By Devon Kinkead

The banking industry has always faced the challenge of attracting and retaining deposits. Traditionally, financial institutions relied on interest rate adjustments, personalized services, and marketing campaigns to hold on to accountholder deposits; but most actually did very little to retain large deposits. However, as financial technology advances, solutions like Micronotes’ exceptional deposits and retention technologies are changing this space. Here’s a comparison of these proven modern tools to historical methods of deposit retention.

The Historical Approach to Retaining Deposits

Historically, depository institutions used several key strategies to attract and retain deposits:

1. Interest Rate Adjustments: Offering higher interest rates on savings accounts and certificates of deposit was a common method. However, this approach often created a “rate war,” where profitability could be compromised​​.
2. Personalized Service: Smaller community institutions excelled in creating lasting customer relationships through in-person interactions and relationship banking​. While effective, this approach was limited by scale and geography.
3. Marketing Campaigns: Depository institutions relied heavily on promotional campaigns and advertising to attract and retain depositors. These efforts were often broad and lacked personalization.
4. Deposit Guarantees and Stability Measures: After the Great Recession, deposit insurance limits were raised, and programs like the Temporary Liquidity Guarantee Program (TLGP) instilled greater confidence in deposit safety​​.

While these methods had varying degrees of success, they relied heavily on general trends and lacked the precision to target individual accountholder needs.

Micronotes’ Exceptional Deposits and Retention Technology: A New Paradigm

Micronotes takes a modern approach by leveraging digital conversations, statistics, and machine learning to understand customer behavior and tailor banking solutions. Here’s how it sets itself apart:

1. Personalized Customer Engagement: Using microinterview technology, Micronotes engages customers with highly personalized interactions. Unlike traditional marketing, these digital conversations are based on near real-time deposit data, ensuring relevance and increasing the likelihood of engagement​.
2. Predictive Analytics for Retention: By analyzing customer behavior and attrition patterns, Micronotes can predict which accountholders are likely to leave and take their deposits with them. This insight allows financial institutions to proactively offer solutions, such as offers to talk to a banker to discuss their banking experience along with targeted product recommendations or loyalty rewards​​.
3. Cost-Effectiveness: Unlike interest rate adjustments, which can strain profitability, Micronotes helps banks retain deposits by addressing customer needs without significantly altering their pricing models​​.
4. Scalability: Traditional relationship banking is constrained by human resources and geography, but Micronotes operates on digital platforms, making its tools scalable for institutions of all sizes​.

Advantages of Micronotes Over Historical Methods

1. Precision: Micronotes’ ability to deliver tailored solutions means customers feel understood and valued, reducing churn rates. Every large deposit is a life event and Micronotes connects accountholders to their financial institution when they need help through a life event.
2. Efficiency: By automating the targeting and customer engagement process, financial institutions save time and resources and get it right.
3. Proactivity: Instead of reacting to customer attrition, Micronotes enables proactive strategies to retain customers and their deposits​.

Lessons from the Past, Powered by the Future

The financial crisis of 2008 highlighted the importance of customer confidence and liquidity management​​. While traditional methods relied on broad-based solutions, tools like Micronotes address the individual needs of customers in real time. By blending historical insights with modern technology, banks and credit unions can build stronger, more resilient deposit bases.

In conclusion, as the banking landscape evolves, Micronotes’ exceptional deposits and retention technologies exemplify the shift towards data-driven, customer-centric approaches. By understanding individual customer behaviors and needs, banks and credit unions can ensure they remain competitive in a digital age while drawing on the foundational practices of trust and service. Request a demo here.

By Devon Kinkead

The financial services sector faces constant pressure to adapt, innovate, and keep customers engaged. But how do you not only attract new customers but also ensure they stay loyal in an increasingly competitive landscape?

During our recent Gain and Retain webinar, we unpacked actionable insights to tackle this challenge, weaving technology, personalization, and strategy into a framework for success. Let’s break it down.

