Driving Up Deposits

​The list of "strategies" is curious.  Many of the items listed seem more like categories and attributes of deposits rather than strategies.  Strategy is about anticipation and preemptive action in relation to the threats and opportunities.  Where can we seize opportunities to anticipate depositor needs and wants in ways that clients notice, appreciate, and find sufficiently compelling to switch and stay?  Strategies introduce a package of enhanced product design; pricing; selling practices; and management to differentiate our offers from competitors by producing more value to the depositor while consuming less value to produce, promote, and deliver.  Too many bankers fall into a trap of believing that price is the primary driver of volume.   Price changes certainly can alter the volume of deposits received.  However, real strategy grows deposits without paying more for them.  Changing product design and enhancing selling and management practices to win and retain more volume without modifying net portfolio price is the key to success in all aspects of our business.

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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 12-21-2017 16:09
From: Barb Rehm
Subject: Driving Up Deposits

Liquidity is never far from a banker's mind so we surveyed CEOs and CFOs about their strategies for increasing deposits.

Our Bank Executive Business Outlook Survey, conducted online during October 2017, found bankers looking to boost liquidity are overwhelmingly focused on increasing core deposits.

Of the 389 bankers who completed the survey, nearly 20% said they will use higher rates to attract core deposits. The next most popular strategy, at 16.5%, is winning the cash management business of commercial customers. Coming in third, at 13.8%, is deepening relationships with their customers. Beyond core deposits, bankers responding to the survey said they planned to either use more wholesale funding or turn to new or improved deposit products to increase liquidity.

What is your bank doing to attract funding?

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Barb Rehm
Promontory Interfinancial Network
Arlington VA
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