Beyond Phantom Growth: Building Real Relationships
Feb 1, 2024
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CEO of Kasasa discusses challenges community institutions face, distinguishing real growth from transient gains. Strategies for retaining customers and attracting deposits in fintech competition. Analyzing CD balances and offering attractive rates. Integrating innovative financial products and fostering employee competence. Optimizing growth and implementing solutions for financial institutions.
Strategic products and marketing support drive long-term relationship-based growth for community banks.
Institutions need to prioritize effective strategies to retain customer relationships amidst market dynamics and competition.
Deep dives
Challenges Faced by Community Financial Institutions
Community financial institutions face challenges in today's financial landscape. Gabe Kritchek highlights the importance of distinguishing between real growth and transient gains. He emphasizes strategic products and marketing support to drive long-term relationship-based growth. Gabe presents a case study demonstrating how Casasa impacts community banking by generating deposits from checking and savings accounts cost-effectively.
Competition and Liquidity Pressure from FinTechs to Local Banks
Community banks face stiff competition from mega banks and thousands of fintech companies offering high rates. Outbound deposits to fintech providers pose challenges to these institutions, indicating the erosion of primary financial relationships. Gabe discusses how a quarter percent difference in rates can lead significant customers to withdraw funds, highlighting the need for effective strategies to retain customer relationships amidst changing market dynamics.
Innovative Banking Strategies for Sustainable Growth
Institutions can sustainably grow by prioritizing strategic product offerings like high yield checking accounts. Gabe discusses Casasa's approach of offering the best rates on checking accounts to foster primary financial relationships. The strategy involves setting qualification criteria to ensure customer engagement and loyalty, resulting in increased balances and deeper customer relationships. By focusing on core deposits and relationship-building, institutions can drive growth more effectively.
Enhancing Operational Efficiency and Marketing Support for Financial Institutions
Casasa's focus on providing not just technology but bottom-line results to institutions is crucial. They offer operational support, marketing materials, and profitability consultation to ensure successful product deployment. By addressing failure points like marketing resonance, frontline staff training, and compliance, Casasa aims to help institutions optimize growth and overcome operational challenges. The integrated approach of offering tailored solutions and ongoing support enhances the success of financial institutions implementing Casasa's products.
I'm thrilled to welcome back Gabe Krajicek, CEO of financial solutions provider Kasasa on the Banking Transformed podcast. Gabe joins us to discuss the challenges community institutions must address today and how strategic products and marketing support can drive long-term relationship-based growth.
Gabe provides compelling case studies demonstrating Kasasa's impact on community banking. He stresses the importance of distinguishing between real growth and transient gains, offering strategic advice for institutions navigating today's financial landscape.
Gabe's vision for a robust, community-focused banking future leaves us with a deeper understanding of the pivotal role Kasasa plays in the industry.
This episode of Banking Transformed Solutions is sponsored by Kasasa
Kasasa is a financial technology provider committed to driving real growth for community banks and credit unions to help them recapture market share. Since 2003, their branded retail products, and expert consulting services have helped their clients attract, engage, and retain consumers nationwide. Today over 600 community banks and credit unions rely on Kasasa to manage over $20B of core deposits.