Deposits Are More Elusive Than Ever

Financial institutions are grappling with two critical issues: attracting new customers and keeping the ones they already have. In today’s environment, consumer expectations for personalized services are high, yet loyalty remains fragile. Bank data reveals that more than 50% of large deposits are withdrawn within 90 days without proactive engagement​.

How can banks and credit unions close the gap between their services and what customers need during pivotal life moments?

Partnering for Smarter Solutions

Micronotes has stepped up with innovative tools designed to address these challenges head-on. By leveraging vast data sets, predictive analytics, and hyper-personalized outreach, Micronotes helps financial institutions anticipate customer needs and deliver tailored solutions right when they matter most.

For example, Micronotes’ Accountholder Retention solution uses machine learning to identify at-risk customers and initiate automated, meaningful conversations within mobile banking apps​. Similarly, Prescreen Acquire deploys hyper-personalized prescreen campaigns to connect with creditworthy prospects and accountholders using geotargeting and 230MM consumer credit records, updated weekly​. Exceptional Deposits identifies unusually large deposits and immediately reaches out to depositors through the digital banking channels to offer help during major life events.

Engage at Scale with Personalization

1. Understand Your Customers’ Moments That Matter
   Life events like buying a home, consolidating debt, or receiving a windfall are critical opportunities to build trust. Micronotes identifies these moments through its Exceptional Deposits program, which flags large deposits and automatically connects accountholders with relevant services​.
2. Turn Data into Actionable Insights
   By analyzing millions of data points, Micronotes’ tools predict accountholder behaviors and needs, enabling financial institutions to act proactively, not reactively. Whether it’s cross-selling products, retaining an accountholder ready to leave, or acquiring new creditworthy accountholders, the results are transformative.
3. Scale Conversations Without Losing the Personal Touch
   Traditional marketing may start one conversation at a time. Micronotes’ Cross-Sell achieves 26x the click-through rate of banner ads by engaging accountholders in interactive dialogues tailored to their specific situations​.

Real Results, Real Growth

Micronotes customers are already reaping the rewards of Micronotes’ gain and retain approach, from acquiring new accountholders at a profit, to expanding wallet share, to retaining depositors and their deposits. It’s a powerful combination.

Step Into the Future of Banking

2025 is the year to stop losing opportunities to competitors with outdated systems and thinking. Let Micronotes help you gain new customers and retain the ones who already trust you.

By Devon Kinkead

In a recent interview with Alicia Wade, former President & COO of Valliance Bank and current EVP/COO of Sovereign Bank, we explored her experience with Micronotes and how it has significantly improved their approach to customer engagement. Below is a summary of that conversation, with direct quotes from Alicia highlighting the key benefits she and her team have experienced.

The Initial Challenge

Alicia didn’t frame her situation as a “problem” but rather as a communication barrier. Valliance Bank was struggling to engage with customers who no longer visited branches regularly. With the majority of their customers now opting for digital banking services, the bank needed a new way to connect.

Alicia explained, “Micronotes allows us to talk to customers that aren’t coming into branches, which now is a majority of our customers.” The challenge was clear: How do you start meaningful conversations with customers who you rarely see in person?

The Frustration of Finding a Solution

Before discovering Micronotes, Valliance Bank grappled with how to reach customers who were not physically present at the branch. Alicia and her team knew that their customers were unlikely to respond to phone calls, and contacting every customer daily was impossible. Alicia described her frustration: “We’re trying to think, how am I gonna reach these individuals? They’re not coming in, they’re not gonna wanna answer our phone calls.”

This highlighted the need for a solution that could engage customers in the digital spaces they now occupied.

Why Micronotes Stood Out

When asked what set Micronotes apart from other solutions, Alicia emphasized two main factors: seamless integration and ease of use. “First and foremost, it was that the relationship with our core provider was already established, and we didn’t have to introduce them,” she noted.

The ease of use was another critical factor. As Alicia shared, “We can train new individuals on how to use it, and they’re using it that day. It’s not cumbersome, it’s not difficult, and it’s not overbearing to the customers on their end either.” The combination of integration, simplicity, and customer-friendliness made Micronotes an ideal solution for Valliance Bank’s needs.

