By Devon Kinkead

The reality check
Traditional institutions have watched $3 trillion flow out to fintech savings and investing apps in just five years — and the leak is worst among younger “Zillennials” who now juggle multiple primary providers and move money several times a month (The Financial Brand). The takeaway from Cornerstone Advisors’ research, featured in The Financial Brand, is clear: product-level primacy matters more than institution-level loyalty, and deposits will keep migrating to whoever solves the customer’s next job faster.

Let’s talk about how to deepen the deposit relationship by expanding wallet share, a proven retention strategy.

Four Micronotes Moves that Expand Wallet Share

Move	How it works in Micronotes	Resulting new products
1. Catch the life-event deposit	Exceptional Deposits engine flags statistical outliers the same day; a micro-interview asks,“What’s the plan for this $85,000?”	CDs, high-yield MMAs, wealth-management or trust accounts — increasing average products per customer immediately.
2. Personalize the cross-sell, don’t broadcast	AI models score attrition risk & intent; only the right customers see the right offer	Uptake of credit cards, personal/auto loans, insurance bundles — without rate giveaways.
3. Route hot leads to humans in real time	Warm lead (name, need, preferred channel) lands in a banker’s queue the same day	Banker closes higher-value, advice-heavy products (brokerage, robo-advice, college-savings, small-biz checking).
4. Reward loyalty instead of raising rates for everyone	Targeted “thank-you” rate bumps or bundled perks only for depositors at risk of flight	Retention of large balances while protecting net-interest margin.

Proof points

• >50% of life-event deposits leave within 90 days if no one reaches out. Institutions using Micronotes contact customers in week 1 and slash that attrition rate.
• In a recent community-bank campaign, 43 warm leads converted into $1.6 million of new CDs and investment balances in 67 days.
• Banks employing Micronotes’ Deposit Retention playbook report double-digit NPS gains and measurable growth in “quality deposits” — balances that stay longer and cross-buy more.

Putting it all together: from 2.1 to 4+ products per customer

1. Detect every large or unusual deposit automatically.
2. Diagnose stated intent via a 20-second micro-interview.
3. Deliver a curated next step:
   • “Grow it” → tiered CDs, managed accounts, robo portfolios, ESG funds.
   • “Protect it” → FDIC-insured sweep, trust/estate services, insurance.
   • “Spend it wisely” → debt pay-down offers, credit card balance transfers, budgeting tools.
4. Deepen the relationship with loyalty boosters (rate-boost, identity-theft protection, financial-wellness coaching).
5. Document & optimize — Micronotes’ reporting surfaces ROI down to the product-level so marketing dollars chase the biggest lift.

Follow this framework and a customer who once carried “one checking + one savings” can, within a single mobile session and a follow-up call, add:

• High-yield savings sub-account
• 12-month “growth CD”
• Micro-investing or advisory account
• Debit card round-up savings rule
• ID-theft protection add-on
• 12+ e-Services (e.g. mobile deposit capture, e-Statements, eAlerts)

That’s five products, stickier balances, and a far higher lifetime value — achieved without blanket rate wars or unwanted email blasts.

Next Step

Run a 90-day Micronotes Cross-Sell pilot on your online/mobile banking rails:

1. Upload customer account data.
2. Launch Micronotes Exceptional Deposits & Cross-Sell dialogues.
3. Measure retention lift, new-product adoption, and incremental NIM.

Within one quarter you’ll have the data — and the deposits — to prove you’re no longer a “payment motel,” but the primary financial partner your customers need in a fintech-first world.

A Recap of our Deposits Webinar with Fiserv

By Devon Kinkead

The Customer’s Quiet Crisis

Your depositor just wired in $85,000 after selling her condo. To the balance-sheet, it looks like great news—but to her, it’s a once-in-a-decade decision point. Within 90 days, more than half of “exceptional” life-event deposits like this one leave the institution when no one reaches out.

The Stakes for Your Institution

Rate volatility, fintech competition, and unprecedented customer mobility have made yesterday’s retention playbook—rate wars, mass e-mail blasts, reactive service—dangerously outdated. Losing just a handful of six-figure balances can erase months of loan growth.

