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. 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. 4. If you’re looking to target a more specific audience, keep reading to learn more. Which of these bank deposit marketing strategies will you use next? Relationships are everything and individuals and businesses will appreciate the special touch and attention to their needs and satisfaction. One of the simplest ways to become more competitive is to offer better rates. 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. Explore Online Account Harvesting. When they do, make it count with friendly, personalized service. You can further narrow your targeting to a specific list of customer email addresses (e.g. Need a partner to execute your deposit growth strategy? Couple this with a comprehensive understanding of your audience, and you can create social media ads that drive highly-qualified traffic to your site. Choose the deposit acquisition message that the bank would like to present to the public. With that in mind, let’s cover 10 bank deposit gathering strategies you can use to increase your deposits. While competition has already begun heating up in some markets, these are the early skirmishes in a sustained war for core deposits. The ball is in your court now. Use these strategies to keep your deposits safe when they top FDIC limits. Today’s Agenda • About Haberfeld Associates • Industry Backdrop • To raise fees or not to raise … Recent deposit trends, moreover, may be a sign of the changing financial environment, which is not only increasing competition among banks, other financial institutions, and the capital markets, but is also creating new funding instruments and bank delivery channels. 5. If your bank does not have a digital presence that allows simple transactions to be done anywhere, anytime, you will not grow your number of deposits and, in fact, you may lose existing customers. One is that your customers spend much of their lives online and on their mobile phones. Here are the instructions how to enable JavaScript in your web browser. Many financial products are designed to assist people throughout the various stages of their lives – higher education, relocation, purchasing a home, starting a family. Once you’ve mapped out this information, then you can design your bank deposit marketing and outreach plan accordingly. Are they lifelong residents in the area, or have they just moved here from out of state? Effective storytelling can yield serious results. 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. Large banks were too slow to capitalize on the rising rates, which left room for more nimble banks to pick up customers. 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. If you want to attract more of a certain type of banking customer, then you and your entire staff need to understand who they are and their motivations for working with a local bank. 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. Core deposits became stagnant over a three-year period for community banks with less than $10 billion in assets. Local banks and credit unions increasingly need to execute effective marketing strategies to reach their target audiences. There are so many ways to market your bank, and you may be wondering if some of your ideas are even worth trying. Let us know and we’ll add them to our list below! One way to do that is to build or partner with ancillary services that support your ideal customer. If you work with local business owners, see if you can partner on fundraisers or donate to local schools together. 6% of U.S. total banks closed following the financial crisis, and it is projected that 20% of all branches will close by 2020. Is this their first step towards organizing their finances, or are they looking to change financial institutions after many years? If a customer is happy with the way they are … Big banks only passed on a small portion of the Fed’s rate hikes. As these numbers suggest, providing an effective, easy, meaningful, and effortless experience is one of the keys to reducing … Bank deposits consist of money placed into banking institutions for safekeeping. SEO stands for search engine optimization, and it’s just making sure your site communicates with Google and other local directories in the best way possible. Education . By Roxanne Emmerich August 26, 2015. On the commercial side, train your bankers to ask for deposits and incentivize them to … Setting up evergreen ad campaigns that bid for keywords on Google like “local bank near me” and “need to set up a checking account” can go a long way for lead generation. For example, many credit unions and community banks partner with local car salesmen to offer seamless loan financing. 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. In 2019, a few things are certain. In the era of direct deposit and mobile banking, customers don’t have to visit a physical branch. This guide provides strategies for reaching prospective customers/members in order to increase core deposits. STRATEGIES TO INCREASE FEE INCOME & REVENUE . Marketing is all about specificity. Focus on who matters Customer service is still one of the key ways to attract and retain customers. 10 Tactics for driving deposit growth #1 Analyze your best customers and build a marketing campaign for them In 2019, it’s become the norm for potential customers to turn to a search engine to research a product or service before they make a decision. Gathering deposits is the key to healthy growth in Banks and Credit Unions. Raising deposit rates was the most popular way within the industry to get more deposits. In order to attract and retain depositors, local banks must adjust how they engage customers and differentiate their brand. 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. However, profitability has remained below pre-crisis levels in recent years. Tie that into a custom landing page with a Facebook pixel to retarget people who click and boom! Each of these groups has different needs, and present unique opportunities to open new deposit accounts. However, if you can, you might consider doing so. We’re not talking about a 100-page document. To learn more, go here. Now your community bank is competing against larger banks as well as online-only financial institutions for highly sought-after customers. Good luck! Increase deposit growth with smarter performance management, targeting for growth, dynamic behavior insights and unique deposits product intelligence. 