The Moment of Realization

Alicia clearly remembered the moment she knew Micronotes was the right solution: “When we are getting those reports—your tracking mechanisms and your data analytics—and we’re getting those reports of number of clicks, number of conversions… month one.” The data showed that customers were not only engaging with the tool but doing so at a level that drove meaningful results. This immediate impact validated Valliance Bank’s decision to adopt Micronotes.

Life After Micronotes

Since implementing Micronotes, Valliance Bank’s communication challenges have been largely resolved. They are now in regular contact with their customers, learning more about their needs and sparking valuable conversations. Alicia mentioned that her focus has shifted to exploring what else Micronotes can do for them: “What else can we learn about our customers that we don’t know about yet?”

The success with Micronotes has opened new possibilities for Valliance Bank, prompting them to consider how they can leverage the platform to uncover additional insights and address other challenges.

Conclusion

Alicia Wade’s experience with Micronotes at Valliance Bank illustrates the transformative power of effective digital engagement tools. By breaking down communication barriers and enabling consistent, meaningful interactions, Micronotes has helped Valliance Bank not only solve its initial challenge but also position itself for future growth and deeper customer relationships.

If your organization is facing similar challenges, consider how Micronotes could help you meet your customers where they are and engage them in ways that matter most.

The entire interview can be seen here

By Devon Kinkead

In a recent interview with Ally Houghton and Karen Bendetti from The Savings Bank, we delved into the challenges they faced in reaching their online customers and how Micronotes helped solve the problem. The conversation shed light on the difficulties financial institutions face when trying to connect with digitally-only customers and the transformative impact that targeted engagement can have.

Identifying the Problem

The primary challenge for the bank was reaching customers who had opened their accounts online but weren’t necessarily utilizing the bank’s full suite of online services. “The main problem we were having was reaching our online customers and our customers that would open their accounts through online, not necessarily coming to the branches and using all of our online service products.” remarked Ally. This difficulty was compounded by the struggle to connect with the right demographics, leading to frustration within the organization.

The Turning Point with Micronotes

Micronotes made a significant difference for the team by allowing them to drill down and target specific groups and demographics. Ally highlighted that, “the big difference about Micronotes is we could really drill down and target certain groups and demographics and target audiences that we wanted to for each individual product or question that we had for them.” Additionally, the Net Promoter Score (NPS) component provided valuable insights into customer loyalty, remarked Karen, giving the bank a clearer picture of the level of satisfaction of the customer base.

Seeing the Results

The moment of realization that Micronotes was working came when the bank first saw the analytics. They could see customer comments and identify which products and services resonated most with different customer segments. Ally explained, “When we first saw the analytics and… the customers’ comments, we could see what questions and products they were actually really identifying with… we could even drill down further to target them on those products.” This level of insight allowed the bank to better understand their customers’ needs and tailor their offerings accordingly.

The New Normal

With Micronotes in place, the bank has found it much easier to identify and understand their customers. “It’s a lot easier to identify customers and to understand our customers as far as what they’re looking for, what problems they may have, whether their problems are being solved, how they feel about the bank as their primary bank, their loyalty.” This newfound clarity has not only improved customer engagement but has also opened up opportunities to explore new products that could address unmet customer needs.

Conclusion

The experience of The Savings Bank underscores the importance of targeted engagement coupled with the power of interviewing customers to understand their needs, motivations, and where the relationship stands. By leveraging Micronotes, The Savings Bank team have been able to overcome the challenge of reaching online and mobile customers and have transformed their marketing and customer service strategies. The results speak for themselves—greater customer satisfaction, improved loyalty, and a deeper understanding of what their customers truly need.

If your financial institution is facing similar challenges, consider how Micronotes can help you connect more effectively with your customers and unlock new growth opportunities.

The entire interview can be accessed here.

By Devon Kinkead

In a recent conversation with Collin Daily, Vice President and Operations Systems Manager at First Nebraska Bank, it became evident just how powerful Micronotes is in solving real-world marketing challenges for community financial institutions. Collin shared his experiences with our platform, offering valuable insights into how Micronotes has significantly impacted their operations.

