If it starts cutting things off and looks bad, then you know you have work to do. As technology becomes more robust and customer-buying habits shift, banks and credit unions must constantly be looking for areas of innovation and ways to meet the demands of a 21st-century customer. Start with just $5 per week if you can’t afford more and increase it over time. In today’s competitive climate, you can’t assume that any single channel will take your prospects through the entire buyer journey. Social advertising – the use of ads on social media platforms like Facebook and LinkedIn – enables marketers to target these individuals with ads that address their changing lifestyles and countless other demographics or behaviors. Need a partner to execute your deposit growth strategy? For example, a Facebook campaign targeting users based on a relevant life event such as marriage, graduation, relocation, or career change. $5 per week is $260 per year. Once you establish a good relationship with this one product, it’s easier to cross-sell other products such as that no-fee checking. Which of these bank deposit marketing strategies will you use next? However, many banks attempt to gather more deposits by offering services other than just deposit accounts and hope that when customers sign up for these services the deposit accounts will follow. As a result, it’s become essential to place your community bank in front of these searchers. Your target customers are more likely to respond to a local bank that actively works to strengthen its community. Indeed, consider what a Bank Executive Business Outlook Survey from late 2017 found. There are so many ways to market your bank, and you may be wondering if some of your ideas are even worth trying. By tapping into these audiences and following social advertising best practices, banks have the ability to reach highly qualified prospects (and existing customers/members) with timely and relevant offers. 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. Here are the instructions how to enable JavaScript in your web browser. There are a lot of laundry list items you can do from a digital marketing standpoint to help you stand out online, and one of the most important ones is making sure your local SEO is up to snuff. Effective bundling with your consumer products can lead to an increase in consumer deposits. This is often what distinguishes a community bank from larger, more impersonal institutions. Grab the first-mover advantage. Make sure your online portal is easy to use and makes getting new accounts easy. As the teller processes the customer’s transaction, they can recommend products that would be a good fit, such as higher yield savings products or investment services. ), 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. By utilizing strategies like pay-per-click (PPC) advertising using tools like Google Ads, community banks have the opportunity to push past their competitors and gain prominence at the top of the search engine results pages. Explore Online Account Harvesting. In 2019, a few things are certain. strategies. While we have talked about specific products and pricing effort in the past, this article should help banks expand their thinking when it comes to marketing to special segments and by focusing on the 50-year old and older set that has their money with investment professionals. You can further narrow your targeting to a specific list of customer email addresses (e.g. The last time community banks and credit unions had to proactively think about rising rate strategies was a few years before the 2008 crash, and according to TheFinancial Brand, there were three lessons to be learned: It’s fair to say there’s a similar opportunity today for community banks with smart deposit gathering strategies to play ball with bigger banks. While prices will be much higher in larger cities, you should definitely be playing the online advertising game. When it comes to your marketing efforts, try to tie each initiative and plan to a specific demographic. If you’re trying to sell a particular product – deposit accounts, for example – use your content as an opportunity to sell your audience by educating them about that product. By firmly investing back into your community with both actions and words, you can give potential customers a reason to choose you over a bigger bank, even if those banks have better rates. Easier said than done, but I’ve seen banks go from 40 to 70 in just a matter of 6 to 9 to 12 months. Two other items to try: (1) Research how you can incorporate paid search options, and (2) explore adding gamification to your mobile app to encourage savings. Local SEO (search engine optimization) is the key to maximizing your online visibility for each of your branches. 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. Apply rising rates, externalities like increased social media advertising by national banks (which is currently happening) or a credit shock to the deposit holding institutions, and the average life numbers shrink dramatically. While foot traffic to branch offices had been decreasing prior to the pandemic, this trend has now accelerated dramatically. Presented by: Bryan Easley Vice President Haberfeld Associates 206 S. 13th St., Suite 1500 Lincoln, NE 68508 P: 402-323-3791 E: bryan@haberfeld.com Thursday, June 23, 2016 Strategies to Increase Fee Income & Revenue . 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. Since it is nearly an impossible task to run a successful financial institution without gathering and growing deposits, we’ve put together some ways that you can increase your deposit growth. Once you know who you want to reach, integrated marketing strategies that include multiple touch points from direct mail, video, website content, email, print, and digital ads can help you grow deposits from existing customers and convert new customers to boost your bank’s deposits. An easy way to test if your site is responsive is to open it on your desktop, click the top right of the window, and drag it down to a small size. Ask for Referrals. Make massive shifts now, to change the deposit mix to grow your core deposits. Of course, not every FI is able to raise its deposit rate. Offer progressive rates depending on the amount in an account. 5. 1. Business realignment. Is this their first step towards organizing their finances, or are they looking to change financial institutions after many years? We enable deposit growth with fine-grained analysis of depositor behavior in the context of sales, attrition, product substitution and cross-selling. When they do, make it count with friendly, personalized service. Contact us today. If your site automatically rearranges itself to fit within the window, then you’re set. George Doyle/Stockbyte/Getty Images . BancStudy: Consumer Deposits appends household type and geographic codes to your customer data using the Nielsen P$YCLE segmentation system. 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). Increase deposit growth with smarter performance management, targeting for growth, dynamic behavior insights and unique deposits product intelligence. Providing exceptional customer service in your bank or credit union is important, helping to attract and retain customers in a competitive landscape. 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. 