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. So let’s get started. In order to make banking with your institution an attractive proposition, convenience is of the utmost importance. Even the majority of people who decide to open an account at a physical branch gather information online first. Most banks give you an option to make a transfer recurring. Solicit deposits directly from customers through the following steps: Obtain best advertising rate quotes from newspapers, radio and television sources. That allows to you to be focused in your copy, emails, and all communications. 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. Research backs up common-sense that people purchase more often from companies that engage them with education. For example, a Facebook campaign targeting users based on a relevant life event such as marriage, graduation, relocation, or career change. The revision updates previous guidance issued in response to the avian flu pandemic of 2007. Increasing your marketing effort to target deposits can pay off handsomely for banks. Adding to the power of branch-based sales is the increasing use of tablet-assisted employees at the branch level who can have all of the tools at their fingertips. One of the best ways to prepare for the changing environment is to make sure your bank has a written, well-prepared deposit strategy. ), Participate in reciprocal deposits (which are no longer considered brokered deposits thanks to the Economic Growth, Regulatory Relief, and Consumer Protection Act), Partner with a local travel agency to create a customer Travel Club that offers discounted trips but requires members to have an active account with your bank, Debit card chip technology for added security, Debit card control (turn on/off from mobile app), Early direct deposit (many FIs now offering the ability to get paid 2 days early), Automatic sweeps into higher interest accounts, Added mobile app security (fingerprint or two-factor authentication), Monitoring/alerts of recurring subscription payments, Choice of printed statements or eStatements with check images included/archived, Smart ATMs that accept cash deposits, are contactless, mobile-friendly, or have a video teller, Automated account switching from a previous bank account, Expedited account opening (“open an account in 5 minutes or less”), Free trades in corresponding investment account. Once you establish a good relationship with this one product, it’s easier to cross-sell other products such as that no-fee checking. 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. This makes the most of your ad spend by only showing your ads to individuals that you’ve selected through targeting. One of the easiest ways to generate new business and increase loyalty of current retail or business customers is to ask (and possibly incent) for referrals. There was a time when serving up a smile and a small gift was enough to gain new accounts. Every dollar counts! You can also approach this from a product standpoint, so dividing your marketing efforts by student accounts vs. new business accounts, etc. As you plan a deposit growth strategy for your community bank or credit union, consider these essential tactics for increasing core deposits: 1. 1. Here are some things you should consider when building a paid search campaign if your goal is to increase deposits: The world of PPC is vast, and there are many elements that we haven’t touched on in this article – budget, ad extensions, display advertising, remarketing/retargeting, customer-match, and more. loan customers who don’t also have a checking account with your financial institution). 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. strategies. While prices will be much higher in larger cities, you should definitely be playing the online advertising game. Ask for Referrals. Contact us today. Paid search advertising offers a clear path to presenting your services out to a highly-qualified audience. Indeed, consider what a Bank Executive Business Outlook Survey from late 2017 found. 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. 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. Invest in relevant educational content by creating high-quality website content and blog articles that will inform your audience. In the aftermath of the Great Recession of 2009, community bank performance rebounded in tandem with the rest of the banking industry. By 2015, community banks had returned to pre-crisis levels in terms of noncurrent loans, net charge-offs and percentage of unprofitable institutions. You could then advertise that higher rate heavily. 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. Overall, don’t take any customer for granted. 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. As an example, a large regional bank that we know used data analytics and market research to successfully restructure demand deposit account pricing, resulting in a net increase … George Doyle/Stockbyte/Getty Images . Presented by: Bryan Easley Vice President Haberfeld Associates 206 S. 13th St., Suite 1500 Lincoln, NE 68508 P: 402-323-3791 E: [email protected] Thursday, June 23, 2016 Strategies to Increase Fee Income & Revenue . And while national banks enjoy widespread brand awareness thanks to enormous marketing budgets, awareness of community banks and credit unions in their local market is typically about half that of megabanks. You could also experiment with offering adult financial classes to help people understand how to secure their future — there are many options to utilize. 1. Business realignment. This is a huge difference when extended across multi-billion dollar deposit portfolios, and less-prepared banks could be further handicapped in the next rate cycle. Do you have additional marketing ideas for growing deposits? Merchants are equipped with the latest tech and save an average of 35% when they switch to Tidal, and you can be the champion of your customers’ success stories by partnering with Tidal in any format you choose. Here’s a short list to get started: It can also be useful to know what your competition is doing as well. If it’s not, Google will downrank your site and younger demographics won’t convert as well. 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 full functionality of this site it is necessary to enable JavaScript. Following are six strategic areas where today’s industry leaders are focusing their efforts. Copyright 2020 Tidal Commerce. Offer bonuses for signing up or referring people. 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