I’ve been spending a lot of time writing about growing loans and bolstering your institution’s technology-driven delivery channels. I’m changing it up today to talk about drawing in deposits, which has become highly competitive in today’s rising-rate environment in which it’s increasingly costly for your institution to borrow for liquidity. It’s not as sexy as tech, but it is the foundation of the business.
Deposits can do much more for your community bank or credit union than fund loans to serve your borrowers. A second, invaluable purpose it to deepen the relationship with your customers. Couple that with the right tech, and you can really drive your bottom line. By using the information we have on our customers, we can leverage that data to build series of programs to bring their financing needs to your institution over another.
Let’s take a minute and talk about Bob, who has just signed up for a personal checking and savings account with your institution. Over time, his transactions are generating records you can analyze to offer Bob and others like him better services.
Click here to learn more about how Vetter can help you build deposits and expand your reach!
You see that Bob is paying credit cards and student loans for his child, and a mortgage out of his checking account. Bob’s money is running out of your banking to other financial institutions. It’s no help to your bank! Are you taking the time to ensure Bob knows about your competitive offers? Your bank may be able to lower his interest rates or payments on his existing, private student loan. What about credit cards from your institution? You may want to consider a balance transfer special offering to help bring more of Bob’s business your way.
By taking the information from one product, you can offer Bob several options to help him save money while generating new revenue for you. In addition, with the right tech delivery channels and seamless service, you’re going to turn Bob into a very happy and loyal customer, making it harder for him to leave your financial institution. And you’re bumping him up the Net Promoter Score scale, which means it will be more likely for him to recommend you to his friends. Nothing is better than free, word-of-mouth marketing, right? Referral and loyalty programs compounding these benefits will only make him more excited about your institution, contributing to this cycle.
Banks in particular, but also credit unions, got comfortable borrowing at next to nothing for several years. Now is the time to ramp up our deposit products again. Having the right approach to analytics, coupled with multiple coordinated offers based on what you’re constantly learning from your data not only helps you know your customers – it helps you dazzle them while growing your business. Click here to contact Vetter today to see how we can help you drive value.