Meet the Guide

Micronotes, a Boston-based fintech and long-time Fiserv partner, positions your bank or credit union as the guide your members need during high-stakes life events. Its promise: automate the old “large-deposit report + banker call” playbook so you intervene while the money is still in motion.

4. The Plan—Data Over Guesswork

Step	What Happens	Why It Matters
Detect	The Exceptional Deposits engine listens to daily balance feeds and flags statistical outliers in real time	Life-event signals surface instantly, not in next week’s/month’s report.
Engage	A personalized Microinterview fires in mobile/online banking and asks the customer’s intent	Captures needs (“pay down debt,” “invest,” etc.) inside the critical 7-day window.
Route	A warm lead—name, intent, requested action—lands in a banker’s queue same day	Enables proactive, hyper-relevant outreach that quadruples retention odds.

Go Beyond the Rate War

Micronotes’ life-event dialogues enable value-rich offers that protect margin:

• Guided wealth-transfer or trust consultations for inheritance windfalls.
• Tiered loyalty bonuses & automatic sweeps into high-yield money-market or CD products when balances exceed comfort thresholds.
• Personalized planning nudges (“Have you reviewed tax implications?”) delivered via mobile.
• Value-added bundles like ID-theft protection that have lifted NPS by 20+ points in pilots.

None of these require across-the-board repricing; they deepen relationships instead of surrendering spread.

Proof in the Numbers

• >50 % of life-event deposits leave within three months when ignored.
• Huge retention gains when the customer is contacted in the first week.
• Institutions report double-digit NPS gains from value-add bundles.

Success Story Blueprint

Community institutions already use the Micronotes Cross-Sell Exceptional Deposits workflow to convert deposit-flight risk into cross-sell growth and higher wallet share. Implementation is “XD-ready” for banks on Fiserv’s XD platform, keeping ramp-up time low.

A Clear Call to Action

1. Audit your last 30 days of large deposits—how many left?
2. Schedule a Micronotes Cross-Sell XD demo to see real-time detection in action.
3. Launch a pilot that marries automated detection with guided banker outreach.

When life events hit, be the financial guide your customers are searching for. Turn that fleeting influx of funds into lasting loyalty—before your competitors do.

By Devon Kinkead

The Story Your Audience Is Living

After three manic years—pandemic‐era liquidity, 2023 outflows into money-market funds, and the 2024 “will-they-won’t-they” Fed pivot—banks are asking the same question BAI poses in its latest Executive Report: How do we restore healthy deposit accounts and deeper engagement? (BAI)
BAI’s research team sees a rebound ahead but with an important caveat: “Positive deposit growth will likely return … but only if institutions focus on quality growth over quantity growth.” (BAI)

The Villain

Rate-induced churn and digital convenience still siphon balances:

• BAI’s 2024 Banking Outlook re-confirmed deposit growth as bankers’ #1 business priority, after 2023’s SVB-triggered flight to safety .
• Quality-deposit hot spots now move by ZIP-code-level pricing, real-time negotiable rates and gamified CDs—all trends spotlighted in the Special Report: Quality Deposit Growth & Customer Retention .
• Digitally opened accounts skew smaller and less loyal, unless FIs intervene with smarter onboarding and offers .

Meet the Guide—Micronotes

Micronotes’ targeted digital conversations operationalise the very tactics BAI urges:

1. Automate the “large deposit list & outreach plan” – To interview customers who just made a large deposit on their mobile phone.
2. Personalise the moment – Don’t advertise, ask and listen — automatically. Large deposits are life events, help customers through those life events and you’ll be richly rewarded.
3. Nurture to stickiness – Automate follow-ups to reinforce relationship depth so balances stay put.

The Plan

Step	What Micronotes Does	How It Maps to BAI + Special-Report Pain Points
1. Diagnose Deposit Drift	In-app Microinterviews + transaction analytics	Captures spikes (tax refunds, bonus season, home sales, inheritance) flagged by ProSight/BAI researchers
2. Precision Product Paths	Let the customer choose what they need (a new mortgage, wealth management advice, a CD) — don’t guess then advertise your wrong guess.	Supports BAI’s call for quality growth
3. Engage & Automate	Conversational offers flow through mobile, online and branch tablets	Meets BAI’s friction-free CX benchmark and boosts digital account averages that currently lag in-branch openings

Call to Action

Schedule a 30-minute Micronotes demo to see how targeted conversations lift deposit balances, cut funding costs, and keep you ahead of the next Fed pivot.