2100 Clearwater Dr. Ste 140 Oak Brook, IL 60523, Tidal Commerce is a Registered ISO/MSP of Westamerica Bank, 3750 Westwind Blvd., Suite 210, Santa Rosa, CA 95403. Create a profile of the type of client you wish to pursue. Check the deposit rates that peer group banks are offering to … Marketing is all about specificity. Apart from the bigger picture deposit growth strategies, there are a variety of conventional ideas you can employ. Big banks only passed on a small portion of the Fed’s rate hikes. By 2015, community banks had returned to pre-crisis levels in terms of noncurrent loans, net charge-offs and percentage of unprofitable institutions. This is accomplished using target keyword groupings, specific ad content, geo-targeting and a host of other options. These tools can help identify specific fee, balance and service combinations that customers prefer. Bank deposits consist of money placed into banking institutions for safekeeping. STRATEGIES TO INCREASE FEE INCOME & REVENUE . As these numbers suggest, providing an effective, easy, meaningful, and effortless experience is one of the keys to reducing … Paid search advertising offers a clear path to presenting your services out to a highly-qualified audience. So let’s get started. Online banks, not incurring costs associated with physical branches, often offer higher interest rates on deposits than traditional banks. 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. 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’re looking to target a more specific audience, keep reading to learn more. Every financial institution should have implemented pandemic planning contingencies contained in its business continuity plan. • United Commercial Bank: 14% growth in same store deposits – Targets Chinese-Americans – Offers personal service to this market • Union Bank of California: 11% growth in same store deposits – Small business focus – Uses relationship management strategies to build loyalty – Emphasizes transaction accounts • High margin, stable funds According to a 2019 report from CommunityBanking.org, “Nearly one-third of bankers ranked either core deposit growth or the cost of funds as their greatest challenge.” Since then, the COVID-19 pandemic has created a number of new challenges for financial institutions. kids checking, youth/teen checking, student checking, 55+ checking), Lending discounts when loans are setup with an auto-pay checking account at your bank, Mergers/acquisitions of deposit-heavy banks (see our, Manually calling customers with other products who don’t have a checking account or other product with your bank, Manually calling on customers before their CD matures or special rate period ends, Offer other free benefits like cyber-security as part of account ownership, Introduce gamification through the bank’s mobile app to encourage saving, Become the official bank of a local college/university, Advertise on rate comparison websites (e.g. For many consumers, personal finance is a difficult, confusing topic. Let us know and we’ll add them to our list below! Extreme intentionality about how you can pull in those kinds of accounts without having to do the fancy rewards programs where you’re paying somebody else to get it done when instead By contrast, top performing banks saw an increase of only 140 basis points, capturing a funding advantage of 45 basis points per every 100 basis-point increase in the Fed Funds rate. However, a competitive loan offer may entice the same personal or business customer. That allows to you to be focused in your copy, emails, and all communications. That means you need to do your research, then roll out the red carpet. By Roxanne Emmerich August 26, 2015. In the era of direct deposit and mobile banking, customers don’t have to visit a physical branch. Following are six strategic areas where today’s industry leaders are focusing their efforts. 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. On that note, make teller outreach a core part of your internal marketing strategy. Banks should consider this option if … they have significant market share in one or more core product areas. BankBound works exclusively with community banks and credit unions, using data-driven marketing to ensure the best ROI. Are your prospective customers even aware of your bank? On the commercial side, train your bankers to ask for deposits and incentivize them to … Most banks give you an option to make a transfer recurring. Win them over by being genuine, accessible, thorough, and proactive. If you plan to enhance your online presence with paid ads, your best bet is to partner with a digital marketing agency that is experienced in helping banks grow. Couple this with a comprehensive understanding of your audience, and you can create social media ads that drive highly-qualified traffic to your site. Draw inspiration for these articles from common questions you receive on a regular basis, or highlight services that would be most beneficial for your target audiences. Research backs up common-sense that people purchase more often from companies that engage them with education. If you do not already have a mobile app to offer your clients, create a simple option that allows customers to perform basic functions like check deposit, account overview, and funds transfer from their handheld device. That dormancy meant that these banks’ flexibility was greatly limited, and their lending capacity was significantly reduced. Choose the deposit acquisition message that the bank would like to present to the public. Raising deposit rates was the most popular way within the industry to get more deposits. 7 Bank Marketing Strategies to Increase Deposits in 2021, More branch location page best practices here, getting some 5-star reviews on these sites will bolster your credibility, target megabank prospects or existing customers, digital marketing checklist for bank mergers and acquisitions, MasterCard debit card benefits and security, Free gifts for opening a checking account (new toaster anyone? If you work with local business owners, see if you can partner on fundraisers or donate to local schools together. Identify the customers your bank would like to attract and try to understand their banking lives. ( Read More: How Banks and Credit Unions Can Survive Rising Interest Rates ) 4. As you plan a deposit growth strategy for your community bank or credit union, consider these essential tactics for increasing core deposits: According to the CA Web Stress Index, 88% of consumers will shop online first before opening a checking account. For example, if you work with a lot of business owners, you could partner with an entrepreneurship center to get discounts for your members or provide innovative merchant services via a partnership. By doing this, you’re creating an effective resource for your audience while simultaneously showing them why your services are the solution for their needs. Branches will certainly continue to provide value for the foreseeable future, but physical bank locations will likely have a diminishing impact on deposit growth. As you consider ways to increase your bank's customer base, consider how you can work with their needs and preferences to offer a convenient, safe service. 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. Analyze your existing customers and figure out which demographic will be your focus for this quarter or marketing campaign and then write up a one-sheet outlining exactly how they currently find out about your bank and what services you offer that are most appealing to them. Once you’ve mapped out this information, then you can design your bank deposit marketing and outreach plan accordingly. loan customers who don’t also have a checking account with your financial institution). Solicit deposits directly from customers through the following steps: Obtain best advertising rate quotes from newspapers, radio and television sources. The basic premise of business realignment is to exit business lines that have low margins and move instead into lines that are inherently more cost-effective and increase bank profitability. 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