Why Your Regional Bank Needs a Commercial Credit Program

If Your Bank Doesn’t Have a Commercial Credit Program, It Could Be Losing Revenue. Here’s Why.

Like many banking leaders today, you may be grappling with the aftermath of this year’s banking crisis and rising interest rates and wondering, “Are regional banks safe?” You might also be actively thinking about how to navigate these economic headwinds.

If this describes your situation, offering commercial credit cards to local businesses can be a great solution. This strategy has many advantages, such as strengthening customer relationships, boosting revenue, and helping businesses manage their finances better. By tailoring credit card solutions to meet the specific needs of local businesses, your bank can play a crucial role in your community while enhancing its own financial success.

Why Provide Commercial Card Solutions to Local Businesses?

Representing the source of almost one-third of small business lending, regional banks are critical drivers of economic growth. Local businesses look to lenders like your bank to fund new products and initiatives. Here are the three main benefits of providing a commercial credit card program for local businesses:

Commercial credit card programs are profitable.

Your bank can earn interchange revenue from card transactions. These interchange rates are generally higher for commercial cards than consumer ones, depending on factors such as purchase category and type of transaction. So, if your bank does not currently have a commercial credit card program, it is losing potential revenue every day.

Commercial credit card programs improve relationships.

Providing a full suite of products can have a big impact. If your bank can identify and offer your clients’ preferred features while delivering an intuitive and seamless experience, research shows that about two-thirds of customers would significantly expand their relationship with your financial institution.

Commercial credit card programs promote growth.

Commercial credit solutions open the door to cross-selling other products and services. They deepen relationships with your corporate banking clients, priming them to consider other products your bank offers (in turn, this can increase revenue in the long term, as mentioned above). Your bank can eventually expand its relationship with local businesses into other banking and commercial lending services, which can be extremely profitable.

Local businesses benefit as well. By broadening the relationships with regional banks, local businesses should experience better service. Most importantly, they can get higher lines of credit or improved terms, as the issuing banks will have fuller views of the companies’ operations and finances. It is a win for both sides.

i2c Can Help Regional Banks Create Successful Credit Card Programs

If creating your own commercial credit card issuance program sounds like a win for your bank, it is time to get started. However, the process can be complicated, and finding an experienced partner is important. Here are just some of the reasons why i2c could be the ideal partner for launching your program:

• Speed. Every day added between now and your program rollout is lost revenue, so why wait? Because of i2c’s comprehensive and tested suite of products, you can plan to launch in weeks instead of months.
• Flexibility. Give your clients greater choice and encourage credit card use with revolving and installment lending products. Additionally, i2c offers a Buy Now, Pay Later solution to better meet your clients’ needs.
• Seamless customer communication. Personalized, real-time, and event-driven customer communication ensures clients receive offers relevant to their businesses and needs.
• Personalized incentives. Your clients want a bespoke credit experience, and with i2c’s help, you can offer it. Choose from reward programs, such as cashback, points, miles, statement credit, merchandise, and more. We can even issue coupons in real-time, not just at the point of sale.
• Unique mobile experiences. Mobile banking is a reality nowadays, and your clients expect a rich, immersive, intuitive digital dashboard to manage their credit products. With i2c’s white-label mobile banking app or APIs connected to your existing app, you can offer a branded digital experience that will keep your clients engaged and happy.
• Simple program management. Your business clients can manage their cards directly by opening and closing accounts for individual employees, setting card controls, and accessing reporting without involving your bank. This greatly reduces your operational costs, as you can simply set the general product parameters and the overall credit limit for the client’s company and then let them manage the individual accounts.
• Access to virtual cards. Your clients do not need a physical credit card anymore. The future is virtual, and i2c can help you offer it to them. We offer features like mobile wallet payment provisioning, support for multiple currencies, support for all authentication methods, and more.

Would a partnership with i2c be a good fit for your bank? Get started today  with a conversation about your regional bank’s needs and get moving toward an online commercial credit program that serves your clients and drives your bank’s bottom line.

Friendly Asked Questions – FAQs

How to increase bank revenue?

Offering commercial credit card programs can significantly increase bank revenue by earning interchange revenue from card transactions. These programs provide a profitable avenue for banks to tap into, contributing to their financial success.

Are regional banks safe?

Regional banks play a critical role in driving economic growth and supporting local businesses. While challenges such as economic headwinds may arise, offering commercial credit card programs can bolster the financial stability of regional banks, contributing to their safety and resilience in the banking landscape.

How to improve customer relationships in banking?

Improving customer relationships in banking involves providing a full suite of products tailored to meet clients’ needs, delivering intuitive and seamless experiences, and offering personalized incentives such as cashback, points, and miles. These efforts strengthen customer loyalty and satisfaction, driving expansion of the relationship with the financial institution.