In response to the burgeoning public health crisis, the Federal Financial Institutions Examination Council issued revised guidanceon March 6 on how to address pandemic planning in a bank’s business continuity plans. Create a profile of the type of client you wish to pursue. These tools can help identify specific fee, balance and service combinations that customers prefer. bankrate.com, nerdwallet.com, depositaccounts.com, etc. While foot traffic to branch offices had been decreasing prior to the pandemic, this trend has now accelerated dramatically. When you partner with the right people, if a customer trusts them they will implicitly trust your business and view it as trustworthy recommendation. strategies. Which of these bank deposit marketing strategies will you use next? Even the majority of people who decide to open an account at a physical branch gather information online first. For example, if you work with a lot of business owners, you could partner with an entrepreneurship center to get discounts for your members or provide innovative merchant services via a partnership. In this article, we will explore the wallet share of customers and strategies for increasing its wallet share. If you work with local business owners, see if you can partner on fundraisers or donate to local schools together. There are so many ways to market your bank, and you may be wondering if some of your ideas are even worth trying. Explore Online Account Harvesting. Ask for Referrals. Many elements play a role in creating a comprehensive local SEO strategy, but here are some essential strategies that you can use to get in front of your potential customers: Utilizing these local SEO strategies will also make it more likely for potential customers to find you through Google searches and business review sites. Bank deposits consist of money placed into banking institutions for safekeeping. What is their ZIP code, for example, and what financial products would they use? Many financial products are designed to assist people throughout the various stages of their lives – higher education, relocation, purchasing a home, starting a family. • United Commercial Bank: 14% growth in same store deposits – Targets Chinese-Americans – Offers personal service to this market • Union Bank of California: 11% growth in same store deposits – Small business focus – Uses relationship management strategies to build loyalty – Emphasizes transaction accounts • High margin, stable funds Need a partner to execute your deposit growth strategy? If they can do it, you can do it. If it’s not, Google will downrank your site and younger demographics won’t convert as well. The biggest things to nail down are your Google Business page, collecting Google reviews, and making sure you’ve submitted your address and phone number to Google Maps, Waze, etc. STRATEGIES TO INCREASE FEE INCOME & REVENUE . Here are the instructions how to enable JavaScript in your web browser. Every dollar counts! As an example, a large regional bank that we know used data analytics and market research to successfully restructure demand deposit account pricing, resulting in a net increase … With an estimated 224 million smartphone users in the U.S. in 2017, many of the high deposit customers your bank needs to attract are among this group. Millennials, Gen Z, and younger audiences can engage with finances differently; understanding these nuances can help improve the relevance of your products and communications. The last time community banks and credit unions had to proactively think about rising rate strategies was a few years before the 2008 crash, and according to TheFinancial Brand, there were three lessons to be learned: It’s fair to say there’s a similar opportunity today for community banks with smart deposit gathering strategies to play ball with bigger banks. An important consideration as you create your desired customer profiles is to research what you think may be attractive to your audience. Further, as more and more banks promote online and mobile account opening, we also expect these numbers to shorten by at least 20%. Social media platforms offer powerful targeting tools that allow you to deliver highly-focused ads to a specific audience based on their interests and lifestyles. Are they lifelong residents in the area, or have they just moved here from out of state? You could then advertise that higher rate heavily. Today’s Agenda • About Haberfeld Associates • Industry Backdrop • To raise fees or not to raise … You can further narrow your targeting to a specific list of customer email addresses (e.g. While we have talked about specific products and pricing effort in the past, this article should help banks expand their thinking when it comes to marketing to special segments and by focusing on the 50-year old and older set that has their money with investment professionals. Marketing is all about specificity. Understanding what your members or customers actually do with their money is revealed by our patented analytics. As technology becomes more robust and customer-buying habits shift, banks and credit unions must constantly be looking for areas of innovation and ways to meet the demands of a 21st-century customer. kids checking, youth/teen checking, student checking, 55+ checking), Lending discounts when loans are setup with an auto-pay checking account at your bank, Mergers/acquisitions of deposit-heavy banks (see our, Manually calling customers with other products who don’t have a checking account or other product with your bank, Manually calling on customers before their CD matures or special rate period ends, Offer other free benefits like cyber-security as part of account ownership, Introduce gamification through the bank’s mobile app to encourage saving, Become the official bank of a local college/university, Advertise on rate comparison websites (e.g. Education . FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, per … We’re not talking about a 100-page document. With that in mind, let’s cover 10 bank deposit gathering strategies you can use to increase your deposits. If your site automatically rearranges itself to fit within the window, then you’re set. You could also experiment with offering adult financial classes to help people understand how to secure their future — there are many options to utilize. Customer Retention Strategies for Banks. 