Success—What Winning Looks Like

• 20%+ of new deposits sourced digitally without shrinking average balance.
• CD share stabilises at ~20 % of portfolio—matching 2024 highs—but with longer tenors and lower repricing risk.
• Region-specific campaigns secure a “fair share of checking” in growth markets, just as BAI advises (BAI).

Failure—The Cost of Inaction

Ignore BAI’s warning and 2025 could replay 2023: balances migrate, funding costs spike, and the liquidity meant to fuel local lending evaporates.

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Executive Takeaways

1. Quality > Quantity – BAI’s latest data say so, and Micronotes makes it actionable.
2. Segment Like a Fintech – ZIP-code-level pricing and real-time rate negotiation are table stakes now.
3. Automate or Abdicate – 70 %+ straight-through account opening is the new baseline.
4. Conversation Beats Campaign – Continuous dialogues outperform one-and-done email blasts for retention.

“Positive deposit growth will likely return in the second half of 2024 … [but] focus on quality growth over quantity growth.” — Mark Riddle, BAI Director of Research Intelligence (BAI)

With Micronotes as your guide—and BAI’s research lighting the path—deposit growth isn’t just meaningful. It’s manageable, measurable, and profitable.

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.

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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.

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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​.

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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​.

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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

Deposit Retention Strategies for Banks and Credit Unions in 2025

As we navigate 2025, the landscape of deposit retention presents unique challenges and opportunities. Lessons from past financial crises, coupled with advancements in technology like Micronotes’ personalized cross-sell tools, can guide banks and credit unions in crafting innovative strategies to retain deposits and deepen customer relationships.

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The Deposit Retention Challenge

Historically, periods of economic uncertainty or monetary tightening have significantly impacted deposit behaviors. For example, during the 2008 financial crisis, deposit flight from smaller banks to perceived “too big to fail” institutions underscored the importance of trust, stability, and customer-centric services. The post-crisis era emphasized the role of robust communication and tailored products to rebuild depositor confidence.

In 2025, as economic conditions stabilize and savings rates rise , banks and credit unions must balance competitive rate offerings with personalized engagement to meet evolving customer expectations.

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Strategies for Effective Deposit Retention

1. Leverage Higher Interest Rates

As savings and CD rates increase, banks can attract deposits by offering innovative products with flexible features.

• Historical Insight: During the 1980s, amid soaring interest rates, banks introduced products like Money Market Deposit Accounts (MMDAs) to offer higher yields while maintaining liquidity.
• 2025 Strategy with Micronotes: Leverage Micronotes to automatically identify large deposits and automatically ask if these depositors have plans for their money and need help, add “Growth CDs” that allow partial withdrawals after a lock-in period to standard microinterview response options of CDs and investment advice.

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2. Strengthen Personalization Through Technology

Personalization has always been a competitive differentiator. In the 1990s, the rise of relationship banking emphasized the importance of understanding customer needs.

• Historical Reference: Community banks thrived by focusing on soft information, building trust through personalized interactions during the Great Recession​.
• 2025 Strategy with Micronotes: Use AI and machine learning to analyze customer data and deliver personalized interviews and recommendations. For instance, for accountholders who have a comparatively high risk of attrition and maintains a high checking account balances, Micronotes can suggest products that might be better suited to accountholders’ needs; before s/he take the deposits elsewhere.

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3. Reward Depositors with Loyalty Programs

Rewards for customer loyalty can significantly impact retention.

• Historical Insight: During the 2000s, loyalty programs like “Thank You” rewards in the credit card industry inspired banks to implement similar strategies for deposit accounts.
• 2025 Strategy with Micronotes: Use Micronotes to engage specific accountholders with comparatively high attrition risk scores with tailored loyalty rewards, such as higher interest rates for long-term savings. Example: “Hi Sarah, as a thank you for your loyalty, we’ve increased your savings account interest rate by 0.25%.”

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4. Build on Brand Initiatives to Engage Depositors

Corporate Social Responsibility (CSR) has historically been a differentiator for institutions.

