DEPOSIT GROWTH STRATEGIES FOR BANKS Building Lasting Customer Relationships with Treasury Management BY JORDAN STERNLIEB, Senior Partner, West Monroe that lies therein becomes: How can banks create deeper relationships with their depositors via treasury services to protect their longevity and durability? By focusing on enhancing customer experience, fostering relationship longevity and leveraging data analytics, banks can create a compelling value proposition that empowers the treasury management function to drive deposit growth — meaning a focus on the following areas: Developing Data-Driven Segmentation and Executing for Tangible Results Unlocking deposit growth and retention requires financial institutions to harness the power of data analytics and adopt an execution strategy that encompasses a comprehensive change management framework. Banks possess significant — often untapped — portfolio and customer data that can be leveraged to target available segments and customer bases ripe for deposit acquisition. By targeting the right long-lasting relationships and directing efforts toward targeted client needs, banks can optimize their efforts and success rates in increasing customer wallet share — rather than over-investing in low-opportunities and under-investing in key opportunity areas. In an environment characterized by increasing interest rates and economic uncertainty, banks must address the interconnected threats of deposit runoff and uncertain loan portfolio returns to meet performance expectations. The recent run on deposits at both Silicon Valley Bank and Signature Bank only crystallized the urgency for banks to attract and retain deposits by demonstrating the ease and pace of a bank-run in the digital age. Given the outflow of deposits to both the largest banks and fintechs, the question now becomes how to ensure you’re keeping your existing deposit base? Treasury management is often looked to as a viable option for institutions to take on added deposits by creating “stickiness” with existing customers. The embedded question Looking to Drive Deposit Growth? Start With Data-Driven Strategies in Treasury Management Utah Banker 18
RkJQdWJsaXNoZXIy MTg3NDExNQ==