The Challenge: Reaching the Right Customers

When asked about the problem they were facing before discovering Micronotes, Collin didn’t hold back:

“We were struggling the most with reaching out to our current customers and getting them the knowledge they need about our products and services.”

Traditional direct-to-consumer marketing, Collin explained, was not only time-consuming but also not cost-effective. The frustration was palpable as he described how challenging it was to get the message across to their existing customer base.

The Solution: Micronotes’ Seamless Implementation

Upon integrating Micronotes, the transformation was immediate. Collin recounted their onboarding experience:

“We signed on with Micronotes, and it was a very easy implementation…very great process.”

Starting with simple campaigns, such as customer ratings, they quickly realized the potential of the platform. Even as they moved to more complex campaigns, the process remained smooth, allowing them to gather acitonable customer feedback effortlessly.

The Results: Effective Campaigns and Valuable Data

The success of these campaigns wasn’t just in the ease of use but also in the results they delivered. Collin noted:

“We were able to get some really great data and work with that data to get our customers the info that they need.”

The ability to obtain actionable insights meant that First Nebraska Bank could provide their customers with precisely what they were looking for, enhancing both engagement and satisfaction. The Micronotes system employs microinterview technology that dynamically and exponentially segments respondents so the exact needs of each customer is known and addressed.

A Collaborative Experience

Collin emphasized that the experience wasn’t just about the technology but also the people behind it:

“Our experience with the Micronotes team has been fantastic as well. Super team-oriented, super friendly, quick responses. I mean, it’s been fantastic.”

This collaborative and responsive approach ensured that First Nebraska Bank felt supported throughout the entire process, from implementation to ongoing campaigns.

Conclusion

Micronotes has proven to be more than just a marketing automation tool for First Nebraska Bank; it’s become a key component of their customer engagement strategy. By providing a seamless, effective solution and a supportive team, Micronotes has helped the bank overcome significant challenges and achieve their key customer engagement goals.

See the full interview with Collin Daily here.

By Xav Harrigin-Ramoutar

Banking in the Age of Gen Z: Adapting to Digital Natives

Welcome to 2023, a year where the banking and finance world is not just evolving; it’s revolutionizing. Picture this: a landscape where traditional banking norms are being upended, driven by a mix of regulatory shake-ups, the unstoppable rise of fintech, and a new breed of customers who want more than just a place to park their money.

Enter the World Economic Forum’s perspective, emphasizing a crucial pivot for banks: it’s time to rebuild trust and focus on stable, reliable funding sources, especially after the early 2023 banking rollercoaster. It’s not just about surviving the upheaval; it’s about thriving in it.

Now, let’s talk about the real game-changers: Generation Z.

These digital natives, stepping fresh into the workforce, are rewriting the rulebook on banking needs and preferences. They’re not just tech-savvy; they’re tech-forward, seeking authenticity and a sense of community in their financial dealings.

Let’s dive into the world of new customer acquisition strategies for community financial institutions, weighing the pros and cons in the dynamic context of Gen Z’s entry into the financial arena.

Digital Outreach and Engagement

Crafting a Digital World That Speaks Gen Z

In the quest to captivate the hearts and screens of Gen Z, a robust digital presence isn’t just an option; it’s the lifeline. This generation lives online, and if you’re not there, well, do you even exist? 

The Digital Marketing Dance

Let’s talk strategy. Digital marketing for Gen Z is like a well-choreographed dance. It’s dynamic, it’s engaging, and it’s always on beat with the latest trends. This means leveraging social media platforms not just to broadcast, but to connect and converse. Think Instagram stories that simplify financial concepts, TikTok videos that showcase community involvement, or Twitter threads that offer quick financial tips. It’s digital marketing with a personal touch, a blend of professionalism and relatability that strikes a chord with this young audience.

Social Media: The New Town Square

Social media for Gen Z is more than a platform; it’s where they hang out, catch up, and stay informed. Engaging with them here means more than just posting; it’s about creating a community. It’s about interactive polls, Q&A sessions, and maybe even a meme or two. It’s about showing the human side of banking, the faces behind the counters, and the stories behind the services.

