ATLANTA — Harland Financial Solutions is now offering a data-analysis service targeted at helping credit unions and other financial institutions acquire, organically grow and retain deposit dollars.
Called Deposit Benchmarking, the solution analyzes publicly reported account level data as well as overall household relationship information, helping institutions form better strategies for marketing, pricing and positioning their deposit products, the company says.
Initial findings using the system show that financial institutions focus on new client acquisition almost exclusively, which can be a precarious deposit gathering strategy, the company says.
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"Acquisition is often the preferred approach for deposit growth because it is so familiar," says Tom Gerry, vice president and practice manager for the Business Intelligence advisory group at Harland Financial Solutions. "But for every 10,000 households acquired, a third will leave in the first year, taking with them an average of nearly $1.5 million in interest income potential and absorbing $750 thousand in marketing and other acquisition expenses."
The Deposit Benchmarking uses data analysis to help institutions better understand their performance and make recommendations for improvement.
"Deposit Benchmarking reveals the dynamics–the trade-offs–of a deposit strategy in ways that publicly available data cannot," Gerry says. "It's a solid baseline for measuring the impact of a deposit-gathering strategy."
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