Tag: Deposit Accounts

Why You Should Tidy Up Your Bank Products

Kondo-izing Your Bank

After a bestselling book and new Netflix special, Marie Kondo has tens of millions of people around the world organizing their homes and businesses. The key to the methodology is not minimalism but mindfulness. It is asking yourself - does this procession “spark joy”? If the answer is yes, you neatly put a trifold in it and put it in your drawer or closet in such a way that you can see it. If the answer is no, you thank the object for its years of service and then promptly donate or trash it. Banks should do the same thing.

 

How To Target Market To Improve Deposit Balances

Growing Deposits

Ask the regulators and one of the first questions you will be asked these days is your percentage of uninsured deposits to total deposits. The concern is grounded in data as higher balance accounts are more interest rate and risk-sensitive than lower balance accounts. In this article, we will look at the data around deposit performance as it relates to balances and shows how community banks can dramatically value by just better-allocating marketing and sales dollars more efficiently.

 

Setting Transaction Limits For Better Business Checking

Optimizing Business Checking

A business checking account is one of the most profitable accounts a bank can have. This is why it is perplexing that some banks put more thought into their break room coffee selection than the attributes of their business checking lineup.  Many banks either fail to put proper thought into the pricing and design of the business checking account or evolve their offerings over time never stopping to restructure the offerings and attributes to meet their current customer targets.

How To Build HSA Deposits With Simple Marketing

HCA Marketing

Happy tax day! We actually don’t know how you feel about tax day, so if you are grumpy about it, we apologize. However, as a banker, you should be positive on the subject. Taxes, no surprise, are an excellent inducement to engage customers with financial leadership. Tax strategies, savings, and future planning are all anxieties that drive customers, and potential customers, to research. Proactively seek inquiries, and your bank is likely to reap tremendous rewards.

The Data on Odd Digit Account Pricing

Bank Account Pricing Syntax

In a prior article where we tested “odd digit” account pricing, we showed that conversion rates were almost twice as high when we used a $1.99 price point for a product compared to $2.00 (HERE).  We previously also showed the importance for banks to show their pricing easily on their website. We received many comments on these blogs about our use of $12.95 per month pricing versus $12.99 or $13.00.

How Banks Are Stealing CD Customers

Deposit Gathering

There is a current trend afoot of refinancing certificate of deposit (CD) customer in order to take deposit customers away from sleeping banks and credit unions. While one bank’s “theft” is another bank’s competitive gain, both sides should be cognizant of the ramifications of this move. Some banks may let these customers freely go while others will combat the assault with higher rates, greater marketing or an improved structure. In this post, we explore both the math, the profitability, how best to play defense and how to use this tactic offensively.

The Importance of the Left Digit In Banking

Most banks completely ignore odd digit pricing. Instead of offering that competitive commercial loan for 5.00%, you offer the loan for 4.99%. Conversely, in a non-competitive situation, instead of offering a 5.20% rate, you offer a 5.23% rate and pick up three basis points per year. However, those banks that do are religious about it and as a result, it ends up increases their product acceptance rate and increasing margin.

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