User-Friendly Online Banking: Non-Negotiable

And let’s not forget the cornerstone of it all: user-friendly online banking experiences. For Gen Z, ease of use is non-negotiable. It’s about ensuring that whether they’re transferring funds, checking balances, or applying for a loan, the experience is smooth, quick, and hassle-free.

Personalization and Community Involvement

Tailoring Banking to Fit Gen Z’s Unique Style

In the world of Gen Z, one size does not fit all. This generation craves personalization in every aspect of their lives, and banking is no exception. They’re not just looking for a place to park their money; they’re seeking a banking experience that feels like it’s made just for them. For community financial institutions, this means diving deep into the art of personalization.

Community Involvement: Banking with a Heart

But Gen Z’s desires don’t stop at personalized banking; they extend to how their bank interacts with the community. This generation is socially conscious and values institutions that not only talk about community support but actively engage in it. For community banks, this is a golden opportunity to showcase their local roots and commitment to community development. It’s about being more than a financial institution; it’s about being a force for positive change in the community.

Pros and Cons of New Customer Acquisition Strategies

Navigating the Gen Z Terrain: Opportunities and Challenges

Targeting Gen Z presents a unique set of opportunities and challenges for community financial institutions. This generation’s entrance into the workforce opens up a new customer base, ripe with potential. However, engaging with this digitally native and socially conscious demographic requires a nuanced approach, blending modern tactics with traditional banking values.

The Bright Side: Tapping into a Tech-Savvy Market

Pros:

1. Digital Prowess: Gen Z’s comfort with technology offers banks the chance to innovate and enhance their digital offerings. This could lead to more efficient operations and a broader reach beyond traditional geographic limitations.
2. Brand Loyalty Potential: Once engaged, Gen Z can become loyal customers, especially if their values align with the bank’s practices. Their propensity for social sharing can also turn them into brand ambassadors, amplifying the bank’s presence.
3. Future-Proofing: Adapting to Gen Z’s preferences helps future-proof the bank, ensuring it stays relevant as banking trends evolve.

The Flip Side: Balancing Act and Resource Allocation

Cons:

1. Resource Intensive: Developing and maintaining advanced digital platforms can be resource-intensive, both in terms of dollars and manpower.
2. Risk of Alienating Existing Customers: In the pursuit of attracting Gen Z, there’s a risk of alienating existing customers who are accustomed to traditional banking methods. Finding a balance is crucial.
3. Keeping Up with Rapid Changes: Gen Z’s preferences and technological trends evolve rapidly, requiring banks to be agile and continuously adapt, which can be a daunting task.

Charting the Future of Banking with Gen Z 

As we conclude our exploration of new customer acquisition strategies for community financial institutions targeting Gen Z, it’s evident that the future of banking is being reshaped by this dynamic, digitally-savvy generation. Embracing change and innovation is key. The rise of Gen Z signifies a shift towards personalized, digital-first banking experiences. Community financial institutions must leverage technology to offer services that meet Gen Z’s unique needs and values, including a robust digital presence and a commitment to social and community causes. However, it’s crucial to balance this digital transformation with the traditional values of community banking, like personalized service and local involvement. By creating a hybrid banking experience that resonates with Gen Z, and preparing for a more interactive, educational future aligned with broader social values, community financial institutions can thrive in this new era, staying relevant and competitive.

Xav Harrigin-Ramoutar

In 2023, the financial realm experienced tremors that sent shockwaves across global markets and local communities alike. The United States confronted significant financial disruptions, most notably the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank. These events were clear indicators of a brewing crisis that necessitated swift and strategic interventions. Amidst this turmoil, community banks, often the lifeblood of local economies, found themselves in the eye of the storm. Their challenge? To mitigate immediate financial repercussions while preserving the trust of their clientele. This crisis underscored a pivotal realization: in the modern banking era, technology has transitioned from being a mere facilitator to an indispensable ally, especially during financial upheavals. This piece aims to explore the multifaceted role of technology in cushioning the blows of banking crises, with a special emphasis on community banks.

