To grow deposits, build on the onboarding experience
Today's busy consumers don't focus on their banking any more than they have to. When you can get them sitting down across from you, that's the time to build up the relationship. You'll never have them so close to you so willingly— make the most of the opportunity. In the meantime, take digital advertising seriously if you want to continue reaching them.
Financial institutions across the U.S. have seen deposits stagnating or diminishing. The problem this poses to financial institutions is obvious. The solution to that problem? Not so obvious.
Sometimes your best opportunities to improve are staring you straight in the face. What percentage of your new accountholders actually become engaged with your bank or credit union? What are you doing differently from others as part of the account opening process?
During my time at a credit union, before I moved back into fintech, we measured accountholder engagement by whether or not we had received their direct deposit relationship, payment activity on the account, and the number of products the accountholder had adopted. We found that we were far more likely to become the primary financial institution of our account holders if they moved their direct deposit over as part of their account opening experience — not the next day, not a week after opening their account. They needed to switch it over right at the time of account opening.
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