Tag: Deposit Offerings

Lessons In Deposit Mix From Last Rate Cycle

Deposit Management

Banks have smartly used the low rates of the last ten years to restructure their liabilities so that they are much less interest rate sensitive than they were during the last tightening cycle. The fear is that as we face the next tightening cycle, banks will relax and give themselves carte blanche to add more time deposits. This happens every rate cycle, and in this article, we review what happened during the last cycle and point out ways that banks can avoid becoming more interest rate sensitive.


Bank Marketing With The IRS

Bank Marketing

While we know many of our readers have seen our data analytics on the best (green) and worst times (red) to market for deposits (below), but we just wanted to remind your bank that now remains one of the best times to market checking, savings, IRA and other accounts all thanks to the IRS and consumer behavior.  This is a tactic that every bank should do because it is so effective. Conversion rates for email campaigns are often double than regular marketing efforts and the return is significant.

Banks – We Bore Our Customers

Make Bank Products Exciting

When it comes to describing banking or banking products, the problem is that most bankers think like a banker. Just take a look at any bank’s website or marketing materials and you will see what we mean. If you do, you will find that most banks fail to describe their accounts and when they do, it is a list of attributes such as “Free checks” and “Online Statements.” What is missing in the marketplace is a description of banking products and services that reach our customer’s emotions and imagination.


Why Do Banks Still Have A NOW Account?

Streamlining Deposit Accounts

There are a material amount of banks out there that still offer negotiable order of withdrawal (“NOW”) accounts. Our question is why? Why not also offer a Christmas Passbook Account while you are at it? The NOW account predates the Dodd-Frank Act and while there was little need to carry it before, there is now no cogent argument that can be made for carrying it present day.

Using Personal Combined Balances for Business Accounts

Deposit Account Design

Only an estimated 60% of banks allow customers to use combined balances of multiple products (both other deposit accounts and/or loans) to offset minimum balance requirements or average balance requirements in order to have their monthly account fees waived. Very few community banks allow personal/retail accounts to contribute to the combined balance requirements of their business accounts. This is a mistake as there are some distinct advantages.


The Advantage of Combined Balances

The Most Profitable Designed Account In Banking

Bank Account Design and Profitability

Banks computing lifetime value of customers know that there are six components: 1) Cost to acquire; 2) Revenue/cost savings (volume and pricing); 3) Cost to service; 4) Relationship life; 5) Interest rate sensitivity; and, 6) Propensity to generate other business (referrals, related accounts, new product uptake, etc.). A customer represents a stream of cash flow and by looking at the revenue generated; the cost of the account and then discounting all that back over the expected life, banks can derive the customers expected lifetime value.


College Names, Cost And Why You Need a Goal-Oriented Savings Account

Goal-oriented savings accounts

When it comes to giving advice on saving money on college, our first advice is pick a college with a long name.You want to avoid schools with names like “Harvard,” “Duke” or anything with well-known initials, and suggest colleges like “West Oakdale Community College For The Commercial Transportation Arts.” For that matter, if essays are involved, you should probably suggest skipping it, as you want to look for a one-page application where three quarters of the page is focused on the utilization of how to use major credit cards.  If the above advice doesn’t work out, we can

This Bank's Deposit Innovation Should Spur Your Bank's Creativity

Deposit Innovation

We talk to more than 4,000 banks nationwide and sometimes that is not enough. Last week we had to go out of country in order to get the scoop from Alfa Bank, Russia’s largest private bank ($82B in total assets) and learned something new. The Bank introduced a new deposit account that has a rate of interest tied into an activity tracker.


This New Savings Account Should Inspire Banks

Savings Account Innovation

Last week, Suntrust introduced their new savings platform called e-Savings that allows customers to open multiple subaccounts tied to their regular checking account. What is basically a modern redesign of the Christmas Club account, the platform allows bank customers to segment their funds for specific purposes thereby giving savers more control and accountability.

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