It’s Time

I know many financial institutions are rightly concerned about a loss of deposits when the Fed increases rates. And based on current projections, the vast majority of people in the know think rates will rise next week.

So what are you doing to prepare and protect your depositors from leaving your institution, especially those customers who want to stay in the traditional banking system but are looking for higher returns on their money?

Some financial institutions are already advertising rate specials – you’ve seen the ads. So many require a checking account and even a monthly direct deposit to earn the highest rates – they are definitely going after your checking deposits.

Others have developed a promotion focusing on a great rate – and plan to launch it when they need to. It’s always good to be prepared when market conditions are projected to change.

The more strategic bankers are not only doing the above, they’ve also built a strategy to retain their best deposit customers. They have identified their top customers and those most vulnerable to a competitor’s special rate offer, and have developed a strategy to keep them happy. The smartest bankers are already doing this ahead of the likely rate wars. They’re prepared.

If you’re not worried then presumably you’re already offering the best rates and your customers are confident they’ll benefit from this promise and will not shop around. It makes sense to remind them of this rate promise though, and worth every penny to do so.

Of course if you offer wealth management services, now might be the time to remind your customers that they have this option to explore, as they seek higher returns.

Don’t wait for the competition to take your hard earned deposit customers – plan ahead, be strategic, and win.

If you would like to discuss how to prepare for the expected rate increase, please contact Lauren at 303-795-3539 or lauren@oconnellconsultinggroup.com.

 

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