Capturing UFOs Unparalleled Funding Opportunities. Neil Stanley

Transcription

1 Capturing UFOs Unparalleled Funding Opportunities Neil Stanley

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10 Factors in Assessing Your Current Situation - Long-term Deposit Volume Trend - Brokered Deposit Volume Trend - Other Borrowed Funds Volume Trend - Cost of CD Interest Expense Compared to Peers - Cost of Funding Earning Assets - Change in CD Interest Expense - Competitive Pricing Position - Loan-to-Core Deposit Level and Trend - Overall Financial Performance - Number of Offices - Market Footprint Funding Volumes/Trend Cost of Funding Marketplace Position Funding Needs

11 A P Y Marketplace Position Pros and Cons to This?

12 A P Y Marketplace Position Pros and Cons to This?

13 Are your depositors going to settle for this? Marketplace Position Pros and Cons to This? A P Y

14 How are Your People Responding to Ads Like This From Competitors?

15 How are Your People Responding to Ads Like This From Competitors Who Are Closer to Home?

16 Bankers Have New Tools 10 Ways to Make CDs Cool Again

17 Switch to a Dynamic Rate Sheet Value Depositors Let your depositors know it s about them by creating a rate sheet that uses the depositor s name. Adaptable Add your current standard terms, rates, and logo. Straight Talk Turn APY into terms your customers know and understand. Simply plug in the amount a customer wants to deposit and show your offerings in dollars rather than basis points alone.

18 Show How You Compare in Dollars Survey Data Survey data is uploaded to the tool on a weekly basis to keep your team up-to-date with the current market. Compare Your Rates Give your frontline easy access to survey data. Win! Data suggests that depositors who are given options in terms of dollars per month are more likely to stay with your institution.

19 Customize Maturity Dates & Offer Relationship Pricing Anticipate Needs Offer and price certificates that mature at any future date. Examples include: Tax day Year-end Birthdays Graduations Anniversaries

20 Retain Maturing CDs with Limited Edition Savings Compliant with Regulation It is a simple savings account. 1.70% Retention Tool An attractive rate with the ultimate in flexibility. Safe to Use Limited to maturing certificates only. No new deposits.

21 As Interest Rates Rise Savers Have New Options Financial Institutions Like Yours are Delivering Value to Depositors in Many New Ways Including: Better Savings Account Products Right-Sized Early Withdrawal Penalties Refinancing

22 Growing Properly-Priced Retail Deposits Today There is no guarantee that retail depositors will remain content as interest rates rise. To combat the potential of attrition, banks and credit unions are using new approaches to attract, negotiate, and expand retail relationships with properly-priced deposits.

23 Better Savings Account Product New Deposits Accounts Deliver the Best of CDs and Savings Open and fund like a CD High yield like a CD Variable rate like a savings account Withdraw any time, like a savings account

24 The Companion Deposit Account Attract New Money Create an offer that appeals to a potentially broader demographic than traditional stand-alone certificates. Similar to Limited Edition Savings It is a simple savings account. 1.80% Variable Rate You control the interest rate.

25 The Companion Deposit Account (Sample Results) 1,420, ,512,924.30

26 Ideal New Relationships (Sample Results)

27 Early Withdrawal Penalties Are Not the Same Between Banks Sample Penalty

28 Have You Increased Your EWP? Why increase Early Withdrawal Penalty? Has it helped? What have been the benefits? What does an effective EWP do? Protect the F.I. Depositors hate penalties! Don t you want more depositors? Why do something they hate??? Do what depositors like that is also good for you!!!

29 Right-Sized Early Withdrawal Penalties Depositors will Increasingly Check the Penalties Offer Right-Sizes Penalties with CDtwo Right-Sized Penalties are determined on day of redemption and are never more than conventional penalties for the bank. It is always better to use CDtwo

30 Right-Sized Early Withdrawal Penalties 100,000 99,854 = $146 Penalty Today Which do you think depositors will choose if you bring this to their attention? $4,880 or $146 early withdrawal penalty? You can Protect Your F.I. while giving Depositors a Better Investment Option

31 The Big Picture Opportunity Every CD conversation should close with a conversation about the bigger picture. Your people are hesitant to ask about other deposits. Many Baby Boomers depositors have refinanced their mortgages many times over the years. Now You Can Help Them Refinance Deposits!!!

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33 Creating an Effective Pricing Strategy A P Y Growth Margin Enhancement Retention

34 A More Effective 7-Stage Approach 1 Companion A P Y 1 Growth Margin Enhancement Retention

35 A More Effective 7-Stage Approach 1 Companion 2 Standard A P Y 1 2 Growth Margin Enhancement Retention

36 A More Effective 7-Stage Approach 3 1 Companion 2 Standard 3 Promotional Specials A P Y 1 2 Growth Margin Enhancement Retention

37 A More Effective 7-Stage Approach A P Y Companion 2 Standard 3 Promotional Specials 4 Customized 5 CDtwo Growth Margin Enhancement Retention

38 A More Effective 7-Stage Approach A P Y Companion 2 Standard 3 Promotional Specials 4 Customized 5 CDtwo 6 Limited Edition 7 CD Refinance Growth Margin Enhancement Retention

39 Sequential Sales Process Opportunities Companion Deposit Account Be Relevant Again Standard CDs Keep Interest Margins Healthy Promotional Specials Focus on Getting Positive Attention Customized CDs Offer the Ultimate in Flexibility of Term CDtwo with Right-Sized Penalties Present Better Options Limited Edition Savings Reward Loyalty with Desired Liquidity 1 Companion 2 Standard 3 Promotional Specials 4 Customized 5 CDtwo 6 Limited Edition 7 CD Refinance Growth Margin Enhancement Retention CD Refinance Be the Heroes who Deliver Windfalls

40 Total Deposit Impact! Financial Institutions using the suite of CoreCD Package and Premium services grew properly-priced retail deposits faster!

41 From what you observed today, Which of these statements apply? We could provide more flexible options for retail depositors. Depositors could better recognize that we are pricing competitively without over-emphasizing interest rates. The sales tools we saw are simple to understand and easy to use. I can see how depositors would appreciate the new things we saw today. I can see how our front line, especially the high-performers would really like this. I can see how Companion Deposit Accounts, Right-sizing early withdrawal penalties, and refinancing CDs of our competitors could help us grow much faster. The ability to make more profit is clearly connected to winning and retaining more properly-priced long-term deposits. We don t want our competitors to get these tools first.

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