8 ways to grow deposits by empowering business bankers
As competition for deposits continues to pick up, putting boots on the ground to proactively seek new business relationships will becoming increasingly important. To go out and get the business, some leaders are trying out new roles — specialists who focus solely on acquiring business banking accounts.
Deposit growth is hard, and it’s only going to continue getting harder. Non-interest-bearing deposits at banks and savings institutions declined by 2.3% in the third quarter of 2018, the largest quarterly decline since 2013, according to FDIC.
As the frenzied race for deposits continues, it won’t be long before financial institutions feel the pressure to start paying interest on business checking — something they’ve preferred to avoid for years. Not so long ago, the abundance of business checking accounts — a low-cost source of fuel for lending — was a welcome shot in the arm for boosting an institution’s profitability.
Can this be forestalled? With such intense competition for deposits and profitability erosion looming, banks and credit unions should be looking for an edge. They may find that edge in becoming more aggressive by sending someone to seek them out deposit relationships from businesses instead of waiting for these new accounts to just waltz in through the front door.
Business Development Officers (BDOs) could provide the next best method for capturing new banking relationships and with it those elusive — but critical — noninterest-bearing deposits. And never discount the power of the human touch in fostering long-term customer relationships.
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