By Matt Helsing SVP & Northwest Regional Manager, PCBB, ICBC Associate Member Community banks in search of deposits might see raising rates as their best option to gain customers, but that’s an expensive proposition, particularly as the Fed contemplates lowering rates. Luckily, your bank can choose from a multitude of less‑expensive strategies for attracting deposits. Consider one of these alternative strategies before defaulting to interest rate increases to entice new business: 1. Analyze your customer base. Find out who your best, most loyal customers are. You can also use a comprehensive profitability tool to learn which customers are bringing in the most revenue for your institution. Target your marketing efforts specifically to these groups and identify what demographics they share. This will allow you to create more targeted advertising for these groups and lookalike customers. 2. Increase marketing efforts. Make it easy for potential customers to find you. Update your search engine optimization (SEO) so that your homepage comes up quickly on searches for financial institutions meeting your target markets, and make sure that your website has accurate branch information so that potential customers know your operating hours and how to get ahold of you. Use online advertising and make sure your website works well on mobile devices. Invest in your community by leading fundraisers or sponsoring financial literacy courses. Consider teaming up with your top business customers to make joint donations to worthy local causes. 3. Focus on multi-product relationships. Look for ways to cross-sell products to your current consumers to deepen that relationship. Loan customers could also add their own personal financial accounts; business customers could always benefit from additional cash and treasury management services. A way to encourage this is through limited offers or bundles to entice them to add new services or open additional accounts. TO DRIVE DEPOSIT GROWTH W I T HOU T R A I S I N G R AT E S 8 WAYS 14 | INDEPENDENT REPORT
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