• Historical Reference: Following the 2008 crisis, CSR-aligned financial products gained popularity as banks sought to rebuild public trust​.
• 2025 Strategy with Micronotes: Highlight CSR initiatives through targeted campaigns. For example, use Micronotes to introduce community conscious depositors to “Community Savings Accounts” that help fund community projects.

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5. Deploy Digital Innovations

The adoption of online banking in the 2000s transformed deposit retention strategies by offering convenience.

• Historical Reference: The rise of mobile banking in the 2010s enabled banks to integrate savings tools directly into their platforms, enhancing customer engagement.
• 2025 Strategy with Micronotes: Integrate Micronotes’ technology into mobile banking apps to identify cross-sell opportunities, such as automated savings plans or investment accounts tailored to customer goals.

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Maximizing Cross-Sell Opportunities with Micronotes

Micronotes’ AI-driven platform builds on historical lessons of customer engagement. By offering tailored conversations and product recommendations in real time, banks can increase cross-sell success rates and deepen relationships.

• Historical Parallel: The advent of CRM systems in the 1990s allowed banks to consolidate customer data, paving the way for more targeted offerings.
• Micronotes in 2025: Personalized interactions via Micronotes help customers discover relevant help, services, products, whether it’s a mortgage preapproval, an upgraded savings account, a new credit card, or advice on how to save for retirement.

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Resilience and Trust: Lessons from History

Historical events like the Great Depression and the 2008 financial crisis highlight the role of trust in deposit retention. Transparent communication about FDIC/NCUA insurance limits and financial stability reassures depositors during uncertain times.

• 2025 Strategy with Micronotes: Use Micronotes to proactively communicate these reassurances. For instance, “Your deposits are fully insured, and we’re here to ensure your financial security.” with a “learn more” option.

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Conclusion: Learning from the Past to Shape the Future

Deposit retention in 2025 requires a blend of historical insights and modern tools like Micronotes. By learning from past challenges and leveraging innovative technology, banks and credit unions can position themselves as trusted financial partners, ensuring strong relationships and a stable deposit base.

By Devon Kinkead

When accountholders make unusually large deposits, their intentions for those funds provide critical insight into how financial institutions can guide and retain those deposits. Recent data from Micronotes’ mobile banking microinterviews with exceptional depositors reveals distinct trends in customer preferences and behaviors regarding exceptional deposits. Here’s what the data tells us and how financial institutions can act strategically to help their accountholders through significant life events, evidenced by exceptional deposits.

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Key Insights from the Data

Based on 183 recent responses across 3 financial institutions with accountholders who had an exceptional deposit.

1. Low Interest in Calling for Investment Options (2% of responses)
   Accountholders seem less inclined to call their bank to discuss investment options. This may reflect a broader trend where convenience and immediacy outweigh in-person or telephonic consultations.
2. Investment Interest, Digital Preference (11%)
   A small but notable group prefers to learn more about investment options online. This underscores the importance of robust, accessible, and engaging digital content to capture customer interest in investment products.
3. Minimal Interest in Calling about CDs (1%)
   Similar to investment options, calling about Certificates of Deposit (CDs) garners even less interest. This suggests that traditional outreach methods may not effectively drive engagement for these products.
4. CD Interest, Strong Preference for Learning More Online (33%)
   The majority of respondents interested in CDs prefer online resources. This is a significant opportunity to leverage digital platforms to showcase CD offerings, especially with interactive calculators and comparison tools.
5. Predominance of Other Plans or Indifference (52%)
   Most respondents indicated “not interested” or stated they had “other plans” for their deposits. This could indicate a gap in communication or relevance of the bank’s offerings to customer needs.
6. Rare Disclosure of Alternate Plans (1%)
   Only one respondent shared specific details about their “other plans.” This suggests either a reluctance to disclose financial intentions. For example, “I have a money market, 3 annuities, 6 CD’s, a Roth, an IRA and they all pay more interest than you do.”

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Actionable Strategies for Financial Instutions

Invest in Digital Engagement
With customers showing a preference for online learning about CDs and investments, financial institutions should enhance their digital educational tools. These could include:

• Interactive product pages with videos explaining the benefits of CDs and investments.
• Savings goal calculators to show potential returns.
• Chatbots that guide customers to the right financial products based on their goals.

