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Competing for Deposits: Acquisition and Retention Strategies

August 2021 | Savings, CDs, and MMAs | Direct Banks as Competitors | Short-term Safe Havens vs. Long-term Core Accounts | Market Uncertainty
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It is an unusual, uncertain time for financial-service providers. For the first time in many years, the personal savings rate of consumers has increased while their spending has declined during the COVID-19 pandemic. Checking account balances are up as consumers park funds until the time is right to make changes. Some industry watchers have described the situation as the “coronavirus deposit bonanza.”

At the same time, interest rates are extremely low. Online-only banks (or direct banks) who have marketed high-yield savings accounts and CDs are adjusting their rates to reflect the market. In this environment, it becomes essential for financial-service providers to examine their deposit acquisition and retention programs.

How are consumers and key market segments responding to the uncertain environment? What changes have been made as consumers move funds between various accounts, and what is likely to happen in the future? In this study, Phoenix Synergistics will measure consumers’ attitudes, behaviors, and money-movement patterns to assist providers in developing strategies for deposit acquisition and retention.

 

Research Objective

This study examines consumers’ savings attitudes, behaviors, and money-movement patterns to assist providers in developing strategies for deposit acquisition and retention.

Research Design
National survey – The survey will include 2,000 online interviews with consumer financial decision-makers age 18 or older.

Major Competitor Profile

A profile of overall financial activity for the top financial institutions used will be included as part of the project report.

Project Report Outline

  • Strategic Insights with key findings and implications
  • Competitive Intelligence
  • Survey Analysis
  • Survey Methodology

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