Tag: Deposits

Tactics To Drive Bank Product Conversion With Marketing

Take a second to think about how much of your operating, sales and marketing effort is spent acquiring new customers versus growing your existing customers. If you are like most banks, 95% of your effort is directed at new customer acquisition and not at increasing product usage. This is an area where banks can improve as when you look at conversion rates for bank products, the highest probability of sale is in those loyal customers that already use a product, just not to its fullest extent.

 

8 Items To Consider When You Revise Your Bank’s Fees

Setting Bank Fees - Woman staring out from an ATM

When was the last time you changed your fees? Most banks, when setting fees on bank products and services start and end by taking a look at what selected competitors are doing. This method, while not a bad start, will almost always result in a suboptimal setting of fees. The reason for this is not only is your bank very difficult to compare to your competition, but your competition is likely doing the same thing. In this article, we look at practical considerations for banks looking to set or revise their current fee structure.

 

How To Speed Up The Deposit Sales Cycle

Growing Deposits

Given that it is the start of the year, it is a common practice in banking to clean your desk to kick things off. When it comes to desk cleanliness, you have two choices:  leave your desk alone or set it on fire.

10 Industries More Profitable For Banks Than Homeowners Associations

Growing Deposits and Fees

According to the Community Association Institute, approximately 21% of Americans live in common-interest communities. For banks, particularly those that are in FL, CA, TX, IL, NC, NY, MA and GA (in order) on a client acquisition-cost-to-cumulative-lifetime-value basis they are one of the best clients to have. The reason for this is that they are plentiful (over 342k of them in the U.S.) they have high deposit balances, and they generate large fees with their lock box activity.

The Top 15 Industries Where Banks Can Find Deposits for 2019

Growing Deposits

In the quest for deposits, one successful tactic at top performing banks is to target the right customers. While banking everyone in your community is egalitarian, it is also a poor use of resources. Some customers offer better returns because they use more banking services and have more deposit balances. Not to say you want to ignore some parts of your community, but why not focus more of your resources on those customers that are going to make your bank more profitable?

Playing Defense Against Deposit Competitors

Fighting Deposit Competition

In a recent article we published on Where Your Deposit Balances Are Going, we might have underplayed the looming competition for deposits particularly from money market mutual funds (MMF) and online-only banks. Our article failed to highlight an important signal that has only been present since April of this year. As such, our use of second-quarter data, in retrospect, didn’t adequately capture the risk that many community banks are and will be facing.

Where Your Deposit Balances Are Going

Deposit Management

Go to any bank conference, bank investor gathering or analyst meeting and the hot topic is the slowdown in deposit growth. As the economy keeps rolling and the Federal Reserve continues to raise rates, the topic of a bank’s increasing cost of funds, slowdown in deposit growth and the jump in liability interest rate sensitivity are on everyone’s minds.

The Effectiveness of Bank Email Marketing – Deposit Example

When it comes to marketing bank products, email remains king. It is not only the preferred marketing channel of every age group, but it is the most effective as well. Of course, no one wants an irrelevant message that clogs up their day, so a bad email message also has the power to inspire the greatest backlash. In this article, we look at the data on email’s effectiveness and highlight ways banks can better hyper-personalize their message to take their email marketing to the next level.

 

Now Is The Time To Segment Deposits By Elasticity

Deposit Management

Recent changes in rates have given bankers a fantastic window into their deposit base. If you are serious about building a more valuable bank, use this time to look at your data in order to see what deposit customers are rate sensitive and which are not. By knowing this, bankers can better market, plan and manage their deposit base in order to achieve better performing liabilities. In this article, we take a look at how banks can analyze their data and what it means. 

 

The Valuable Deposit Base

The Biggest Mistake When Pricing Deposits

Better Deposit Pricing

Many banks work hard to have a low-cost deposit base only to undermine their efforts. One of the biggest mistakes banks make is to advertise an above market rate thereby not only shortening deposit duration and increasing negative convexity for that one account, but for the whole product offering.

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