DEPOSIT SOLICITATION

BY:
Faisal kamran
 DEPOSIT SOLICITATION
Core product of Bank
OR
Life Blood of Bank
OR
Management’s tool to harass employees
 DEPOSIT SOLICITATION
TYPES OF DEPOSIT:
1. Current Deposit.

1. Saving Deposit.

1. Term Deposit.
 DEPOSIT SOLICITATION:

Core Deposits
They are stable, low cost and also the basis of banking
relationship. By asking people “where do you bank?”
People typically reply by telling you where they have
their primary transaction account. Regardless of where
their millions are stashed.

Primary deposit account is critical to a bank’s success.

These basic deposit accounts represent reliable sources
of fee income, cross sell opportunities, and referrals to
new customers.
 DEPOSIT SOLICITAION:

Profitable customers “share their wallets”

among two, three, or sometimes more
financial institutions.
Factors that impact Bank’s ability to
acquire and retain core deposits:
• Defining the product line

• Implementing integrated technology

• Supporting deposit operations

• Building a sales culture

Factors that impact Bank’s ability to
acquire and retain core deposits:
• Training employees

• Creating effective referral processes

• Establishing incentive structure

• Segmenting the customer base

Factors that impact Bank’s ability to
acquire and retain core deposits:
• Monitoring the competitive environment

• Launching a comprehensive marketing

plan

These Factors sum up into four primary

functions within the bank
 PRIMARY FUNCTIONS
• Products
Do you have a competitive product line?

Can you define what differentiates your

bank on each of its products?
 PRIMARY FUNCTIONS
• Technology and Operations
Your front line employees need efficient and
effective technology in order to serve their
customers, open new accounts efficiently and
capture pertinent customer information. At the
same time they need to see a customer’s
relationship with the bank at a glance, and your
marketing team needs to be able to reliably
determine household, customer, product, and
business line profitability.
 PRIMARY FUNCTIONS
• Training and Sales Support
When a front-line employee can see the
customer’s relationship, they should also
be equipped to cross sell appropriate
products and services. Employees should
have a thorough understanding of all the
bank’s offerings and be able to identify the
next most appropriate solution.
 PRIMARY FUNCTIONS
• Marketing.
An effective core deposit marketing
strategy requires a segmented customer
base and a clear understanding of
customer profitability. analyzing customer
needs, segmenting and targeting the
potential customer base, acquiring
customers, then servicing and retaining
those customers.
DEPOSIT SOLICITAION:

KNOW BEFORE YOU GO.

 COST OF FUNDS/DEPOSITS:

• Profit Rate offered/ cost of borrowing.

• Statutory and Liquidity Requirements.

• Administrative Expenses.

• Management fee etc.

 PREFERRED DEPOSIT MIX:

This refers to the OPTIMUM proportion of

various types of deposits aiming at the
principal of matching and Profit
Maximization.
THE END