7 Bank Marketing Strategies to Increase Deposits in 2021, More branch location page best practices here, getting some 5-star reviews on these sites will bolster your credibility, target megabank prospects or existing customers, digital marketing checklist for bank mergers and acquisitions, MasterCard debit card benefits and security, Free gifts for opening a checking account (new toaster anyone? If you want to attract more of a certain type of banking customer, then you and your entire staff need to understand who they are and their motivations for working with a local bank. One way to do that is to build or partner with ancillary services that support your ideal customer. On the commercial side, train your bankers to ask for deposits and incentivize them to … Once you know who you want to reach, integrated marketing strategies that include multiple touch points from direct mail, video, website content, email, print, and digital ads can help you grow deposits from existing customers and convert new customers to boost your bank’s deposits. Well, we’re here to tell you that yes, with the right plan it is absolutely worth it, and that investing in your bank deposit gathering strategies is more important now than in the past decade due to rising savings rates (1). Draw inspiration for these articles from common questions you receive on a regular basis, or highlight services that would be most beneficial for your target audiences. 5 Strategies for Growing Core Deposits Regulators and bankers are sharing one concern in common—how they will get and keep deposits as interest rates rise . This presents a major challenge for local FIs since most consumers searching for a checking account already have a brand in mind, and largely end up choosing that brand (see Oliver Wyman study). The basic premise of business realignment is to exit business lines that have low margins and move instead into lines that are inherently more cost-effective and increase bank profitability. In 2019, a few things are certain. By 2015, community banks had returned to pre-crisis levels in terms of noncurrent loans, net charge-offs and percentage of unprofitable institutions. Presented by: Bryan Easley Vice President Haberfeld Associates 206 S. 13th St., Suite 1500 Lincoln, NE 68508 P: 402-323-3791 E: bryan@haberfeld.com Thursday, June 23, 2016 Strategies to Increase Fee Income & Revenue . Branches will certainly continue to provide value for the foreseeable future, but physical bank locations will likely have a diminishing impact on deposit growth. You have a set-it-and-forget-it bank deposit growth machine. If you take the time to really build out a plan and execute it with a smart, analytical approach, then you will absolutely drive deposit growth for your bank. However, many banks attempt to gather more deposits by offering services other than just deposit accounts and hope that when customers sign up for these services the deposit accounts will follow. By doing this, you’re creating an effective resource for your audience while simultaneously showing them why your services are the solution for their needs. Following are six strategic areas where today’s industry leaders are focusing their efforts. 1. Business realignment. As you plan a deposit growth strategy for your community bank or credit union, consider these essential tactics for increasing core deposits: 1. Welcome back. Subscribe to our newsletter and get payment processing news & insights sent to your inbox. Indeed, consider what a Bank Executive Business Outlook Survey from late 2017 found. $5 per week is $260 per year. However, if you can, you might consider doing so. Contact us today. When it comes to your marketing efforts, try to tie each initiative and plan to a specific demographic. Paid search campaigns are so effective because they can be targeted to a specific audience according to the exact phrases they are searching Google for. By firmly investing back into your community with both actions and words, you can give potential customers a reason to choose you over a bigger bank, even if those banks have better rates. Your fortunes are intertwined with those of your neighbors and that is a powerful selling point. Once you’ve mapped out this information, then you can design your bank deposit marketing and outreach plan accordingly. At least for transactional banking purposes, many customers can’t remember the last time they walked into a physical bank. You may be the closest financial institution, and you may have the best rates for your deposit accounts, but if your competitors are dominating the top organic positions in Google and Bing search results, then you are missing out on new customers. Paid search advertising offers a clear path to presenting your services out to a highly-qualified audience. Grab the first-mover advantage. When it comes to high net worth customers, pick up the phone and get personal. People’s lives are busier than ever, so offering time-saving options with a mobile-first mentality will make your bank more attractive and translate into growing your bottom line. This isn’t the end-all of marketing strategies, but it is the one that speaks most plainly and has the easiest pitch. Now your community bank is competing against larger banks as well as online-only financial institutions for highly sought-after customers. That means you need to do your research, then roll out the red carpet. Your target customers are more likely to respond to a local bank that actively works to strengthen its community. Banks should consider this option if … they have significant market share in one or more core product areas. While prices will be much higher in larger cities, you should definitely be playing the online advertising game. Is this their first step towards organizing their finances, or are they looking to change financial institutions after many years? This targeting also allows you to create ads that are tailored to the needs of your specific audiences. Retail banks are under increasing pressure to retain and grow deposits, ... Identify these industries and explore focused strategies to better penetrate these segments. One of the simplest ways to become more competitive is to offer better rates. If you’re trying to sell a particular product – deposit accounts, for example – use your content as an opportunity to sell your audience by educating them about that product. In 2019, it’s become the norm for potential customers to turn to a search engine to research a product or service before they make a decision. For example, busy people may not want to go through the hassle of switching their checking account, so you don’t want to lead with checking account marketing strategies. Once your visitor has landed on your site or visited one of your branches, this is the time to present an attractive offer for a new deposit account. Being responsive is just a fancy way of saying your site can be used and looks good on mobile. Local banks and credit unions increasingly need to execute effective marketing strategies to reach their target audiences. 