BEYOND THE BONUS In the race to grow deposits and market share, many financial institutions rely on cash sign-up bonuses to capture attention. While these offers can create a quick uptick in new accounts, they often fall short of delivering long-term value. For community institutions, trying to match the big-dollar offers of national brands can be costly — and risky. It’s worth asking: Are these incentives drawing loyal account holders, or simply “bonus chasers” who leave when a better deal comes along? THE PROBLEM WITH CASH BONUSES Cash bonuses may drive short-term results, but they rarely translate into meaningful relationships. New account holders drawn by a $200 or $300 offer often don’t set up direct deposit, use additional services or treat the account as their primary financial hub. The result? High acquisition costs, low engagement and disappointing ROI. Without a plan to encourage deeper connections, many of these accounts go dormant — or close entirely — after the initial reward is paid out. That’s why the key is to put a comprehensive strategy in place to achieve your goals. SMARTER INCENTIVES BUILD STRONGER RELATIONSHIPS A better approach focuses on encouraging regular usage and long-term engagement. Relationship-based incentives — such as cashback debit rewards or automatic round-up savings — are especially attractive to younger generations looking for digital convenience and long-term value. These tools not only provide ongoing value but also help establish healthier financial habits — making it more likely that consumers will stay. Add financial wellness features HOW TO ATTRACT LONG‑TERM ACCOUNT HOLDERS BY ADVANTAGE PART 1: 12 Community Banker
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