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Monetizing Assets

Monetizing an asset is the earning of new or additional revenue, through a new asset or different use of an asset. As an example, you may have an asset like a car that you use for your personal transportation. You determine that you can use your car to offer rides to others, at a price. You’ve taken an asset and viewed it differently, not merely your transportation but transportation for others and made a new revenue stream for yourself. Later you view the car as a delivery vehicle and during your transporting of people you begin to deliver groceries also, increasing your revenue from the car. In effect, the owner of the car is creating more buying cycles for his vehicle. As such the car asset becomes more valuable.

Likewise, a financial institution has an asset in a customer, that customer makes deposits and writes checks. The financial institution would like to have the asset request a loan but the customer never does. How does the financial institution take that asset and increase its value? While all loans are derived from a buying cycle, the financial institution is seldom aware of the customer’s buying cycle requiring a loan. However, the asset, through innovative digital technology, can be monetized by creating situations where the financial institution is assisting the customer with a buying cycle. Assisting the customer rather than selling the customer, creates a trusting relationship. If the financial institution created scenarios that assisted the customer’s buying cycle, the financial institution’s customer would most likely produce a loan for its financial institution. The financial institution would segment or augment its customer base, into various buying cycles, separately aggregating healthcare businesses, veterinarians, remodelers, real estate agents, etc. into separate business networks. This would create an opportunity for great customer service, creating potential buying cycles for the customer, facilitating loan requirements and saving time searching for the best deal. With a multitude of potential buying cycles for the customer, that customer becomes more likely to:

  • Visit the financial institution website, frequently, increasing opportunities for more revenue
  • Appreciate the opportunity to secure a promotion from a business
  • Visit multiple buying cycle networks, looking for various deals
  • Get pre-approved for a loan
  • Get a loan

In effect, the financial institution has monetized an asset in multiple ways, creating increased income and a new income stream. Better yet, the financial institution has many more customers than cars!

Conclusion

The financial institution created:

  • More buying cycles for its loan products
  • In turn, more opportunity for revenue
  • A new revenue stream, advertising fees
  • Opportunity for the businesses to advertise to the Financial Institution’s customers
  • Opportunity for the businesses to make loans available online
  • Rewards for the Financial Institution’s customers in the form of promotions from the businesses
  • Differentiator for the financial institution to attract more businesses

The process of creating B2C, B2B and C2C commerce networks of various buying cycles, all automated, will multiply the revenue return for the financial institution. Also, the added benefit is better service for the Financial Institution’s customers. RiskCALM4 delivers all of this with integrated risk management.

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