Deposit Solicitation

DEPOSIT SOLICITATION BY: Faisal kamran

DEPOSIT SOLICITATION Core product of Bank OR Life Blood of Bank OR Management’s tool to harass employees

DEPOSIT SOLICITATION TYPES OF DEPOSIT: 1. Current Deposit. 1. Saving Deposit. 1. Term Deposit.

DEPOSIT SOLICITATION: Core Deposits They are stable, low cost and also the basis of banking relationship. By asking people “where do you bank?” People typically reply by telling you where they have their primary transaction account. Regardless of where their millions are stashed. Primary deposit account is critical to a bank’s success. These basic deposit accounts represent reliable sources of fee income, cross sell opportunities, and referrals to new customers.

DEPOSIT SOLICITAION:

Profitable customers “share their wallets” among two, three, or sometimes more financial institutions.

Factors that impact Bank’s ability to acquire and retain core deposits: •

Defining the product line

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Implementing integrated technology

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Supporting deposit operations

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Building a sales culture

Factors that impact Bank’s ability to acquire and retain core deposits: •

Training employees

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Creating effective referral processes

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Establishing incentive structure

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Segmenting the customer base

Factors that impact Bank’s ability to acquire and retain core deposits: •

Monitoring the competitive environment

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Launching a comprehensive marketing plan These Factors sum up into four primary functions within the bank

PRIMARY FUNCTIONS • Products Do you have a competitive product line? Can you define what differentiates your bank on each of its products?

PRIMARY FUNCTIONS • Technology and Operations Your front line employees need efficient and effective technology in order to serve their customers, open new accounts efficiently and capture pertinent customer information. At the same time they need to see a customer’s relationship with the bank at a glance, and your marketing team needs to be able to reliably determine household, customer, product, and business line profitability.

PRIMARY FUNCTIONS • Training and Sales Support When a front-line employee can see the customer’s relationship, they should also be equipped to cross sell appropriate products and services. Employees should have a thorough understanding of all the bank’s offerings and be able to identify the next most appropriate solution.

PRIMARY FUNCTIONS • Marketing. An effective core deposit marketing strategy requires a segmented customer base and a clear understanding of customer profitability. analyzing customer needs, segmenting and targeting the potential customer base, acquiring customers, then servicing and retaining those customers.

DEPOSIT SOLICITAION:

KNOW BEFORE YOU GO.

COST OF FUNDS/DEPOSITS: •

Profit Rate offered/ cost of borrowing.

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Statutory and Liquidity Requirements.

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Administrative Expenses.

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Management fee etc.

PREFERRED DEPOSIT MIX:

This refers to the OPTIMUM proportion of various types of deposits aiming at the principal of matching and Profit Maximization.

THE END