Targeted Promotions for Investment Products
To engage the small but interested group in investment options:

• Offer tailored digital campaigns highlighting unique investment benefits.
• Use personalized outreach via email or app notifications to nudge customers towards exploring investment products.

Rethink Call Strategies
Given the minimal interest in calling for information, financial institutions should prioritize enabling self-service tools and only supplement them with call-back options for complex queries.

Understand the “Other Plans” Group
The largest group of respondents cited “other plans” for their deposits. Financial Institutions should:

• Conduct follow-up interviews or incentivize customers to disclose their plans.
• Use AI tools to predict behavior patterns based on transaction history and segment communications accordingly.

Highlight Flexibility in Product Marketing
The indifference to traditional products may stem from a lack of perceived value. Highlight the flexibility of investment or CD products and how they can align with customer goals like short-term savings, emergency funds, or wealth growth.

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Framing the Opportunity

Financial Institutions are in a unique position to act as financial guides for accountholders making exceptional deposits. The data shows a clear preference for self-directed digital exploration over traditional customer service methods. By leaning into this trend, Financial Institutions can create a seamless digital journey that informs, engages, and ultimately converts deposits into long-term assets for both the accountholder and the institution.

By addressing gaps in communication and aligning products with customer preferences, financial institutions can capture untapped opportunities, ensuring that every deposit contributes to deepening customer relationships and financial growth. Request a demo to learn more about how Micronotes can help retain deposits and deepen accountholder relationships when it matters most.

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

Deposits aren’t just numbers on a balance sheet—they’re the pulse of banks and credit unions, fueling lending, investment, and operational stability. Yet, deposit retention often takes a back seat to acquiring new customers. With mounting challenges like economic volatility, customer mobility, and rising competition, the ability to retain deposits has become a make-or-break factor for financial institutions.

The High Stakes of Deposit Retention

When a depositor leaves, the ripple effects go beyond just liquidity:

1. Liquidity Stress: A sudden outflow of large deposits can leave financial institutions scrambling to meet obligations, increasing reliance on expensive external funding sources.
2. Erosion of Trust: Large deposits are often tied to significant life events—retirements, home purchases, inheritances. Losing these customers signals a deeper disconnect in building trust during crucial life moments.
3. Regulatory Strain: Attrition can weaken compliance with capital and liquidity requirements, placing the institution at risk of penalties or operational challenges.

In fact, we’ve seen up to 50% of large deposits exit within 90 days without proactive intervention—a sobering statistic for community banks and credit unions with limited resources.

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The Micronotes Advantage: Turning Risk Into Retention

Imagine having the ability to detect when an exceptional deposit is made and stepping in to help. That’s where Micronotes’ Cross-Sell Exceptional Deposits capability excels. The solution empowers financial institutions to:

• Identify Large (At-Risk) Deposits: Micronotes flags statistically anomalous deposits—those that often signal life events.
• Engage With Precision: The platform automated tailored conversations with large depositors, offering personalized solutions like retirement planning, mortgage services, or wealth management, addressing their needs head-on.
• Seamlessly Integrate: Compatible with major digital banking systems, Micronotes ensures effortless implementation without disrupting your operations.

This technology transforms a looming risk into a growth opportunity, helping banks and credit unions retain valuable deposits while deepening customer relationships.

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A Story of Success: Real Customer Insights, Real Impact

Micronotes’ Cross-Sell Exceptional Deposits isn’t just theory—it’s already making a tangible difference for financial institutions. Here are real-world examples of how the platform helped retain deposits while strengthening customer relationships:

1. Preempting Fund Transfers to Competitors: A customer shared, “I was planning on investing into a money market with Wells Fargo at 5.4%.” With Micronotes, the bank proactively engaged the customer, offering competitive investment products that met their needs, preventing the outflow of funds.
2. Providing Access to Expertise: Another customer expressed, “I’d like to speak with an investment advisor.”Recognizing the opportunity, the institution connected the depositor with financial advisors, resulting in tailored solutions that solidified the relationship.
3. Encouraging Long-Term Commitments: When a customer stated, “I’d like to open a CD,” the bank was able to respond immediately through Micronotes, streamlining the process and securing funds for the long term.
4. Addressing Immediate Needs Thoughtfully: A depositor noted, “[I’m planning on using the funds for] vacation and dental expenses.” By engaging with empathy and offering personalized budgeting and savings advice, the institution reinforced its role as a trusted financial partner.

