# How Banks Can Drive Added Value from their Commercial Cards Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-31 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Unlocking Commercial Banking Opportunities with Client Data Meta Description: Unlock the full potential of commercial card programmes with comprehensive client insights. Track key metrics like SPA and ATV to drive profitability and client URL: https://financedigest.com/how-banks-can-drive-added-value-from-their-commercial-cardshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd311017-1-1-1736843325312-compressed.jpg) By **Kyle Ferguson**, CEO Fraedom In order to capitalise fully on the opportunities that lie within the rapidly-expanding commercial banking sector, banks need to get a much more comprehensive picture of and insight into their client’s purchasing patterns and trends. By embracing client data in this way, banks can start to benefit from tracking parameters such as ‘Spend Per Account’ (SPA) and ‘Average Transaction Value’ (ATV) enabling them to create an in-depth ‘DNA’ of each client. This in turn enables them to start to identify potential commercial [card opportunities](https://www.financedigest.com/vive-la-france-cashless-card-opportunities.html "Vive la France: Cashless & Card Opportunities") and ultimately maximise the return on investment they can extract from them and to begin to identify and solve any underlying issues such as high delinquency rates. **Moving up a Level** Of course, [banks already recognise that offering commercial cards to their clients is a valuable service](https://www.financedigest.com/the-future-of-financial-services-how-apis-are-fuelling-the-rapid-rise-of-open-banking.html "The future of financial services – how APIs are fuelling the rapid rise of Open Banking"). By making the payment [process easier and offering added value such as improvements](https://www.financedigest.com/keep-your-head-in-the-cloud-improving-the-order-to-cash-process.html "Keep your head in the cloud: improving the order-to-cash process") to working capital, CFOs can see the clear benefits. For banks, it [means a larger share of expenditure flowing through their service](https://www.financedigest.com/what-does-software-as-a-service-mean-for-healthcare.html "What Does Software As A Service Mean For Healthcare?") rather than via invoicing and as a result, increased revenues. There is more potential in commercial card schemes than simple [end user](https://www.financedigest.com/industrial-magnetrons-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Magnetrons Market Competitive Growth Strategies Based on Type, Applications, End User and Region") convenience, however. Provider banks need to understand that by enhancing the technology used to support these schemes both from the end [user](https://www.financedigest.com/industrial-catalytic-converters-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Catalytic Converters Market Competitive Growth Strategies Based on Type, Applications, End User and Region") and back end perspectives, they can help to drive up revenues. Currently, many banks are [falling short](https://www.financedigest.com/countries-emissions-pledges-still-fall-short-of-global-climate-goals-un-says.html "Countries’ emissions pledges still fall short of global climate goals, UN says") in this respect. Even larger institutions that may have commercial card programmes worth billions of pounds annually often do not have any systems in place to analyse overall spend per account and still less which of their customers are growing faster or [future potential to grow revenues](https://www.financedigest.com/sales-revenue-of-tpms-battery-market-to-soar-in-the-near-future-owing-to-growing-consumer-adoption.html "Sales Revenue of Tpms Battery Market to Soar in the Near Future Owing to Growing Consumer Adoption") from specific programmes. There are a raft of reasons why they should look at putting [technology in place to get a sharper insight into their commercial card programmes and start driving up value](https://www.financedigest.com/sulphur-recovery-technology-market-value-to-grow-by-almost-1-2-billion-during-2021-2031.html "Sulphur Recovery Technology Market Value to Grow by Almost .2 Billion During 2021-2031") for themselves and their customers. **Brand Trust and Customer Analytics** Transparency is always highly valued, yet in reality remains rare in the world of [commercial finance](https://www.financedigest.com/the-benefits-of-using-a-commercial-finance-broker.html "The Benefits of Using a Commercial Finance Broker"). CFOs struggle to [manage the constant stream of reporting from different sources](https://www.financedigest.com/activist-investor-elliott-management-takes-stake-in-salesforce-sources.html "Activist investor Elliott Management takes stake in Salesforce -sources") that is time-consuming and sometimes contradictory. Providers that can clearly dashboard spending so CFOs can see at-a-glance where spend is happening, [identify trends and dial up or down approval controls deliver transparency](https://www.financedigest.com/legal-entity-identifier-a-financial-tool-for-transparency.html "Legal Entity Identifier – A Financial Tool for Transparency") and trust where it is most required. Payments automation and the ability to capture all spend types, not just card-based, makes financial tracking easier and more efficient, finding sources of non-compliant spend (leakage) and enabling financial directors to [act](https://www.financedigest.com/time-to-act-as-cybercriminals-hot-on-the-heels-of-finance-sector.html "Time to act as cybercriminals hot on the heels of finance sector") quickly. Even beyond this focus on the brand, banks have the [potential to leverage enhanced technology to underpin their commercial card offerings and to use that to drive](https://www.financedigest.com/eyewear-market-rising-demand-or-trendy-and-fashionable-eyewear-drive-potential.html "Eyewear Market – Rising Demand Or Trendy And Fashionable Eyewear Drive Potential ") critically important customer analytics. Key metrics for a bank to track in order to improve card delivery and performance in this area while also enhancing client engagement include spend per account, average transaction value, operational costs and profitability. A higher SPA is likely to mean [improved profitability](https://www.financedigest.com/efg-international-says-profitability-improved-in-first-nine-months.html "EFG International says profitability improved in first nine months") and ROI for the issuer, greater client satisfaction with the product and better client references. [Higher average transaction value](https://www.financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarter.html "Delivery Hero sees higher gross merchandise value in third quarter") (ATV) scores generally result in greater profitability for the issuer. Moreover, tracking operational costs helps identify controllable costs which can be rapidly minimised without impacting [service levels while monitoring](https://www.financedigest.com/constructive-digitization-to-let-the-remote-patient-monitoring-services-market-come-of-age.html "Constructive digitization to let the Remote Patient Monitoring Services Market come of age") profitability helps to pinpoint immediate opportunities to extend the surplus of revenue over costs. Added to this, the technology also offers the opportunity to track further metrics from delinquency rates which if kept low offer the potential to increase issuer profitability and [end user](https://www.financedigest.com/metal-bellows-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region28925.html "Metal Bellows Market Competitive Growth Strategies Based on Type, Applications, End User and Region") ROI to client retention which if kept high will substantially reduce costs and increase the net present value of accounts booked. Other key metrics which can be tracked to drive benefits for the bank and its clients alike include [end user](https://www.financedigest.com/apac-solar-micro-inverters-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "APAC Solar Micro Inverters Market Competitive Growth Strategies Based on Type, Applications, End User and Region") cardholder perception and client perception of the banking relationship. **Finding a Focus** Taken together, [analysis of these metrics will help banks to understand where greater marketing](https://www.financedigest.com/percutaneous-tibial-neuromodulation-devices-market-analysis-recent-trends-and-regional-growth-forecast-by-2027.html "Percutaneous Tibial Neuromodulation Devices Market Analysis, Recent Trends and Regional Growth Forecast by 2027") effort is needed and also whether or not the products that the customer is currently using are fit for purpose. Beyond this, by being able to assess and segment the customer portfolio, [marketers can prioritise products and manage](https://www.financedigest.com/geometric-progression-based-on-digitization-to-be-witnessed-by-reproductive-management-products-market.html "Geometric Progression based on Digitization to be witnessed by Reproductive Management Products Market") incentives to keep growing their existing customer base and share of budget. Technology in and of itself is not a sales point for any client or commercial card provider. However, the associated benefits from delivering convenience, analytics, speed and [efficiency all combine to improve](https://www.financedigest.com/improved-patient-safety-efficient-dose-administration-and-seamless-interoperability-for-advanced-infusion-delivery-are-several-advantages.html "Improved patient safety, efficient dose administration, and seamless interoperability for advanced infusion delivery are several advantages") client retention and their overall share of wallet. Great experiences are as important in the B2B environment as they are in B2C sectors. If a [product is easy to use and provides added value](https://www.financedigest.com/how-process-automation-increases-productivity-in-the-insurance-sector-while-giving-employees-room-for-more-high-value-activity.html "How Process Automation increases productivity in the insurance sector while giving employees room for more high value activity"), customers are far less tempted by change. Card owners [see their costs of client acquisition fall](https://www.financedigest.com/uk-retailers-report-record-food-inflation-but-see-falls-ahead.html "UK retailers report record food inflation but see falls ahead") and lifetime value increase. Payments technology has the ability to deliver strong [revenue growth](https://www.financedigest.com/blood-bag-tube-sealer-market-to-witness-excellent-revenue-growth-overview-emerging-trends-and-forecast-by-2028.html "Blood Bag Tube Sealer Market to Witness Excellent Revenue Growth, Overview, Emerging Trends and Forecast by 2028") for issuers, even within the context of budgetary constraints. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---