Data Driven Marketing

6 Strategies to Maximize Deposits for Financial Growth

6 Strategies to Maximize Deposits for Financial Growth

June 05, 2024 | Ian Wright

We live in a complex world of finance where every dollar counts. That is why understanding deposit dynamics is key to unlocking growth opportunities. According to Equifax analytics, about 10% of households in the United States hold over 60% of all deposits.¹ That's a staggering statistic. This represents a vast potential for financial institutions to tap into these deposits and drive growth.

Deposit growth is a top priority for many firms today. With consumers evaluating their options and firms seeking to increase liquidity, they all need actionable solutions to drive deposit growth effectively and efficiently. That's where Equifax deposit-gathering solutions come into play. 

Here are six strategies marketers can use to help banks grow deposits. 

1. Capture more deposits from current customers 

Identifying current customers with significant deposits held outside your firm is a crucial step. This can be achieved by leveraging our proprietary wealth data. We can help you pinpoint these hidden deposits and devise strategies to capture them. For example, one firm used our deposit estimates to identify over $14 billion in deposits held by current customers at other firms. That's a significant opportunity waiting to be seized.

2. Gain new consumers with high deposits

It's not only about retaining current customers; it's also about acquiring new ones with substantial deposits. By enhancing your prospect database with total estimated deposit balances, you can target prospects with the most deposit opportunity. Segmenting prospects based on their deposit preferences, such as CDs, money markets, or interest checking, allows for tailored marketing efforts. Having tailored marketing efforts will help you resonate with potential customers. 

3. Target consumers with near-term asset growth potential

Targeting consumers with near-term asset growth potential can yield substantial dividends. By identifying households expected to experience high growth in assets, you can establish relationships that extend beyond mere deposits. Similarly, focusing on affluent young consumers who hold significant deposits can pave the way for long-term financial partnerships.

4. Personalize your outreach

Personalizing outreach is another critical aspect of deposit-gathering campaigns. It is important to  understand the preferences and behaviors of your best deposit customers. That way you can tailor marketing messages and creative to attract more of the right customers. This targeted approach ensures that your efforts resonate with your audience.  This can lead to higher conversion rates and increased deposits.

5. Boost digital efforts to maximize marketing budgets

In today's digital age, maximizing marketing budgets requires a robust digital strategy. That is why it is important to:

  • Segment email prospect lists based on total deposit estimates. This allows for more effective targeting. 

  • Append current emails to existing customer lists. By doing this you help expand your reach. 

  • Fuel online deposit-gathering campaigns with deposit-based targeting segments. This ensures that your efforts reach online audiences that are more likely to be a good fit for your offers and promotions.  

A case study highlights the effectiveness of this approach, with a credit union leveraging email to reach prospects likely to have substantial deposits at other firms. The result? Over $32 million in new deposits and double the number of new CD and money market accounts compared to the previous year.

6. Identify markets with high deposit growth opportunity  

Identifying markets with high deposit growth opportunity is the final piece of the puzzle. By analyzing deposit insights at the market level, you can pinpoint regions with growing deposits and determine your share of deposit dollars. This allows for targeted advertising and branch expansion efforts that maximize growth potential.

Focus on Forward

Maximizing deposits requires a comprehensive approach that encompasses data-driven insights, personalized outreach, and digital savvy. By leveraging these strategies effectively, financial institutions can unlock untapped deposit growth opportunities. Unlocking deposit growth opportunities can position financial institutions for long-term success in a competitive market landscape.

In an uncertain economy, it can be hard to find the best deposit opportunities. We are here to help you move through changing and difficult dynamics, adapt with confidence, and focus on moving forward.

Get even more in-depth insights around growing deposits in our eBook. For the latest financial knowledge and trends, be sure to sign up for our next Market Pulse webinar. 

1. Equifax data, June 2023

Ian Wright

Ian Wright

Chief Insights Officer, IXI, Data-Driven Marketing

Ian Wright is a product and strategy executive with more than 20 years of experience driving and deploying successful DaaS and SaaS solutions. He currently manages Identity and Insights portfolios for Equifax’s marketing business. Wright previously led product strategy and innovation efforts across marketing, addressab[...]