5 Steps to More Core Deposits


Regulators and bankers have one common concern right now—get and keep deposits as interest rates go up. Sounds easy, but it hasn’t been all that easy just to get deposits when rates have been low, and so getting better at this immediately is important.

I’m going to cover five must-do-now strategies that you need to have happen pronto to make sure that you get and keep those deposits to weather this upcoming storm.

      1. Make sure that your commercial bankers understand how to bring in million-dollar checking accounts. Extreme differentiation is necessary. An extreme sales process that works is necessary, because no one gets up in the morning thinking that they want to change banking relationships. It is hard on a business, so your ability to make a massive difference in their world, such that they can’t imagine sticking with the incumbent bank but instead they must come with you is absolutely imperative for this to work.
      2. Make massive shifts now, to change the deposit mix to grow your core deposits. Easier said than done, but I’ve seen banks go from 40 to 70 in just a matter of 6 to 9 to 12 months. If they […]

Can Your Team Survive Strategic Planning?

If you haven’t done your strategic plan yet, be thinking about—not only the things I covered recently about strategic planning—but also the fact that one of the most important things you can do is bond your team.

Here’s the thing: if you’ve got great strategies, but people are not aligned behind them, the likelihood of getting them done is slim to none. Now, what happens in most strategic planning sessions is that people actually go sideways and they build resentments.

I worked with a bank team years ago, and the CFO and the head of retail did not make eye contact for about six months after the strategic planning session!

In fact, what should happen is there should be a bonding that happens there and a clear understanding that everyone on that team is 100% accountable for all the results.

And so there will be no, “Gosh, those people in marketing didn’t get it done; those people over at commercial didn’t get it done; hey, those wealth management people didn’t get their piece done.”

If you’re on the executive team, you are 100% accountable for every outcome that you list in your strategic plan.

So creating a bond during […]

How to Turn Your Personal Bankers Into Cross-Selling Stars

What if you had personal bankers who could each bring in million-dollar-business checking accounts—2 to 4 of those each month—with great regularity?

And what if you could have other personal banker specialists who focus only on your top 100 most-profitable customers, and you could get an average of 13 cross-sales on those accounts?

And what if you had personal bankers who could proactively call out to Top 100 and Top 1000 customers with an extreme amount of sophistication so the customers bring all their business and all their friends?

Listen…the 1980s are over and mobile banking is here. And the game has changed to one where your personal bankers need to be out there—not in here—but not with traditional sales processes, but instead, very sophisticated ways to talk to people.

Those three things I started with? Sounds impossible? They’re not—when you follow a simple system into what could otherwise be a complex process.

Let’s talk about what’s necessary here.

Number one is the education—they must be exposed—every week—to a basic. Repetition is the law of learning: the more they repeat the learning, the better it is. One chapter in Thank God […]

A Seldom Used Secret Weapon in Community Bank Sales

Selling has changed…and if it feels like selling, you’re doing it wrong. The whole premise of sales in community banking is on a fundamentally weak base right now. What we don’t understand is that what we need to do is delve deeply into customers’ needs—but only after we get permission to not be talking about the rates.

Our first question needs to be the Break Preoccupation with Rate Question. Put the rate before the word “value” followed by a reason to believe. You need to have extreme value beyond product line. Without that, you will always be dragged back down to having to match price.

Number two, you need to have good Needs Questions. Your questions need to be deeper-level questions. “Tell me about how you got started in this business? What’s important to you about your relationship with the bank? Tell me about what it is that you value in making sure that your business is really progressing? What’s important to you about money?”

When you ask questions that get to the fundamental needs that are going on within people and address their feelings—what they’re really basing their decisions on—then great things begin […]

3 Hidden Dangers of Cross-Sales

For decades now, I’ve seen the statistics run along the same alarming, flat line…cross-sales of new accounts in banking AVERAGE…AVERAGE, just 2.2 per account! Let me spare you the complex math…

That means MANY banks are below 2.2 cross-sales per account and some are above—but not far.

Cross-sales may seem like a small issue, but the industry-wide cross-sale contagion poses a near and very present danger to you on three fronts.

Danger #1: The Obvious: You’re likely leaving big heaping piles of money laying on the table! You spend money by the bucket-load to acquire new customers, then sell them a free checking account and a loan at a rate you don’t like. Your personal bankers swell with pride as they close the deal, shake hands, and let piles of profit walk right out the front door!

Danger #2: The Long Arm of The Law: Regulators are starting to give the depth of your customer relationships a TSA style “personal inspection”…”step behind the paper curtain, please, while we check your knickers!” They’re looking for sticky relationships and the #1 measure…how many different accounts you have with each customer. If you’ve been flunking cross-sales, the examination […]