The 2023 Banking Crisis: A Brief Overview 

The financial narrative of 2023 is marred by a banking crisis that left both global giants and local communities grappling with its repercussions. The crisis unveiled itself with the unexpected acquisition of First Republic Bank by JPMorgan Chase, marking a significant event in a series of banking setbacks. Earlier in the year, Silicon Valley Bank, a renowned financier to tech startups and venture capital entities, met its downfall. This was closely shadowed by the collapse of Signature Bank, a stalwart in the New York financial scene. The gravity of the situation was further accentuated when Wall Street’s titans stepped in, infusing a staggering $30 billion into First Republic, and the monumental merger of UBS and its Swiss counterpart, Credit Suisse, took center stage.

Community Banks Amidst the Crisis: Community banks, the pillars of many local economies, found themselves navigating treacherous waters during this financial maelstrom. Unlike their colossal counterparts, these banks operate on leaner margins, making them particularly vulnerable to economic shocks. The crisis presented a liquidity conundrum, with many on the brink of potential bank runs as public confidence dwindled. The interconnectedness of the financial ecosystem meant that the downfall of one entity could trigger a cascade of events, placing community banks in a delicate position of managing multifaceted challenges.

The Imperative of Customer Trust 

In the intricate world of banking, trust isn’t just a cornerstone; it’s the foundation. For community banks, where relationships often span decades, this trust is sacrosanct. Financial turbulence puts this trust to the test. Customers, more than ever, seek reassurances that their investments, savings, and personal data remain secure. A breach in this trust can trigger a domino effect, leading to bank runs and further deepening the crisis. In our digital age, where news travels at lightning speed, managing perceptions and restoring trust becomes an uphill battle.

Strategies for Upholding Customer Trust During Turbulence

Transparent Communication: In times of uncertainty, transparent, timely, and consistent communication emerges as a beacon of trust. When a bank’s stability is under scrutiny, customers naturally seek clarity. Open channels of communication not only disseminate vital information but also showcase a bank’s commitment to its clientele.

Enhanced Customer Support: In times of crisis, enhanced customer support becomes the linchpin in maintaining trust. Leveraging technology, such as AI-driven chatbots and online support platforms, ensures timely and effective resolution of customer concerns. Moreover, digital tools enable banks to offer uninterrupted services, ensuring customers feel valued and supported.

Financial Support Initiatives: Offering tangible financial support, like goodwill credits or loan deferments, can alleviate the immediate financial strain on customers. These acts not only assist customers during challenging times but also underscore a bank’s genuine commitment to its community.

Security Assurance: In today’s digital era, ensuring robust cybersecurity measures is paramount. Customers need to be confident that their assets and data are shielded from potential threats. This involves not just employing state-of-the-art technologies but also effectively communicating these measures, instilling confidence and ensuring that assets and data remain uncompromised.

Technology’s Role in Fortifying Financial Stability

Digital Banking Services: The digital revolution has ushered in an era where banking services are at one’s fingertips. Online platforms, mobile apps, and digital services ensure that customers can access a myriad of services, from fund transfers to loan applications, without the confines of brick-and-mortar branches.

Data Analytics: Harnessing data analytics to delve deep into data, banks can glean insights into customer behavior, market trends, and potential risks. Predictive analytics can offer foresight into market shifts, while prescriptive analytics can guide banks in making informed decisions, ensuring stability even during financial upheavals.

Blockchain and Cybersecurity: Blockchain technology offers a secure and transparent method for transactions, enhancing the integrity of financial exchanges. Coupled with robust cybersecurity measures, it ensures that customer data remains impervious to breaches.

Automation: Technologies, like Robotic Process Automation (RPA) and AI, streamline operations, reduce human error, and optimize resource allocation. In times of financial strain, automation ensures that banks maintain operational efficiency, ensuring uninterrupted service delivery.

