Pub. 4 2015 Issue 2

11 S U MM E R | 2015 F E A T U R E now and over time? Might they be interested in other prod- ucts down the road?” “One of the keys is direct measurement, something we leverage all the time at IXI Services,” he explains. “Use segmentation tools based on direct-measured assets to find out more about your client and what’s likely to be in their portfolio at your bank and other institutions. Then use the data to develop strategies that both meets the client’s needs and maximizes opportunities for your bank.” Understand your customer in advance. According to Green, the best preparation work bank marketers can do in advance of an interest rate change is to understand your cus- tomer base. “What is in their portfolio?” he asks. “How will they be affected by a change in rates? If a customer has a high money market balance with your bank, but little in the way of other deposits and investments outside your institution, then you can probably move slowly to increase their rate since they are more likely to be loyal to you and may not be familiar with other competitors.” “On the other hand, if a customer holds a small balance with your bank, but has large investments and other deposits elsewhere, you may want to consider being more aggressive in adjusting the rate if you want to capture more of their sav- ings and grow your share of wallet,” comments Green. Keep an eye on the market. Green advocates keeping tabs on how your bank compares to others in your market- place: “Are you gaining share or losing share? Are your deposit pricing strategies impacting whether you are gain- ing or losing customers?” These types of questions help institutions better understand market dynamics and how a bank’s interest rate and marketing strategies might need to change . The landscape is very competitive. “Some banks are hun- gry, and always craving more deposits,” says Green. To bring new business on board in a volatile rate environment, Green says you should know what road to take to achieve good re- sults. “Institutions can use analytics to study the marketplace and figure out where they should place ads and/or branches as well as what they should offer in order to move the needle in getting new customers and keep their existing customers happy.” Knowing the market helps institutions make more competitive offers, tailor messages, and deliver them via the right channel. No doubt, there will be a whirlwind of activity when the Federal Reserve steps away from its campaign to keep a lid on interest rates. To help capitalize on that opportunity, follow the script Green lays out above to help beef up your bank’s deposit and loan businesses. For more information about Retail Banking solutions and insight from Equifax, please contact your Virginia Equifax representative, Catherine Holden at 757-455-9387 or cholden@retailalliance.com. Scott N. Drake, CPA sdrake@sek.com Scot E. Orndorff, CPA sorndorff@sek.com Luke C. Martin, CPA lcmartin@sek.com Gary D. Snyder, CPA gsnyder@sek.com DoriAnn F. Hoffman, CPA dhoffman@sek.com 717.263.3910 888.272.7351 SEK.com Get a new perspective on your success. Our experience adds value beyond the numbers. Partner with an advisor you can trust.