Archive for December, 2009

Banks Report Solid Growth in Deposits and New Customers!

December 15, 2009   Posted in Uncategorized | No Comments | Email This Post | Print This Post

On December 2, 2009, community bankers focused on growing core deposits and acquiring new customers in 2010 gathered in Marlborough, MA, to discuss new strategies, tactics and products.  The Massachusetts Bankers Association and First Wellesley worked together to deliver the end-of-year seminar.   First Wellesley’s role was to design the sessions, obtain speakers, deliver a 2010 outlook and moderate session panels.  The MBA had to do all the hard work planning, announcing and managing the seminar.

Here are a few insights I picked up during the day:

From our SurveyMattersTM polling session of attendees:

  • 2009 has been a good year for new customer acquisition for the banks in attendance
  • The majority of banks, six out of ten, added more customers this year as compared to 2008
  • Half the bankers grew core deposits more than 6 percent as compared to last year
  • The vast majority of bankers also project higher core deposit growth in 2010
  • Community bankers’ concerns include deposit price competition, big banks’ technology advantages and extensive branch and ATM networks and the risk that Gen X and Y consumers will pursue high-tech banks

Here’s an important “decision maker” I heard about from our end-of-day banker panel: women, specifically their role and influence during the bank and deposit product selection process.   One banker shared his bank’s focus group research findings that indicated that women are responsible for 80 percent of all financial decisions made by households.  Another banker said that a survey of her bank’s junior board of directors, high school students, indicated that 80 percent of the junior directors opened up their first bank account because of their mothers. Mothers selected the bank and the timing of the child’s first deposit account.

I, not having children, was unaware of the primary importance of mothers in the Gen Y bank selection decision.  For Gen Y prospects, it appears that there are two consumers making a buying decision – the high schooler and the parent.   I suspect the parent is the primary consumer for this sale.  Banks would be wise to figure out the deposit account features that most appeal to the parent – electronic linking to the parents’ account, transaction and balance alerts and electronic transfers between accounts are three that come to mind.

One natural strategy, based on this parental dynamic, is to focus on marketing to and regularly communicating with mothers of middle and high school students to obtain more Gen Y customers.  Forms of communication could include branch, drive-thru, online, event and other types of marketing outreach.  The second natural strategy is to emphasize marketing to and providing practical value to women of all ages to acquire new customers and grow core deposits.  These strategies may guide a bank’s channel investments, service levels, product features, messaging and other elements of delivering financial services to consumers.

About Jim Jones

James D. Jones, a national speaker for 16 years, has presented to financial services and mortgage audiences for organizations of all sizes.More >

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