Five tips for gathering deposits

1. Go Organic!

An annual survey of community bankers by the American Bankers Association revealed that 60 percent of those surveyed said they see     their local market as having too many bank branches.  However, 76 percent say they continue to see branch expansion as their main avenue of growth.  Perhaps the most obvious, but often overlooked, avenue to growing deposits is within an organization’s existing customers.  Identify gaps between actual and potential performance, and employ an organic growth strategy to capitalize on wallet share potential of current customers.

2. Be Valuable

Industry trends point to Differentiation and Strategic Messaging as defining factors in both gathering deposits and sustaining long term future growth.  The key to success is developing and/or communicating a real value proposition to the customer; the value must be considered “real” in the eyes of the customer.  The development and communication of a value proposition with differentiation and messaging strategies will allow institutions to stand out from the competition, and contribute to positive deposit gathering results. 

3. Fill the Need

Look beyond the typical and expected product offerings and identify opportunities that truly satisfy customer needs.  Packaging products by life stage has been one strategy employed by institutions across the country.  This strategy identifies customers’ needs by life stage and recommends products based on what others in that life stage or similar situation are using.  Listen to the customers; customers in different markets may have very different needs, so identify those needs and ensure that those needs are fulfilled.

4.Target Specific Segments

Some market segments provide better opportunities for gathering deposits than others.  A segmentation strategy should be employed to target those segments that show the greatest opportunity for gathering deposits.  Segmentation allows for an institution to focus on groups that fit with the institution’s niche focus, and can also contribute beneficially to a differentiation strategy. 

5. Remote Capture

Thinking outside the box is one of the best ways to achieve desired results.  A relatively new concept to the banking world, which is catching on quickly, is remote capture of deposits.  This concept relies on technology to allow commercial customers to make deposits without actually visiting a bank branch.  Convenience is the key benefit for the customer, while institutions employing a remote capture program are adding value and gathering deposits at the same time.