In the quest for greater profitability, one strategy that we are employing here at CenterState Bank is the move to be less transactional and more relationship based products. While lots of banks say they are about the relationship, few banks can point to anything more concrete other than delivering “the personal touch.” Having good people and an accessible CEO is just the price of entry for relationship banking. True relationship banking requires products, process, culture and marketing in order to capture the hearts, minds and wallet of the customer.
In the attached video, we walk bankers through an account makeover in ten steps where we turn a low performing basic checking account into a high-performance product package that more than doubles profitability of the relationship. The video takes a real life case study and gives you the before and after view of the account.
By restructuring fees, adding combined balances, pairing checking with complementary products and creating a complete product line up that is segmented to the customer base, banks will find that balances increase, fee revenue goes up, retention jumps, engagement is strengthened, deposit duration is enhanced and convexity becomes greater. In short, performance is enhanced in almost any rate environment and the end result is an increase in lifetime customer value on the order of two to three times.
Watch the attached video and then adjust the attributes for your market. There are many ways to make a profitable business bundle, but here is one of the most tested. For further information on the future of building account value and to meet some banks that have put this very strategy into action, come to our Bank Management Conference this July 9th in Amelia Island, Florida. Register HERE. If you come, be sure to grab us for a one-on-one session where we can help with structuring more competitive loan, deposit and fee products. Don’t miss this fun and profitable event.
To view 10 Steps To A Relationship Deposit Product Makeover go here:
Submitted by Chris Nichols on February 23, 2015