13 Foolproof Tips for Storing Credit Card Information Securely, instructions how to enable JavaScript in your web browser. Local SEO (search engine optimization) is the key to maximizing your online visibility for each of your branches. These strategies are generally useful for increasing your online visibility to a local audience and will yield long-term results. To learn more, go here. If you get paid every other Friday, set up a $20 transfer every other Friday from checking to savings, for example. Apart from the bigger picture deposit growth strategies, there are a variety of conventional ideas you can employ. Research backs up common-sense that people purchase more often from companies that engage them with education. Extreme intentionality about how you can pull in those kinds of accounts without having to do the fancy rewards programs where you’re paying somebody else to get it done when instead There was a time when serving up a smile and a small gift was enough to gain new accounts. Start with just $5 per week if you can’t afford more and increase it over time. Bank leaders expect deposit competition to increase over the next 12 months, and the number of executives expecting deposit competition to grow are at record-high levels for almost every region. On that note, make teller outreach a core part of your internal marketing strategy. Each of these groups has different needs, and present unique opportunities to open new deposit accounts. Win them over by being genuine, accessible, thorough, and proactive. Offer progressive rates depending on the amount in an account. ( Read More: How Banks and Credit Unions Can Survive Rising Interest Rates ) 4. Solicit deposits directly from customers through the following steps: Obtain best advertising rate quotes from newspapers, radio and television sources. Local search engine optimization (SEO) ensures prospects will find you online And while national banks enjoy widespread brand awareness thanks to enormous marketing budgets, awareness of community banks and credit unions in their local market is typically about half that of megabanks. Providing exceptional customer service in your bank or credit union is important, helping to attract and retain customers in a competitive landscape. This guide provides strategies for reaching prospective customers/members in order to increase core deposits. As a result, it’s become essential to place your community bank in front of these searchers. This is a huge difference when extended across multi-billion dollar deposit portfolios, and less-prepared banks could be further handicapped in the next rate cycle. Gathering deposits is the key to healthy growth in Banks and Credit Unions. When they do, make it count with friendly, personalized service. One is that your customers spend much of their lives online and on their mobile phones. Here are some things you should consider when building a paid search campaign if your goal is to increase deposits: The world of PPC is vast, and there are many elements that we haven’t touched on in this article – budget, ad extensions, display advertising, remarketing/retargeting, customer-match, and more. For example, a Facebook campaign promoting business checking accounts can be delivered to business owners or executives of a certain age group within five miles of your branch locations. Having the right focus for smarter performance management, targeting for … Remember you’re not the only bank trying to woo potential customers or sell additional products to existing customers. ), Tiered rates based on higher deposit balances, Referral incentives for signing up friends, Offering completely free checking to earn new customers, with intentional up-selling strategy, Offering relevant checking accounts for specific life-stages (e.g. For example, many credit unions and community banks partner with local car salesmen to offer seamless loan financing. As the teller processes the customer’s transaction, they can recommend products that would be a good fit, such as higher yield savings products or investment services. Offer bonuses for signing up or referring people. Let us know and we’ll add them to our list below! In order to make banking with your institution an attractive proposition, convenience is of the utmost importance. We enable deposit growth with fine-grained analysis of depositor behavior in the context of sales, attrition, product substitution and cross-selling. As you consider ways to increase your bank's customer base, consider how you can work with their needs and preferences to offer a convenient, safe service. This is often what distinguishes a community bank from larger, more impersonal institutions. Sign in to save Product Manager - Personal Deposits (Contract) at Laurentian Bank of Canada. If a customer is happy with the way they are … For example, a Facebook campaign targeting users based on a relevant life event such as marriage, graduation, relocation, or career change. You can also approach this from a product standpoint, so dividing your marketing efforts by student accounts vs. new business accounts, etc. Once you establish a good relationship with this one product, it’s easier to cross-sell other products such as that no-fee checking. That allows to you to be focused in your copy, emails, and all communications. One of the best ways to prepare for the changing environment is to make sure your bank has a written, well-prepared deposit strategy. So let’s get started. However, profitability has remained below pre-crisis levels in recent years. However, when it comes to growing deposits, don’t forget that Baby Boomers still hold two-thirds of all deposits, with substantially more assets under management at RIA (registered investment advisory) firms. Everything you do online has to be optimized for mobile these days. 10 Tactics for driving deposit growth #1 Analyze your best customers and build a marketing campaign for them Online banks, not incurring costs associated with physical branches, often offer higher interest rates on deposits than traditional banks. By Roxanne Emmerich August 26, 2015. Effective bundling with your consumer products can lead to an increase in consumer deposits. 5. Banks can employ a number of different deposit-gathering strategies ranging from promotional rates to prize draws to lure new customers. BankBound works exclusively with community banks and credit unions, using data-driven marketing to ensure the best ROI. As these numbers suggest, providing an effective, easy, meaningful, and effortless experience is one of the keys to reducing … It’s easier to be proactive when you aren’t dealing with hundreds of thousands of customers, and you should use that to your advantage. Analyze your existing customers and figure out which demographic will be your focus for this quarter or marketing campaign and then write up a one-sheet outlining exactly how they currently find out about your bank and what services you offer that are most appealing to them. On their interests and lifestyles & insights sent to your bank, per FDIC-insured bank, per Welcome. 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