The $2.5 Trillion Question: How Will Your Bank Retain Maturing Deposits?
With over $2.5 trillion in CDs set to mature in the coming year, banks have an opportunity to capture these deposits—but doing so effectively will require more than just competitive rates. Financial institutions must utilize engagement technology to better understand customer needs and preferences, going beyond historical data to craft personalized experiences.
The challenge many banks face is turning vast amounts of customer data into actionable insights. Consumers today expect the same level of hyper-personalization in their banking interactions as they receive from platforms like Amazon. In fact, a survey by Boston Consulting Group found that more than 60% of consumers desire this level of tailored engagement in their banking experience.
How Engagement Technology Provides Value
Engagement technology offers a path forward by integrating a bank’s existing data with third-party appends, and even real-time transactional insights to predict and meet customer needs. By tapping into this information, banks can proactively offer personalized services, such as customized CD renewal options or tailored savings products, at the right moment.
The power of engagement technology lies in its ability to address key pain points for financial institutions:
Customer Retention: As CD holders near maturity, personalized engagement—rooted in behavioral and transactional data—can improve loyalty and prevent customers from moving their funds elsewhere for higher returns.
Optimized Communication: Engagement technology enables banks to deliver relevant, timely messages that resonate with each individual, rather than relying on broad, one-size-fits-all campaigns. This ensures that customers feel valued and understood.
Predictive Analytics: AI can forecast customer behavior, enabling financial institutions to anticipate market changes and adjust their strategies accordingly. This is crucial for banks with limited time and fluctuating budgets.
Reduced Cost of Funds: By offering personalized options at critical moments, engagement technology helps banks retain deposits at competitive rates, lowering the cost of funds compared to acquiring new customers from scratch.
Increasing Share of Wallet: Beyond retaining maturing deposits, engagement technology plays a critical role in increasing a bank’s share of wallet within its customer base. By using appended data and predictive models, banks can pinpoint opportunities with high-asset customers who may have small balances at the bank or identify customers going through life events that prompt specific product needs.
Tools at Your Disposal with Engagement Technology
Engagement technology provides a suite of tools that empower banks to engage with their customers more effectively and efficiently:
- Dashboards showing monthly account opening and closing activity, allowing for quick identification of trends.
- Data append and custom segmentation to provide detailed insights into customer behaviors and opportunities for targeted engagement.
- Predictive models and actionable communication segments to offer personalized experiences based on customer data.
- Interactive dashboards that profile customers by product usage, making it easier to refine marketing and product strategies.
- Automated marketing programs that deliver sophisticated, personalized messaging across multiple channels, reducing manual effort while maximizing reach.
- Results dashboards offer comprehensive reporting for leadership, helping to track the success of engagement strategies and make informed adjustments.
Positioning yourself as a trusted partner.
Engagement technology equips banks to not only retain deposits but also build stronger customer relationships. By delivering timely, personalized experiences, banks can position themselves as trusted financial partners while capturing opportunities from maturing CDs. These insights allow financial institutions to meet customer needs in real-time, providing tailored solutions that enhance loyalty and expand their share of wallet.
For those looking to streamline and elevate their strategy, EngagementIQ by WordCom offers a comprehensive platform to maximize data, refine engagement, and ensure long-term growth through personalized, automated marketing.
With over 40 years serving banks and credit unions, WordCom developed EngagementIQ to offer a dual advantage: the efficiency of machine data processing and predictive analytics, combined with the emotional intelligence and creativity of seasoned marketers.