These interactions showcase how Micronotes empowers banks and credit unions to anticipate customer needs and respond with precision, ensuring deposits remain within the institution while deepening trust and loyalty.

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Actionable Strategies for Deposit Retention

While Micronotes provides a technological edge, the broader strategy to retain deposits requires a mix of tools, culture, and customer focus:

1. Personalize at Scale: Use data to understand depositor behavior and offer tailored products. Customers value institutions that recognize their unique needs.
2. Strengthen Relationships: Build trust through regular communication, transparency, and financial advice that aligns with customer goals.
3. Focus on Digital Excellence: Ensure your online platforms are seamless and intuitive. Digital convenience is no longer optional—it’s a cornerstone of retention.
4. Incentivize Loyalty: Offer benefits like higher interest rates for long-term deposits or discounts on loans to loyal customers.

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Looking Ahead: A Future Built on Retention

As banking evolves, one truth remains constant: deposits are the cornerstone of success. For banks and credit unions, retaining deposits is not just a financial imperative—it’s a testament to the strength of customer relationships and trust.

Micronotes’ Cross-Sell Exceptional Deposits capability offers the perfect blend of technology and strategy to help financial institutions not only navigate the challenges of deposit retention but thrive in them. By addressing the root causes of deposit attrition, namely inaction, and engaging accountholders at critical moments in their lives, banks and credit unions can ensure stability, grow their base, and fortify their future.

Your deposits—and your depositors—deserve exceptional care. Let’s make that happen.

By Devon Kinkead

Jonathan Parker’s Insightful Talk

Jonathan Parker, a distinguished professor at the MIT Sloan School of Management, gave a captivating talk at the Micronotes June 2024 Gain and Retain Forum that highlighted the unique integration of quantitative engineering principles with practical financial applications at MIT. While many recognize MIT for its engineering prowess, the Sloan School, which was part of MIT’s founding vision, plays a crucial role in applying rigorous quantitative methods to real-world business and financial problems.

The Legacy and Mission of MIT Sloan

MIT’s Sloan School embodies the institute’s motto, “hand and mind,” by focusing on solving real-world problems using scientific and quantitative tools. This approach aligns perfectly with the needs of businesses and government institutions. Parker emphasized that MIT Sloan is not an isolated academic tower but an active participant in the world, addressing practical issues with innovative solutions.

The Role of Finance in Economic Improvement

Parker, who holds the Robert Merton professorship, highlighted the significant contributions of the finance department at MIT Sloan. He mentioned Robert Merton’s work on the Black-Scholes options pricing model, which revolutionized financial markets by enabling the effective pricing and trading of options. This advancement facilitated risk transfer in financial institutions, thereby transforming the global financial landscape.

Consumer Finance Initiative

Parker discussed his directorship of the Finance Group and the Consumer Finance Initiative at MIT Sloan. Traditionally, business school finance studies have focused on corporate finance and asset management. However, there has been a growing interest in consumer finance, where finance theory intersects with behavioral economics. This initiative aims to understand and improve the financial instruments used by households, such as loans, payments, insurance, and savings.

Intersection of Policy and Academia

Beyond academia, Parker is involved in financial policy, serving on the Academic Advisory Board of the Congressional Budget Office (CBO). The CBO provides nonpartisan economic analysis of legislation, ensuring informed decision-making in Congress. Parker’s work emphasizes the importance of using the best tools and analysis to guide policy, despite the polarized political climate.

Collaboration with Financial Institutions

Parker’s extensive experience includes consulting for Federal Reserve banks and major financial institutions like JP Morgan Chase and Fidelity. He highlighted the importance of partnerships between academia and industry to drive research that benefits both sectors. MIT Sloan collaborates with financial institutions through joint research projects, data sharing for research purposes, and strategic decision-making support, enhancing the practical impact of academic insights.

The Impact of Technological Advancements

A significant theme in Parker’s talk was the impact of technology on finance. The Consumer Finance Initiative at MIT Sloan is particularly interested in how technological changes influence household finance, payments, savings, and lending markets. The availability of vast amounts of data and advanced computing power has enabled unprecedented analysis and understanding of financial behaviors and market dynamics.

