Problem

The bank faced a serious challenge of deposit attrition, as more and more customers switched to other financial institutions or alternative channels for their banking needs. The bank’s deposit base was shrinking annually, resulting in lower interest income, reduced cross-selling opportunities, and higher operational costs. If this trend continued, the bank would lose its market share, profitability, and customer loyalty.

Solution

To address the problem of deposit attrition, the bank implemented a data-driven solution that involved four steps. First, the bank used advanced analytics to segment its customers based on their demographics, behaviors, preferences, and needs. Second, the bank developed personalized offers and incentives for each customer segment, such as higher interest rates, cash rewards, or fee waivers. Third, the bank leveraged multiple channels, such as email, SMS, phone, and app notifications, to communicate these offers and incentives to the targeted customers. Fourth, the bank monitored and evaluated the effectiveness of these campaigns and adjusted them accordingly.

Outcome

By using this solution, the bank was able to increase its deposit retention rate, boost its customer satisfaction score, and generate additional revenue.