Navigating the Future with Technology and Trust

The 2023 banking crisis underscored the intricate dance between technology and trust in the modern banking landscape. As banks, especially community banks, navigate the challenges ahead, the harmonious integration of technology and a steadfast commitment to trust will be their guiding lights. In this evolving narrative, banks stand poised to not just weather the storm but to emerge stronger, championing a future where technology and trust walk hand in hand.

By Xav Harrigin

The dawn of the digital age, marked by the rapid proliferation of electronic devices and the omnipresent influence of the internet, has reshaped industries across the board. The banking sector, long regarded as a pillar of stability and tradition, finds itself amidst a transformative whirlwind. Micronotes emerges as a beacon in this change, introducing its cutting-edge recommender engine to navigate these uncharted waters.

Deciphering the Data Deluge and the Advent of Personalized Banking

In the intricate web of modern banking, institutions grapple daily with a deluge of data. Every deposit made, every transaction processed, and each loan application submitted paints a vivid picture of a customer’s financial journey. Micronotes’ recommender engine, harnessing the power of AI-driven technology, delves deep into these data narratives. It ensures that banks transition from mere reactive strategies to proactive, forward-thinking approaches. Parallel to this, the banking sector has witnessed a metamorphosis from generic service offerings to a more nuanced, financially personalized model. Taking cues from platforms like Netflix, which has mastered the art of personalization, Micronotes’ engine dives into a customer’s financial history, crafting tailored product suggestions. This evolution from broad-based to individual-centric banking is a cornerstone in enhancing customer loyalty and overall satisfaction.

Predictive Analysis and Engagement in the Digital Age

The capabilities of Micronotes’ recommender engine extend beyond simple product recommendations. It ventures into the realm of predictive analysis, identifying patterns and potential trends. Such insights allow it to anticipate financial challenges or even predict customer attrition, enabling banks to intervene with timely solutions, thereby strengthening their customer bonds.

In today’s digital-first world, the dynamics of customer engagement have undergone a significant overhaul. The once-dominant banner ads, which were the go-to strategy for online promotions, are now seeing waning effectiveness. Micronotes’ engine, emphasizing authentic engagement and boasting game-changing click-through rates, paves the way for banks to foster meaningful, in-depth conversations with their customers.

Unearthing Camouflaged Opportunities

Amidst the vast expanse of data lie hidden opportunities, waiting to be discovered. Micronotes’ recommender engine stands out for its adeptness in pinpointing these concealed gems. Through strategic interactions, it empowers banks to present bespoke solutions, ensuring optimal growth without burdening operational resources.

Versatility: The Hallmark of Modern Banking

The modern banking landscape demands adaptability and versatility, and Micronotes’ recommender engine epitomizes these traits. Whether it’s driving loan growth, championing deposit retention, or amplifying the reach of new digital products, its multifaceted applications highlight its critical role in the contemporary banking ecosystem.

Conclusion

Micronotes, through its pioneering recommender engine, is not just unveiling a groundbreaking product; it’s signaling the dawn of a new era in banking. In a world where data reigns supreme, this engine equips banks with the tools they need to adeptly navigate the complexities of the digital age, ensuring they deliver unmatched customer experiences.

By Xav Harrigin

The Independent Community Bankers of America (ICBA) ThinkTECH Accelerator Demo Day is a nationally acclaimed program that promotes early-stage solutions designed specifically for community banks. The program is known for its commitment to fostering innovation in the banking industry, connecting the most innovative fintech companies with community bankers and industry leaders. At a recent Demo Day, Parker Steed, VP of Sales at Micronotes, delivered a compelling pitch that showcased the company’s innovative, AI-enabled, cloud-based marketing automation solutions for financial institutions (https://www.youtube.com/watch?v=Y_Mt84zq0qI, starts at 39:32).

Steed began the pitch by reflecting on the evolution of banking from in-person branch visits to digital interactions. He shared a personal anecdote about how banking has changed over the years, highlighting the importance of Micronotes’ mission to help community banks maintain strong connections with their customers in an increasingly digital world. He then emphasized the importance of emulating the traditional branch conversations in online and mobile banking environments, a feat made possible by Micronotes.ai’s cutting-edge technology.

