Generating Deposits - PowerPoint PPT Presentation

Loading...

PPT – Generating Deposits PowerPoint presentation | free to download - id: 5b0c24-Y2IwN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Generating Deposits

Description:

Generating Deposits New Tactics For Success Kevin Stang, Sr. Strategic Advisor, Raddon Financial Group Overview Product and Price Checking is Key Money Market ... – PowerPoint PPT presentation

Number of Views:118
Avg rating:3.0/5.0
Slides: 38
Provided by: MicheleTh1
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Generating Deposits


1
Generating Deposits
  • New Tactics For Success

Kevin Stang, Sr. Strategic Advisor, Raddon
Financial Group
2
Overview
  • Product and Price
  • Checking is Key
  • Money Market Innovation
  • CD Strategy
  • Place and Promotion
  • Drive Delivery
  • Pursue Potential
  • Leverage Loyalty
  • Tackle Timing

3
Product Design and Price
  • Offer Products That Sell!

4
Checking
  • What do your Members need?
  • Consumer Segmentation
  • Sample Product Menu
  • What is your draw?
  • Incentives
  • Features to Highlight

5
RFG Consumer Segments The Key Ingredient in
Determining Potential
18-34
35-44
45-54
55-64
65
Upscale 14
100,000
Credit Driven 14
Middle Income Depositor 15
Middle Market 22
30-99,999
Less than 30K
Fee Driven 13
Low Income Depositor 22
Segment Fee Driven Credit Driven Middle
Market Low Income Depositor Mid. Income
Depositor Upscale
Age Definition 18 to 44 18 to 34 35 to 54 45 or
Older 55 or Older 35 or Older
Income Definition Less Than 30K 30K or
More 30K to 99,999 Less Than 30K 30K to
99,999 100K or More
of HHs 13 14 22 22 15 14
Avg. Age 31.2 28.8 45.3 67.2 67.8 52.1
Annual Inc. 15,681 60,318 64,088 16,401 60,
216 112,500
6
FREE CHECKING HAS DECLINED IN IMPORTANCE WHILE
INTEREST RATES HAVE INCREASED IN IMPORTANCE
2007 RFG National Consumer Research
7
HIGH-RATE CHECKING ACCOUNTS ARE PREFERRED BY THE
UPSCALE SEGMENT
2007 RFG National Consumer Research
8
RFG Consumer Segments The Key Ingredient in
Determining Potential
18-34
35-44
45-54
55-64
65
High Rate Checking
100,000
Advantage Checking
Interest Checking
Relationship Checking
30-99,999
Less than 30K
Free Checking
Free Checking
Segment Fee Driven Credit Driven Middle
Market Low Income Depositor Mid. Income
Depositor Upscale
Age Definition 18 to 44 18 to 34 35 to 54 45 or
Older 55 or Older 35 or Older
Income Definition Less Than 30K 30K or
More 30K to 99,999 Less Than 30K 30K to
99,999 100K or More
of HHs 13 14 22 22 15 14
Avg. Age 31.2 28.8 45.3 67.2 67.8 52.1
Annual Inc. 15,681 60,318 64,088 16,401 60,
216 112,500
9
Checking Menu
  • Free Checking Typically Free with a Direct
    Deposit, or Totally Free if your branch expense
    is low.
  • Advantage Checking Rewards the member based on
    the level of account usage. Rewards include
    Free Foreign ATMs, Free Bill Pay, Debit Rewards,
    etc.
  • Relationship Checking Rewards the member for
    having additional accounts. Rewards include
    Advantage Checking Rewards plus Loan Rate
    Reductions Deposit Rate bonuses.
  • Interest Checking - Offers a fair rate of
    interest for a low minimum balance (typically
    starts as low as 1K )
  • High Interest Checking Offers a high rate of
    interest for a high minimum balance (typically
    10K )

Key Issue Do we need a special offer to attract
checkers ?
10
PROMOTIONAL ITEMS PLAY A BIG ROLE IN DECISION
MAKING PROCESS FOR THREE OUT OF 10 CONSUMERS
2007 RFG National Consumer Research
11
CASH MOST IMPORTANT PROMOTIONAL ITEM IN DECISION
MAKING PROCESS
2007 RFG National Consumer Research
12
Checking Draw
  • Offer a Cash incentive
  • Overcome the top barriers to opening a new
    checking which are
  • Locational Convenience
  • Ease of Switching
  • Easy ATM Access

13
Money Market
  • What do your Members want?
  • Some are Rate Sensitive
  • High Balance Households
  • Upscale and some Mid-Depositors
  • Others are not
  • Geographically Convenient Households
  • Very Satisfied Members
  • What is your draw?
  • Teaser Rates are best in todays declining rate
    environment

14
DEMAND IS GREAT FOR HIGH-RATE DEPOSIT ACCOUNTS
2007 RFG National Consumer Research
15
MMA DESIGN STRATEGY
  • MoneyManager MMA
  • 4 Tiers
  • 10,000 2.50
  • 25,000 3.35
  • 50,000 4.05
  • 100,000 4.45
  • Advantages
  • Institution rewarded for managing lazy money
  • Built in promotional growth strategy

