Market Rates Insight Releases Findings from its New Consumer Study: Growth and Revenue Potential from Emerging Financial Services

New fee optimization study reveals perceived value of new financial services and how to optimize fees with service bundles to generate new revenue.

SAN ANSELMO, Calif. (May 30, 2013) -- Market Rates Insight, Inc., a leader in financial services intelligence for deposits, personal loans, mortgages, and fees, has completed the analysis phase of its latest consumer research and fee optimization study, "Growth and Revenue Potential for Emerging Financial Services." 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. The study findings will be reviewed in a webinar to be hosted by Market Rates Insight on June 18.

This study is the only one of its kind to measure consumer attitudes about banking fees and services and was conducted nationwide to help banks and credit unions better understand consumers and identify new revenue sources from fee-based services and service bundles. Banks and credit unions are facing new challenges from non-banking competitors offering banking services, and they need to identify new ways to attract and keep customers. This study provides empirical data on the importance and value of emerging services to help financial institutions create service offerings that attract and retain customers while building revenue.

Some of the preliminary findings reveal that identity theft alerts (70.8%), credit score reporting (71.4%), payment protection services (64.6%), and same-day bill pay (58.7%) currently ranked with the highest consumer demand. Other services such as eldercare services, prepaid reloadable cards, and location-based coupons showed the greatest growth potential with consumers.

This study also reveals for the first time how consumers value certain combinations of services. Consumers typically value service bundles more than individual services, and will pay a premium for bundled services. The study reveals which combination of services command higher fees because of increased consumer demand.

"For the foreseeable future deposit rates will remain flat and loan demand will stay soft, so 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. Our new study shows banks and credit unions how to use service fees to expand profits and penetration with both existing and new customers."

The "Growth and Revenue Potential lf Emerging Financial Services" study is being offered in both an Essential and Premium package. The Essential package includes copies of the complete 150-page study and a competitive survey of 10 financial institutions and their adoption of the 13 emerging financial services. The Premium package includes the survey and competitive data, as well as an optimization analysis of service bundles, an online optimization consultation, copies of the Emerging Trend Spotlight quarterly update, and access to trend analysis and service integration online seminars.

For more information about the study or the upcoming webinar, contact Market Rates Insight at info@marketratesinsight.com.

About Market Rates Insight
For more than two decades, Market Rates Insight (MRI) has been helping clients price with precision by providing banks, thrifts, credit unions, and other financial institutions with comprehensive market intelligence on deposits, loans, and fees. MRI's products include web-enabled, customizable report programming, proprietary product research tools, searchable databases, market alerts, and online dashboards that aggregate key client data to provide real-time interactive views on how they rank against their specific competitors. MRI provides advanced toolsets for deposits uses deposit surveys, mortgage and consumer loans, and loan surveys, fees and features pricing in addition to studies, new product alerts, benchmarking and market analyses to give subscribers the intelligence needed to strategically position products, optimize pricing and react to emerging trends.

Market Rates Insight is located in San Anselmo, California. For more information, see http://www.marketratesinsight.com.

Photos available upon request

For additional information contact:
Tom Woolf
Market Rates Insight
(415) 259-5638

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