Micronotes.ai, based in Boston, serves about 140 community banks in the U.S. The company’s growth has been supported by a distribution relationship with Fiserv and investments from Experian Ventures, TTVCapital, and most recently, Bank Tech Ventures. Being part of the ThinkTECH Accelerator has further enabled Micronotes.ai to connect community banks with their customers using big data, advanced analytics, and engagement technologies.

Steed’s pitch focused on two key areas: deposits and loans. He explained how Micronotes.ai’s technology identifies opportunities for exceptional deposits and initiates conversations with customers to retain those deposits. The company’s AI-driven marketing automation also helps banks predict customer behaviors such as delinquency and attrition, enabling banks to proactively offer solutions like overdraft protection products and retention strategies.

The Micronotes.ai solution goes beyond traditional banner ads in online and mobile banking. It offers 26X the click-through rate (CTR) of banners, more engagement, and most importantly, it starts conversations that enable banks to learn from and about their customers. This approach helps to keep the “community” in community banking.

Steed also highlighted how Micronotes.ai can help uncover “camouflaged small businesses” through the retail banking side of a bank. By identifying these businesses, banks can cross-sell products like small business credit cards or loans without increasing headcount.

The pitch concluded with a demonstration of how Micronotes.ai uses Experian credit data to identify creditworthy customers and find meaningful savings if they were to consolidate their loans with the bank. This personalized approach not only enhances customer experience but also helps banks retain and grow their customer base.

In a world where customers are constantly bombarded by ads from competitors and large fintechs, Micronotes.ai offers a solution that keeps community banks competitive and connected with their customers. It’s not just about retaining and growing deposits or booking better loans; it’s about starting meaningful conversations, developing relationships, and building trust.

Micronotes.ai is revolutionizing the way community banks engage with their customers. By leveraging big data, AI and machine learning, the company is helping banks to better understand their customers, predict their needs, and offer personalized financial solutions. The result is a win-win situation: customers feel understood and valued, while banks increase their revenue and deepen their customer relationships.

If you’re a community bank looking to take your data and make it actionable, Micronotes.ai is ready to help. As Parker Steed concluded in his pitch, “If you need to retain and grow deposits or book better loans, give us a call, we’d be happy to help.”

In the previous deposits-focused article, we discussed how to detect and immediately act on anomaly deposits to keep those deposits from exiting the financial institution’s balance sheet.  In this article, we’ll discuss asking existing customers/members for deposits held elsewhere, programmatically, because that’s always the first order of business.

The most obvious sources of deposits held elsewhere by existing customers/members are the direct deposits being made by your customers/members to other institutions.  The financial institutions we serve have typically established a direct deposit relationship with fewer than 25% of their total customer/member base, leaving a lot of room for growth.   The lack of a direct deposit relationship with so many customers/members reduces the deposit base and increases attrition.  For example, past attrition studies we have published demonstrate that holding all other variables constant, a customer with direct deposit has 0.42 times the odds of leaving the financial institution versus a customer/member without direct deposit*.   For example, if the odds of attrition of a customer without direct deposit averages 10%, the odds of attrition of a customer with direct deposit average 4.2%.  This metric won’t surprise anyone in retail banking, the direct deposit relationship is king**!

So, a simple way to improve both deposits and retention is to programmatically ask your customers/members without direct deposit to establish direct deposit with you like this (this particular example is for loan customers):

Figure 1

The “other” button enables the user to describe exactly what it would take, sometimes surprisingly!

Figure 2

Summarily, use technology to ask your customers what it would take to move their direct deposit relationship, then get the direct deposit relationship to increase deposits and cut attrition risk.  You’ll probably be the only financial institution that ever asked.

In our next installment, we’ll talk about how to:

• Attract customers who can make large deposits.

*Study of 779 customers lost over 2 months out of a total of 67,424 customers total), 283 of which were deemed “profitable.” by the bank.

** “Holding all other variables constant, each additional e-service (e.g. bill-pay, debit card, e-statements) a customer takes multiplies the odds of churn by 0.73.”