strategies to increase bank deposits

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. Good luck! If you’re looking to target a more specific audience, keep reading to learn more. $5 per week is $260 per year. As you plan a deposit growth strategy for your community bank or credit union, consider these essential tactics for increasing core deposits: 1. Go Local Education . Grab the first-mover advantage. Copyright 2020 Tidal Commerce. ), Participate in reciprocal deposits (which are no longer considered brokered deposits thanks to the Economic Growth, Regulatory Relief, and Consumer Protection Act), Partner with a local travel agency to create a customer Travel Club that offers discounted trips but requires members to have an active account with your bank, Debit card chip technology for added security, Debit card control (turn on/off from mobile app), Early direct deposit (many FIs now offering the ability to get paid 2 days early), Automatic sweeps into higher interest accounts, Added mobile app security (fingerprint or two-factor authentication), Monitoring/alerts of recurring subscription payments, Choice of printed statements or eStatements with check images included/archived, Smart ATMs that accept cash deposits, are contactless, mobile-friendly, or have a video teller, Automated account switching from a previous bank account, Expedited account opening (“open an account in 5 minutes or less”), Free trades in corresponding investment account. You could also experiment with offering adult financial classes to help people understand how to secure their future — there are many options to utilize. 1. Business realignment. You can either hire someone to do this for you or try it yourself. Solicit deposits directly from customers through the following steps: Obtain best advertising rate quotes from newspapers, radio and television sources. One of the easiest ways to generate new business and increase loyalty of current retail or business customers is to ask (and possibly incent) for referrals. By Roxanne Emmerich August 26, 2015. If it’s not, Google will downrank your site and younger demographics won’t convert as well. This much is obvious, but many financial institutions aren’t leveraging the full potential of their online presence with an effective search marketing campaign. Retail branch offices have traditionally been a market advantage for local financial institutions, but the need for local bank branches to grow target markets may be dwindling. We’re not talking about a 100-page document. When they do, make it count with friendly, personalized service. 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. To learn more, go here. Millennials, Gen Z, and younger audiences can engage with finances differently; understanding these nuances can help improve the relevance of your products and communications. Retail banks are under increasing pressure to retain and grow deposits, ... Identify these industries and explore focused strategies to better penetrate these segments. Subscribe to our newsletter and get payment processing news & insights sent to your inbox. This isn’t the end-all of marketing strategies, but it is the one that speaks most plainly and has the easiest pitch. There was a time when serving up a smile and a small gift was enough to gain new accounts. ), 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. Make sure your online portal is easy to use and makes getting new accounts easy. Bank and Credit Union sales, cross-selling, attrition and product substitution analytics from FlowTracker Analytics Inc. Which of these bank deposit marketing strategies will you use next? 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). 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). You could then advertise that higher rate heavily. 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. ( Read More: How Banks and Credit Unions Can Survive Rising Interest Rates ) 4. We enable deposit growth with fine-grained analysis of depositor behavior in the context of sales, attrition, product substitution and cross-selling. Local banks and credit unions increasingly need to execute effective marketing strategies to reach their target audiences. On the commercial side, train your bankers to ask for deposits and incentivize them to … With a proactive plan that capitalizes on your institution’s existing strengths, your FI can create winning strategies to increase deposits and thrive in a new era banking. You can further narrow your targeting to a specific list of customer email addresses (e.g. Core deposits became stagnant over a three-year period for community banks with less than $10 billion in assets. Knowing exactly how to increase bank deposits is the goal of every community bank and credit union’s marketing team, but sometimes it’s hard to know where to begin. Branches will certainly continue to provide value for the foreseeable future, but physical bank locations will likely have a diminishing impact on deposit growth. In order to attract and retain depositors, local banks must adjust how they engage customers and differentiate their brand. Win them over by being genuine, accessible, thorough, and proactive. Check the deposit rates that peer group banks are offering to … 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. Banks that let their customer experience decline risk losing up to 12.5 percent of their share of deposits; at the same time banks with high customer experience metrics increased their share of deposits by 16.5 percent. When it comes to your marketing efforts, try to tie each initiative and plan to a specific demographic. Consumer loans are also a great place to secure consumer deposits. Just remember that unless you’re dealing with customers with high volumes of cash, then chances are a rate may get a potential lead in the door but won’t keep them — your customer experience and ability to help them achieve their financial goals will. With the cost to acquire deposits increasing and fewer traditional bank deposit dollars circulating among an increasingly large playing field of competitors vying for them, like retail establishments, investment firms, person-to-person payments providers and others, financial institutions will have to work harder — and smarter — to retain and acquire deposits. This is accomplished using target keyword groupings, specific ad content, geo-targeting and a host of other options. 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. Apart from the bigger picture deposit growth strategies, there are a variety of conventional ideas you can employ. Online banks, not incurring costs associated with physical branches, often offer higher interest rates on deposits than traditional banks. One way to do that is to build or partner with ancillary services that support your ideal customer. Local SEO (search engine optimization) is the key to maximizing your online visibility for each of your branches. Being responsive is just a fancy way of saying your site can be used and looks good on mobile. Every dollar counts! 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. 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. FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, per … In today’s competitive climate, you can’t assume that any single channel will take your prospects through the entire buyer journey. 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 … 4. 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. If you get paid every other Friday, set up a $20 transfer every other Friday from checking to savings, for example. Large banks were too slow to capitalize on the rising rates, which left room for more nimble banks to pick up customers. 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. Once you’ve mapped out this information, then you can design your bank deposit marketing and outreach plan accordingly. You might consider doing so the end-all of marketing strategies will you use Next give you option... Pandemic, this trend has now accelerated dramatically banks give you an option make... Previous guidance issued in response to the public decide to open an account at a physical branch gather online. Business customer employ a number of different deposit-gathering strategies ranging from promotional rates to draws! Sell additional products to existing customers use to increase their share in existing segments report, Q2 2018 Expectations deposit. 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