Banks and Credit Unions everywhere are looking for low-cost deposits. Sure, we could raise our deposit interest rates and get as many deposits as needed but at a very high cost. Here is a tip on deposit gathering you can execute today with minimal effort.
Most institutions already have tiered rates on deposits. Savings accounts may have two tiers or if your institution is offering money markets, you may have 3 or more different tiers for balance ranges. Take a look at your customers and balances in the tiers. What if each customer upgraded to the next tier? How much would that generated in new deposits?
This is a very easy calling campaign or email campaign to notify a customer that they could be getting a better rate of return. Calling is always going to be more effective than email campaigns as you will have a chance to interact directly with the customer and find out where they are keeping the rest of their deposit money. Keep in mind that most customers have more than 5 banking relationships. If you want your bank or credit union to be top of wallet, focus on converting deposits from your competitor.
Here is a calling example:
“Good afternoon Mrs. Jones. This is Kendra Smith from your Ashland Branch at XYZ Bank. The reason for my call is we noticed that you currently have a money market account with us and we wanted you to know that the interest rates on this account has been going up significantly. For example, if you just added an additional $1,200 to your money market account, you could be earning an additional 2% interest. Would you find this to be helpful to have more interest on your savings?”
When presented with this offer, many customers will deposit much more than just the needed amount to reach the next tier. Your customer takes advantage of the best interest rate and you get an easy bump to your bottom line. This is exactly what we are looking for. In addition to the new deposit dollars, we find out which institution the deposits are coming from so we can note that in the banking CRM for future campaigns.
Quest Analytics provides a modular banking CRM solution called IQCRM. Using our IQLeads module to automatically data mine your core banking data, this exact lead could be setup to automatically generate and distribute on a daily basis. For more information about Quest Analytics IQCRM, request an email, phone call, or schedule a demo.