16
MMA DESIGN STRATEGY
HOW TO USE THIS STRUCTURE TO GROW NEW DEPOSITS
17
Certificates
  • Understand this Products Purpose
  • Fund Loan Growth
  • Fulfill a member need
  • Adhere to this Purpose
  • Stay Short term
  • Offer Periodic Specials

18
MINIMUM INTEREST RATES REQUIRED TO MOVE ACCOUNTS
2007 RFG National Consumer Research
19
Product Delivery and Promotion
  • Effectively Communicate your Products and Services

20
DELIVERY which consumer is available to accept
your services?
A
B
21
BRANCH CONVENIENCE REALLY MATTERS. AS OVERALL
BRANCH CONVENIENCE DECLINES, DEPOSIT BALANCES
DECLINE.
2007 Credit Union CEO Strategies Data
22
Delivery Summary
  • Branches are the 1 Key to Success for Deposit
    Growth.
  • Use your Branches as a Deposit Billboard
  • Target Local Members for Deposits
  • If you have a strong brand, Target Non-Member
    Upscale and Mid-Depositors
  • Offer Balance based incentives for your Staff
  • Measure Deposit growth at the Branch level and
    account for variances on convenience and
    demographics

23
POTENTIAL Which consumer is capable of
accepting your services?
A
B
24
CONSUMER SEGMENT OVERVIEW
18-34
35-44
45-54
55-64
65
Upscale 14
100,000
Credit Driven 14
Middle Income Depositor 15
Middle Market 22
30-99,999
Less than 30K
Fee Driven 13
Low Income Depositor 22
Segment Fee Driven Credit Driven Middle
Market Low Income Depositor Mid. Income
Depositor Upscale
Age Definition 18 to 44 18 to 34 35 to 54 45 or
Older 55 or Older 35 or Older
Income Definition Less Than 30K 30K or
More 30K to 99,999 Less Than 30K 30K to
99,999 100K or More
of HHs 13 14 22 22 15 14
Avg. Age 31.2 28.8 45.3 67.2 67.8 52.1
Annual Inc. 15,681 60,318 64,088 16,401 60,
216 112,500
25
322
26
Potential Summary
  • Segment Households that are most likely bring you
    deposits
  • Target the Mid-Income Depositors and Upscale
  • Target existing high balance depositors
  • Segmentation has many benefits
  • The CU will appear to be Relevant in the
    members minds.
  • By increasing the amount of letters you send,
    members will Remember your message, and feel it
    is an important one.

27
LOYALTY Which consumer is willing to accept
your services?
A
B
28
DEPOSIT BALANCE CONTROL INCREASES AS MEMBER
LOYALTY INCREASES
Deposit Balance Control by RFG Loyalty Index
High Loyalty Mid Loyalty Low Loyalty
Deposit Balance Control 38.7 33.0 27.6
The RFG Loyalty Index is a measurement RFG
created using Member Survey data. It is a blend
of Satisfaction, Purchase Intent, and Willingness
to Refer the CU. Balance Control is the fraction
of member business the credit union owns.
Source 2007 CEO Member Survey
2007 RFG Member Survey Data
29
DEPOSIT BALANCE GROWTH INCREASES AS MEMBER
LOYALTY INCREASES
Deposit Balance Growth by RFG Loyalty Index
High Loyalty Mid Loyalty Low Loyalty
Deposit Balance Growth 8.9 6.8 3.2
Source 2007 CEO Strategies
2007 RFG Member Survey Data
30
RFG Research Reveals The Key Ingredients in
Determining LOYALTY
  • DEPOSITS
  • Over 5000 in Deposits
  • Within Branch Market
  • LOANS
  • Current Borrower
  • Previous Borrower
  • DEPOSITS or LOANS
  • Greater than 3 Services
  • Active Checking
  • Credit Card

31
Loyalty Summary
  • Make a strong effort to communicate with
    households that intend to bring you business.
  • If you dont ask for the business, someone else
    will.
  • Identify loyal members using product and channel
    data.

32
TIMING Which household is ready to accept your
mortgage services?
A
B
33
(No Transcript)
34
(No Transcript)
35
HERE IS A SAMPLE SEASONALITY REPORT YOU MIGHT USE
INSTEAD OF NATIONAL DATA
36
Timing Summary
  • Market when households are ready to open your
    products
  • Batch process event based marketing calendar
  • Identify and target households of any high
    balance Maturing CDs, Promotional CDs, or other
    Hot Money
  • New Households over the age of 45 should be
    targeted for deposit services.
  • Go after First Time Depositors for other services
  • Recently Moved Households may be ready to leave
  • Create a season based marketing calendar

37
Overall Summary
  • Product and Price
  • Checking is Key
  • Money Market Innovation
  • CD Strategy
  • Place and Promotion
  • Drive Delivery
  • Pursue Potential
  • Leverage Loyalty
  • Tackle Timing
About PowerShow.com