What Bankers Say Here is how some community bankers describe their experience using deposit placement services, which offer the ability for network members to sell deposits for fee income: • A Minnesota community banker: “As other institutions started to become more aggressive in raising deposit rates, deposit services made it easy to accommodate rate-sensitive customers on a case-by-case basis without cannibalizing our other deposits.” • A Texas community banker with an influx of liquidity: “Taking that money off our balance sheet has been a godsend. Our capital ratio went back up, and all the little things that the Fed examiners look at improved.” A Strategic Approach to Funding By using a deposit placement service to sell deposits, a bank can adopt a barbell approach to funding — fine-tuning the distribution of risk across its liabilities. For example, an institution can keep on balance sheet the amount of short‑term network deposits, which reprice efficiently and can be adjusted as rates change — while selling off higher rate, longer‑term deposits. Build and Maintain Strong Customer Relationships In an uncertain rate environment, effective liquidity management is essential. Having the ability to sell deposits through a deposit placement service enables banks to offer competitive long-term rates to customers and help manage their cost of funds or risk exposure. An essential feature of any robust deposit placement service is the ability to sell deposits to network members. This empowers banks to accept large-deposit customer relationships they might have otherwise declined due to concentration risk or balance sheet concerns. By saying “yes” to these valuable, franchise-building customers, banks can strengthen customer relationships and increase customer loyalty. Embracing innovative deposit placement solutions not only addresses immediate liquidity concerns, but also positions banks for long-term success. With rate changes potentially on the horizon, the ability to adjust funding strategies swiftly and efficiently becomes a significant competitive advantage, helping banks to meet customer demands and offering another tool banks can use to maintain financial stability in any rate environment. IntraFi® is a trusted partner chosen by more than 3,000 financial institutions nationwide. IntraFi’s network — the largest of its kind — brings scale, giving each participant access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the peace of mind of being able to make large-dollar placements. Learn more at www.intrafi.com. H.D. Barkett is senior managing director, treasury desk at IntraFi. Mr. Barkett has been involved in banking and financial services for the last 25 years, working with financial institutions on issues involving asset/liability management, liquidity management, risk assessment and management and portfolio hedging. Formerly, he served five years as vice president of sales and marketing and director of New Initiatives with the Federal Home Loan Bank of Des Moines. 19 Colorado Banker
RkJQdWJsaXNoZXIy MTg3NDExNQ==