1. Deposit Armageddon or Opportunity? How Banks Can Thrive In A Rate War
Author: James White (Total Expert) and Matt Doffing (The Financial Brand)
Date: January 12, 2023
Executive summary: One of 2023’s biggest themes — outside of maybe the banking crisis in March and April — was the rate war for deposits between financial institutions. While its boil has since calmed to a simmer, the “Deposit Armageddon” will continue to reverberate in 2024. If you want to know how to survive, check out our story on how to win a rate war.
A key takeaway: Four out of five Baby Boomers may not be financially prepared for retirement, according to McKinsey & Co.
2. 8 Deposit-Raising Tactics You Might Not Be Trying
Author: Steve Cocheo (The Financial Brand)
Date: March 15, 2023
Executive summary: Tried-and-true deposit-driving tactics are increasingly old-and-busted. It’s time to upgrade your acquisition toolkit.
A key takeaway: Even if your institution offers a rate or package that compares favorably with online competitors, requiring a visit to a branch to open the account represents more friction than some consumers will tolerate these days.
3. How Citizens Bank Became the U.S. Home Equity Leader
Author: Steve Cocheo (The Financial Brand)
Date: June 15, 2023
Executive summary: Citizens Bank is not by any means the new kid on the home equity credit block, but the Providence, R.I.-based institution has grown its home equity levels to record levels in two consecutive years (leading up to the publishing of this article in March). How did it do it? Read Steve’s full piece on how Citizens reached a peak as the hottest home equity lender.
Quotable: “We don’t write a single HELOC without an underwriter manually reviewing the file.” — Adam Boyd, Citizens Bank
4. Deposit Competition Is On, But Should CDs Still Be the Go-To?
Author: Steve Cocheo (The Financial Brand)
Date: March 6, 2023
Executive summary: Did you miss the charts showing where deposits and overall funding costs could go, all the way through 2025? If you clicked on this article to read the top deposit stories from 2023, and see where deposit trends may go in 2024, then go no further than this piece on rising rates and deposits.
Quotable: “To reach the younger generations, brands should be targeting them on the channels they are most likely to be on, which would be paid social or online video and display.” — Marisa Frys, Comperemedia
5. As a Deposit Strategy, ‘New Money Only’ Rate Offers Are a Poison Pill
Author: Neil Stanley (The CorePoint)
Date: May 15, 2023
Executive summary: There are a lot of fine lines in banking, but fewer more prevalent than the balance between retaining existing customers and attracting new ones. But fear of rising funding costs may ultimately and paradoxically result in higher funding costs — and lost profits and franchise value — all while alienating people who’ve banked with your institution for years.
A key takeaway: Serious margin, profitability and reputation risk result from assuming everyone is a rate shopper or that no one wants a term deposit at a competitive rate compared to their near-zero priced savings account.