The outbreak of the COVID-19 virus in the US has wreaked havoc on the nation’s economy. Financial Institutions have been particularly challenged as the rapid increase in unemployment has led to a decline in income deposits. However, it appears that the CARES Act relief payments for individuals and businesses have temporarily off-set the decline in income deposits. As the country works its way out of the economic slowdown caused by the virus, Financial Institutions will need to continue their focus on retaining and growing deposits as the government stimulus abate in the near future.
Here are four strategies financial institutions can deploy as we work our way through the crisis, to help deepen relationships with existing customers and enable continued deposit growth.
A common theme amongst these strategies is the underlying importance of having well-developed customer insights to help deepen the engagement of your customers.
1-Develop and Elevate Competitive Savings and Investment Offerings
The COVID environment has shown a need for families, businesses, and individuals to have and regularly contribute to an emergency fund and to re-evaluate their retirement and savings strategies. Understanding which customers are savers and investors, and which customers are spenders will help banks target specific messaging to educate customers on savings options and strategy tailored to fit their lifestyle.
2-Digital Marketing Efforts
During the COVID crisis, consumers moved rapidly to live and work in the digital world. This experience will accelerate the number of consumers and businesses that move more of their financial lives online. Personalization of communications through digital channels can also enhance deposit growth.
Understanding the digital relationships of your customers will be a key capability to better target your digital marketing messaging.
Developing customer rewards programs that include relationship bonuses and provide incentives on items such as dollars deposited, debit card usage, direct deposit, and online bill payment can also encourage deposit growth.
4-Community Engagement (Sponsorship and Events)
The Financial Services industry has done well to sponsor and support charitable causes related to helping our communities during this crisis. Continued support for local communities that have been hard hit by the economic slowdown associated with the virus outbreak will generate goodwill and brand awareness.
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 and analysis.
For more information related to how IFM is supporting financial institutions during the COVID crisis, watch this video for more information.
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.