How Banks Win the Payments Race: Using a Bank’s Business Designation as the Path to Long-Term Success
Too many banks, and companies in general, are hyper-focused on traditional growth activities – acquiring more customers, expanding sales channels and product offerings, when they are not ready to successfully execute. The ROIG Group examined 397 U.S.-based publicly traded banks using 2021 data, including net interest income and non-interest income, stock pricing, efficiency ratio, equity capital, and equity value, to name a few, and classified them into one of four designations based on the results – Revive, Optimize, Incubate, or Grow. Only banks in the Grow category currently have the indicators in place to consider growing or expanding their business beyond organic growth efforts. Revive and Optimize companies do not have the same options for growth and expansive growth options are limited because they must address other inherent challenges first.
This designation research has emerged just in time to help answer a highly debated question: will banks be able to keep up with fintechs in the payments race? Banks have many inherent strengths to be competitive in the payments race but they must understand their designation and create a strategy that helps them effectively and efficiently move into the Grow designation.
Download our new eBook, How Banks Win the Payments Race: Using a Bank’s Business Designation as the Path to Long-Term Success, to learn more about the importance of working within the bounds of your business’s current designation to realize long-term success and to come out on top in the payments race.