Research and Real-World Applications

Parker shared several research projects to illustrate the practical applications of academic work at MIT Sloan. One study explored the effects of tight lending standards on credit markets, showing how strategic screening by lenders can influence market dynamics. Another project investigated the refinancing behavior of households and its implications for monetary policy effectiveness. By sending personalized reminders to mortgage borrowers, the research demonstrated a significant increase in refinancing rates, highlighting an innovative approach to stimulate economic demand.

Future Directions and Educational Innovations

Parker also discussed the development of new courses at MIT Sloan, such as “Consumer Finance and Fintech,” which reflects the evolving landscape of financial education. These courses examine the structure of household finance industries, the impact of new technologies, and the future of financial products and services.

Conclusion

Jonathan Parker’s talk underscored the unique role of MIT Sloan in integrating engineering principles with finance to solve real-world problems. By combining rigorous academic research with practical applications and policy insights, MIT Sloan continues to lead in advancing our understanding of financial markets and improving economic outcomes for households and institutions alike. The Consumer Finance Initiative and other collaborative efforts exemplify how academia and industry can work together to drive innovation and positive change in the financial sector.

By Xav Harrigin-Ramoutar

Today, operational efficiency is crucial for community financial institutions aiming to thrive. Efficient operations streamline workflow, improve service delivery, and enhance customer satisfaction and retention. Automation technology stands at the forefront of this transformation, offering robust solutions that significantly reduce manual workloads and operational costs. By integrating advanced automation features, these institutions can achieve faster, error-free processes, ensuring a superior customer experience. This blog explores how Micronotes’ innovative automation technologies can revolutionize operational practices, setting a new standard for efficiency and effectiveness in the industry.

Streamlined Operations with Micronotes

Micronotes products like Growth Opportunity Analysis and Exceptional Deposition Solution employ advanced analytics to enhance the operational efficiency of community financial institutions. By integrating advanced analytics with extensive banking and credit data, Micronotes automates crucial operational tasks like loan and deposit acquisition.

Key features of Micronotes’ product capabilities include the automatic detection of mispriced loans using Experian data for prescreen marketing. This automation helps financial institutions target and recover loans efficiently, minimizing the need for manual review and analysis. Another feature focuses on managing deposit retention; the system identifies potential deposit attrition and uncovers new business opportunities through behavior-driven communication strategies.

The automation of these processes significantly reduces the manual workload and ensures that these jobs get done, 24 x 7 x 365. Staff members are freed from repetitive tasks, allowing them to focus on more strategic activities that require human insight. Moreover, the use of automation in processing vast amounts of data reduces errors typically associated with manual operations.

The operational benefits are clear: reduced costs from decreased manual labor, lower error rates, and an overall increase in efficiency. This not only enhances the financial health of the institution but also improves customer satisfaction through more timely and personalized services.

Success Stories

Micronotes has notably enhanced the operational efficiency of community financil institutions through its Exceptional Deposit Solution. A recent case study involves a community bank that implemented the solution to target customers with unusually large deposits. By employing personalized engagement strategies and predictive analytics, the bank substantially increased its deposit retention rates within just two months. Specifically, the campaign generated significant leads, resulting in over $1.6 million in new certificate of deposit (CD) purchases. Feedback from the bank highlighted the ease and effectiveness of the Micronotes system, noting an improvement in customer satisfaction due to more timely and relevant interactions. This success story underscores how Micronotes’ technology can transform deposit retention and customer retention, contributing to greater operational success for financial institutions.

Conclusion

Automation is transforming the financial services sector by significantly enhancing operational efficiency, reducing errors, and lowering operational costs. For community financial institutions, adopting automation technologies is no longer just an option but a necessity to stay competitive and responsive to customer needs. By automating routine tasks, institutions can free up valuable human resources for more strategic initiatives, ultimately improving service delivery and customer satisfaction. The benefits of automation extend beyond immediate operational improvements, contributing to long-term financial health and stability. As the financial landscape continues to evolve, embracing automation will be key to maintaining a high level of service quality and ensuring accountholder loyalty in an increasingly competitive market.