Market Rates Insights, a financial services intelligence firm in San Anselmo, Calif., said its latest research indicates that consumers value service bundles more than individual services, and that they would be willing to pay a premium for bundled services.
The 150-page study, Growth and Revenue Potential for Emerging Financial Services, reveals which combination of services command higher fees because of increased consumer demand.
Some of the study’s preliminary findings show that identity theft alerts (70.8%), credit score reporting (71.4%), payment protection services (64.6%) and same-day bill pay (58.7%) ranked with the highest in demand among consumers.
Other services such as elder care services, prepaid reloadable cards and location-based coupons showed the greatest growth potential with consumers, Markets Rates Insights said its research found.
The study examines 13 emerging financial services and assesses consumer attitudes about the importance and value of each service, segmented by banks and credit unions as well as demographic groups.
Market Rates Insights said that in the foreseeable future deposit rates will remain flat and loan demand will stay soft, which means financial institutions will have to rely in fee revenues for income growth.
But to convert services from “free to fee,” banks and credit unions will have to identify new services that consumers want and are willing to pay for.
Market Rates Insights said its new study shows banks and credit unions how to use service fees to expand profits and penetration with both existing and new customers.