The Big Game of Banking in 2023 – Competition for Deposits
The FDIC reported a $370 billion decline in deposits in the second quarter of 2022. Now, deposits are still well above pre-pandemic levels. But while large commercial banks are flush with cash, everyone else is working to rebalance their LDR ratios. The competition for deposits is now fierce.
Clients are less loyal than they used to be. They're willing to call an audible and take their business to an FI that can give them the level of service, accessibility, and experience that they’re looking for. And that only makes perfect sense, but they will have a primary financial institution in which most of their deposits will end up – and you can win their favor. So, as the quarterback, how can you propel your FI to becoming clients‘ go-to FI for their deposits?
To win the game, you need a star-studded lineup and big plays that clients can always count on for instant and accurate service. Here are the All-star players you need to create an efficient team that wows everyone:
- Self-Service – The Offensive Linemen. They put in work before, during, and after hours to handle less-valuable transactions and keep your staff open for big plays. You can even expand your self-service capabilities to fulfill nearly every transaction a teller would by using GENIX.
- Universal Associates (UAs)– The Wide Receivers. When you want to make a big play and change the game, you turn to your UAs. Untethered staff that stay engaged and, on the move, consistently scoring touchdowns with clients by handling their every need anywhere in the branch through a portable core-integrated teller interface.
- Integrated Fintech – The Special Teams. Whether your desired Fintech integrations are internal or consumer-facing, score some easy points with clients and employees by improving efficiency and reducing costs through tech.
- Personalized Advisory Services – The Coach. Clients want a friendly expert in their corner, informed by big data, and powered by AI and advanced analytics, to help them score some financial touchdowns.
- Digital Channels – The Defense. Banking’s #1 draft pick this year, upgrade your online and mobile banking platforms through cyber-secure online onboarding and a great new UX for both online and mobile channels. These advancements will get you back in the game with current and potential clients and can reduce operating costs by 30-50 percent.
- Convenient Branch Locations – The Tight End. The unsung hero, unless you are Gronkowski, that’s always there in a pinch. This consistent big-game performer finds the open spaces close by for an easy option to pick up some good yards (and revenue).
- Instant Transaction Posting – The Running Back. Every team needs a powerful and agile speed merchant that makes an instant impact and the impossible possible – in this case, through the direct core integration of your hardware assets.
- Branch Hardware Analytics – The Offensive Coordinator. Get a bird’s eye view of the game with a digital dashboard with IQ. A proven difference maker, it consolidates data and gives you actionable insights into your branch hardware to keep tech fully operational for clients and staff.
But even a team at the peak of its powers needs creative and game-winning plays. You may not be able to offer the best interest rates on deposits, but you surely have other strengths that you can use to your advantage. Here are critical tactics to gain the advantage over your opponents and secure victory.
THE KEY PLAYS
Create a Better Experience for Everyone
Remove the friction and effort from the client and employee experiences to maximize convenience.
- Optimize your in-branch processes to cut costs and headaches for your branch staff. This easy fix is often overlooked, even though it provides so much value. – Use direct core integrations to achieve unprecedented levels of speed and convenience no matter what hardware you’re using. You can eliminate teller lines, provide the hotly demanded retail banking experience, shift to a flexible cloud-based infrastructure, and so much more! Clients and employees will become life-long fans of an FI with this smooth new experience. Plus, you get to enjoy the decreased risk and cost benefits of real-time automated balancing and reconciliation.
Take the Competition Down
Force interceptions and turnovers to pick up more wallet share.
Client satisfaction doubles when they receive higher-level, advisory-style interactions with staff, like giving advice, proactive offerings and needs assessments. (FMSI)
- Optimize your digital channels so that every interaction a client has with your brand is positive. 47% of the US population between the ages of 15-50, and digital excellence is now a prerequisite to winning their business. Provide the MVP performance with every service your clients could need in one place. Fintech companies may have beaten you to the punch of using newer technologies to supply simplified services like mobile payments and consolidating financial management strategies, but now you can step up your digital capabilities through in-house development or partnership. Then one-up competitors even further by providing educational content like how-tos, best practices, thought leadership, and more resources that improve your website’s utility and search engine optimization for potential and current clients alike.
The digital-only FIs are not meeting clients’ complete set of needs — the branch is still important. 62% of consumers prefer to use banks or credit unions with a physical presence. (Forbes)
Become a Banking Hall of Famer
Does this sound great, but not quite in line with your original game plan for the year? You may need to call your own audible and switch up your tech investment strategy. It’s time to invest in your new consumer-centric transformation. Not only are you leading your FI, but you can also lead the entire industry into a new and improved way to bank. You’ll go down in the Hall of Banking Fame for achieving new levels of efficiency and lifting the standard for banking experiences.
And you already have the partner and solution you need to become a champion and legend for your FI. CFM has created the integrations and playbook needed for your branch network to establish a new era of competitive dominance in the banking industry. Your integration specialist is ready to help you raise your FI’s game.