The Wall Street Journal published an article that discussed the movement of deposits among the largest banks in the US. According to the article, many regional banks experienced a decrease in deposits year over year. To address the fierce competition for deposits, many financial institutions are looking for new and innovative approaches to retain and grow deposits.
IFM recommends the following two proprietary indicators be part of your overall deposit retention strategy to retain and grow deposits from existing bank customers.
IFM TriScore™ - Scores client households based on the historical discretionary outflow of deposits and identifies the likelihood of additional outflow from your bank.
Primary Bank Indicator™ - The quality versus quantity of transactions is used to identify customers who consider your bank their primary banking relationship.
Learn more about utilizing IFM's insights to enhance your deposit strategy.
When utilizing these indicators together you will have the ability to identify bank customers who are likely to move their “discretionary” deposits out of your bank, prioritize outreach beginning with your most loyal customers, and craft marketing communications and offers to specific segments of deposit moving customers to retain more of their deposits and investments.
The coupling of these two indicators offers a powerful approach to deposit risk mitigation and retention for your bank. Contact IFM today to learn more about utilizing these insights to enhance your deposit strategy and other customer behavioral insights that can be leveraged across your enterprise.