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These days, deposit growth is a boon for consumers and a burden for banks — we see it in the data over the last 18 months. Most demand deposits have a low cost of funds, but are prone to “flight,” especially as consumers reinvest.
Here’s the good news: the volume of deposit growth is massive enough that it would take a truly unprecedented exodus of dollars to cause concern. That means you can shift your focus to growing loans.
Now is the time to market for loans.
Thanks to COVID, 22% of consumers intend to switch banks, and the opportunity for community banks to acquire new customers is ripe.
- When a consumer opened a Kasasa checking account, they were 68% more likely to bring in larger loan balances.
- When a consumer opened a Kasasa Loan, they brought in 52% more in loan balances.
It’s possible to attract highly engaged consumers if you have the right products and marketing strategy.
Flexibility is key — paid search, programmatic media buying, and direct mail are must-have tools.
If you’re already using these three channels, that’s excellent. One of the most important factors for making these channels drive growth is continuous optimization. Dive into the numbers with your team or your agency and find ways to make the program run more efficiently.
- Paid search: This tactic helps you reach consumers who intend to purchase. They’re searching on Google and you want to get their attention in the moment when their intent is strong. 90% of loan and mortgage customers start their journey online. Your products should be the ones they see first, ideally in the top four search results returned by Google for your geographic area.
- Programmatic media buying: While you may be familiar with digital display ads, programmatic media buying encompasses conventional display ads, along with video and audio streaming. It also covers retargeting, which allows you to “follow” a consumer with ads as they navigate the wider internet.
- Direct mail: Although people tend to love or hate direct mail, we’ve had consistent and impressive success with direct mail. Thanks to COVID, everyone has learned how to engage with QR codes. QR codes are a simple, elegant way to bridge the gap between a piece of mail on the kitchen table and your digital experience.
Your marketing is only as effective as your onboarding experience.
Marketing channels allow you to drive digital and physical traffic. When you back that up with excellent digital and frontline experiences, you close the loop and create happy borrowers. If your online account opening experience and customer support don’t perform, you won’t see the results you hoped for.
Every marketing dollar matters.
Once you can prove the relationship between your marketing and account opening (something we do with all our clients), then you can justify more budget, because every dollar spent marketing translates into many more dollars in loans.