Question

Topic: Strategy

Attracting Cheap Banking Deposits.

Posted by Anonymous on 3/27/2008 at 12:48 PM ET 250 Points
There is a deposit mobilisation campaign at our organization and i have been given a target of securing deposits from my customers who are by and large loan seekers. I would like to find creative and effective strategy which would enable me not only sell loans but also achieve my target
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 3/27/2008 at 12:51 PM Author
    i would like to receive responses which are daring and cutting edge.
  • Posted by Inbox_Interactive on 3/27/2008 at 12:55 PM Accepted
    One usually doesn't hear about "daring and cutting edge" efforts in banks.

    Are you dealing with businesses or consumers?

    Are you trying to get deposits from your existing loan customers or from people who are trying to get loans?

    Everyone wants core deposits, and people don't change banks that easily. It's also a hassle to change accounts.

    Think about reasons that you can give to people for making the switch:

    1. You'll pay for their first check order
    2. You'll offer a discount on the loan rate
    3. Having more of their relationship with your bank could mean access to better services, terms, etc.

    And so on.

    I know these are not cutting edge or daring, but it's a BANK. Your customers have expectations about how you'll market to them.
  • Posted by Tracey on 3/27/2008 at 7:56 PM Accepted
    I agree with Inbox... don't focus on daring or cutting edge. Focus on your objective and then think about tactics that will meet the objective (the 'daringness' of the tactic isn't what matters - it's the effectiveness).

    I think that customer research could help you, but this is something that would be a larger project taken on by the bank, not just you. You need to find out what your customers needs are, where they are currently doing banking, and if they are saving. If your customers are not saving at all, you need to find new customers. If your customers are saving somewhere else, you need to figure out why, and then offer reasons to switch. But until you find out more about your customers, your efforts could be in vain... you're just shooting blindly and hoping you'll get something.

    Also, banking is about trust and relationships. How can you deepen your relationships with customers? How can you make them feel like your bank is their one and only resource for their financial matters? This is really a longer-term solution, so I'd caution that you can't expect instant results from relationship marketing - but necessary nonetheless. Relationship marketing might include tactics such as -- supplying financial tools (seminars on meeting financial goals, newsletters, etc.), sponsoring local events, courtesy calls or emails, etc.
  • Posted by Jay Hamilton-Roth on 3/28/2008 at 9:19 AM Accepted
    Encourage children/teen accounts. Have a low opening balance, and a system to reward regular deposits.

    Provide a CD-tie-in discount on the loan. Put $50K in a CD for 1 year, and your loan is discounted .5% for that year, etc.
  • Posted on 3/31/2008 at 12:41 PM Author
    thanks inbox and tracey i found your responses very insightful. i know that banks value that trust that the customers put on them and are by nature very conservative. ithe questions you posed tracey were very helpful and i have since devised a questionaire to find out whether or not our customers are saving and to what extent and what their banking needs are.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Strategy)