According to Alkami’s 2024 Telemetry Data Report, average consumer deposit balances in checking, savings, money market, and certificates of deposit (CDs) are higher today than they were in 2019. This may seem like good news, but since 2022, balances for checking and savings accounts have been trending downward. Deposits are up for grabs, and relevant, personalized engagements are the key to achieve deposit growth. But how can financial institutions grow deposits while delivering the personalization account holders expect? By using data insights built from users’ deposit activity paired with full funnel marketing, banks and credit unions can provide personalized banking experiences to maintain and grow deposits.
Data insights empower financial institutions to send personalized messages to account holders, making them feel understood and valued. Full funnel marketing connects these data insights with marketing automation. This enables banks and credit unions to automatically optimize campaign audiences with fresh data insights daily, ensuring every marketing message is pertinent to account holders’ financial needs.
So what kind of data insights exist to support deposit growth for banks and credit unions? Let’s cover a few data tags that do exactly that.
A key signal financial institutions should consider is the presence of trial deposits. These are small initial deposits into a new account at a competing institution. Using data insights to identify merchants sending these trial deposits gives financial institutions an early warning system. By acting quickly when trial deposits appear, banks and credit unions can reach out to account holders, tailoring communications to the account type in question.
For example, if an account holder makes a trial deposit into an online brokerage, they may not realize that your financial institution offers investment services. This is a critical moment when proactive outreach can prevent deposit outflow.
Significant changes in deposit amounts, whether large withdrawals or deposits, offer another opportunity to engage with account holders. These changes often signal important events in a person’s life—a windfall, a major purchase, or even financial distress. By identifying such changes through data insights, financial institutions can reach out to offer tailored solutions.
If an account holder deposits a large sum of money, it may be a positive financial event. This could be an ideal time to suggest a meeting with a representative to explore options for growing that wealth further. On the other hand, a large withdrawal could indicate financial stress or movement to a competitor, and timely communication could help retain those deposits.
Changes in aggregate deposit balances over time can also provide valuable data insights. When an account holder’s balance changes by 50% or more over 30 days, it’s an important indicator of where their relationship with the financial institution might be headed.
Financial institutions can use digital channels to target account holders with increased balances, offering attractive CDs or savings rates to lock those funds into long-term deposits. At the same time, account holders with significant balance declines could be experiencing financial hardship, or they could be seeking better terms at another institution. Understanding the context of these shifts, whether through digital or direct outreach, allows financial institutions to offer appropriate solutions that meet the account holder’s needs.
Direct deposits are a strong indicator of an account holder’s primary financial institution. Monitoring the dollar value and frequency of direct deposits can give financial institutions critical insight into account holder relationships. By prioritizing outreach to account holders with high direct deposits, institutions can ensure these steady deposit streams remain in-house. For those account holders with low or zero-dollar direct deposits, targeted communications can encourage them to switch their payroll to your institution. A small nudge, such as an email or phone call, might remind them of the advantages of keeping their direct deposit in a trusted place.
Financial institutions must ensure they are present at all key moments in their account holders’ financial journeys. Whether it’s recognizing a trial deposit, responding to a large withdrawal, or promoting direct deposit services, data insights can guide these interactions. By making use of full funnel marketing and unlocking data insights, financial institutions can retain and grow deposits, ensuring their presence in their account holders’ financial lives for years to come.
