How to Increase Deposit Growth at a Regional Bank
Retaining and increasing deposits are among the primary goals at all banks. Achieving these goals has been made a bit more difficult given the increase in product options and different types of institutions that customers now have to choose from. While deposits, in general, have seen some growth over the past few years, there has been a slight disparity in growth trends between community banks and regional banks. Whereas non-community banks saw a 26.7% rise in deposits in the last five years, deposits at community banks rose 30.7% in the same period.
What Can Regional Banks Learn From Community Banks?
While regional banks generally have a wider market to cover, there are some tactics employed by community banks that others may want to consider. Some examples include localized community involvement, creating calling programs to develop and strengthen relationships, and supporting local business organizations.
1. Develop and Elevate Competitive Investment Offerings
In today’s competitive environment, it is more important than ever for a bank to fully analyze and understand the financial behaviors of its customers. Knowing what types of savings vehicles are used and the institutions they use will help the bank develop competitive products as well as to educate customers on options offered within the bank. Many banks have digital account types that pay better rates and offer brokerage and investment products that customers may be unaware of.
2 – Digital Marketing Efforts
To gain an edge over your competitors, your institution should have a content marketing strategy as well as employ the use of various online marketing techniques for banks. Enabling account opening and a more favorable rate for digital-only access will be attractive to many customer segments. Personalization of product offers communicated through digital channels can enhance deposit growth.
3 – Create Product Bundles
Add value to customers by offering checking account product bundles that include rate bonuses on savings vehicles or discounts on brokerage accounts to attract and retain new deposits.
4 – Marketing Incentives
Developing customer rewards programs that include relationship bonuses on items such as dollars deposited, debit card usage, direct deposit, and online bill payment can also encourage deposit growth.
5 – Community Engagement (Sponsorship and Events)
Sponsoring charitable causes and local events are some of the best ways to support the communities in which the bank does business and to generate goodwill and brand awareness. Business bankers can also join local business chamber of commerce associations to bring the bank closer to the community and to establish relationships.
IFM has a proven track record of helping clients leverage near real-time financial behavior of their customers to grow and retain deposits as well as to increase the share of wallet and profitability.
IFM delivers a wide range of solutions from applying machine learning to predictive models, delivering life event trigger leads, and deep insight into customer channel preferences.
Contact IFM today for a free consultation.
Rob Reale is an Associate Partner and National Sales Manager responsible for business development and sales at Insight Financial Marketing. Rob began working in the Mortgage Banking industry in 1990 and currently helps the financial service industry leverage unique and innovative solutions.