Past financial trends shape how financial institutions grow in the present and future and the tumultuous ups and downs of the economy, world events, and interest rates over the past 20+ years has created an environment today where it’s crucial for many institutions to reexamine their strategy to ensure long-term stability through growing core deposits.
It’s too early to say exactly what the “new normal” will look like for local credit unions and community banks, but we can project some trends with confidence.
- Rising rates will put a spotlight on core deposits and other low-cost funding sources.
- Higher rates may dampen loan demand in the short to intermediate term.
- There will always be demand for loans for essential purchases like cars and homes.
- Local financial institutions may need to refocus their strategies in light of diminished loan demand.
So where do you start? We’ve helped financial institutions meet their loan-to-deposit ratio goals for over 20 years, so we’ll begin with some tried-and-true methodS.
Three Critical Core Deposit Growth Strategies
Utilize these strategies in day-to-day interactions and for your long-term institutional strategy to bolster core deposit growth for your credit union or community bank.
1 – Outstanding Customer Service
As a credit union or community bank, outstanding customer service helps you stand out from competition. Great customer service is about treating members or customers with respect, foreseeing customer questions and concerns, providing knowledgeable solutions, and clear communication.
Whether it’s a representative from the call center or in-branch visit, members or customers rely on credit union and community bank staff to guide them through financial challenges and connect them efficiently with services that properly meet their needs so make it paramount to train your staff on delivering the best customer experience possible.
