Coronavirus deposit bonanza can spell trouble for banks
Flow-of-funds analysis can provide a clearer picture of evolving customer behaviors
Gaining an edge in the battle for deposits
The battle for deposits has become increasingly competitive for community financial institutions. Major retailers and tech companies such Apple, T-Mobile and Google are attempting to enter the financial services landscape, posing new threats to existing players. As a result, money that used to be stored in traditional bank accounts is now scattered across various channels that are Read More
Answer these ten questions to win the deposit growth game
If a “secret sauce” exists to improve bank performance, it’s likely via capturing and retaining low-cost deposits. Low-cost funds feed a strong net interest margin and allow lenders to maintain a strong discipline and avoid higher yielding, riskier transactions. So it was a surprise to hear a regional bank CEO recently (and confidently) state that because the Read More
Money in your bank: Grow your deposit base with innovative search strategy
As interest rates rise and financial institutions face mounting pressure to fund lending with a reasonable cost of capital, acquiring new core deposits and customers affordably is paramount. Against this backdrop online-only banks thrive, accounting for nearly 12 percent of all new primary banking relationships in the U.S. What’s more, BAI Banking Outlook findings show that more Read More
Growing up: How regional and local banks are boosting deposits
For years, community and regional banks tossed proverbial pebbles to gain deposits as Goliath-like megabanks rolled out massive marketing campaigns. But in 2018, and into the new year, the Davids of the banking world may now have better slingshots. Small- and mid-sized banks gained an opening to build deposits thanks to the Federal Reserve, which has throughout Read More
Fintech’s positives for delivering deposits
We’re not saying that customers these days are lazy. Really, we’re not. But maybe, just maybe, they’re feeling a little entitled. Okay. Maybe a lot entitled. But really, you can’t blame them. As with every other aspect in today’s “get-it-now” society, customers want their transactional lives easy as pie: not just any pie, mind you, but one Read More
From deposit competition to determined direction
Call it the slowwwwww squeeeeeeze: Competition for deposits has produced tremendous force—the kind steamroller drivers would envy—as big banks, fintechs and smaller banks feel the pressure to collect the money they badly need to fund loans. And as the Federal Reserve continues to raise interest rates, so rates on savings accounts and CDs have moved higher Read More
Winning beyond share of wallet: What’s your relationship value?
Bankers invest so much time and attention toward driving “share of wallet” (SoW) that many tend to treat it as the de facto metric for measuring return on investment (ROI) in digital technology. But this constitutes just part of the story. Banks often miss another piece that’s just as important—if not more. It happens before share of Read More
How companion deposit accounts attract the capital banks need
If timing is everything, then score one for depositors. The time is right for them to get what they’ve searched for: higher yields without commitment. “Whoa, hold on now,” bankers respond to such suggestions. Banks can’t throw around high yields for deposit accounts without getting something valuable in return. While that rings true, trying to tie up Read More
A core issue: Surgically replacing core banking platforms
The core banking system is the underlying system of record for credits and debits that maintains transactions, histories and balances. The core platform is both the map and the compass that link a bank’s operations, clients and correspondents together as they transact. When core banking systems were originally put in place, they were considered ideal for the Read More