Striking a balance between controlling costs and building customer loyalty has gotten harder in recent years as rates have risen and deposit competition has increased. Many banks have launched high-yield savings products to attract new customers, but they can't offer high rates to everyone without undermining the economics of banking and restricting credit availability.
Instead of developing customer strategies based on deposit rates, banks should focus on tailoring communication and services to customers based on their transaction patterns, life events, financial goals, and other needs, this article says.
How do you think about the trade-off between customer loyalty and deposit costs? What's worked for your institution (and what hasn't)? Any new technologies you've found particularly useful?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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