, read our new white paper, Profitable Insights from Real-time Data Analytics.