Publications & Resources

November/December 2008
Focus: Directors Issues

Win The War For Deposits and Account Acquisition with BancVue and FIRST ROI
WIB’s Newest Endorsed “Value & Income Program” (VIP) Partners

By Anne K. Scully, WIB Service Corporation President

“These are unpleasant facts; I know it. But then most historical facts are unpleasant."
- Aldous Huxley, Brave New World , Ch. 2

The facts are real and not very pleasant: In the battle for deposits and market share, mega and Internet banks have run roughshod over community banks. Today, community banks hold a mere 20% of all deposits, a 50% decline in the last 15 years. How did this happen?

Suffice it to say, community banks are facing challenges they’ve never faced before. Dynamic changes, most notably technology and the Internet, have transformed the financial services marketplace. It’s introduced new competitors aggressively marketing new products through numerous distribution channels to your customers. Factor in our current, ugly economic conditions, rising expenses and shrinking margins and the result is not pretty.

In our view, going back to the days of Jimmy Stewart in “It’s a Wonderful Life” or standing passively on the sidelines are not options for community banks. We believe community banks can retain their competitive edge and increase market share if they adopt a strategy that focuses on innovative products, a real Internet presence, online marketing and leveraging technology to reduce expenses.

REWARDChecking®, REALSite® and FIRSTBranch®, offered by our two newest “Value & Income Program” (VIP) Partners – BancVue and FIRST ROI – give you the tools to successfully implement this winning strategy and win the war for deposits!

REWARDChecking

REWARDChecking, BancVue's flagship product, is a free checking account which offers a high interest rate and ATM fee refunds when consumers meet cost saving and revenue generating electronic banking requirements.

REWARDChecking helps community banks fuel deposit growth by attracting affluent, tech-savvy customers that have been shown to keep higher balances, generate greater fee income and use more electronic services than the average checking account customer.

REWARDChecking accounts are typically twice as profitable to the bank as free checking and the attrition rates are 70% lower. Nearly 500 community financial institutions in 48 states are using REWARDChecking to add millions of new deposits and thousands of new customers while lowering the total cost of funds.

Profitability Guaranteed

BancVue guarantees that its REWARDChecking will deliver profitable results for your bank. If your profits from all of your REALChecking System accounts do not exceed BancVue fees, after one year, BancVue will pay you the difference between the profits and the fees.

FIRSTBranch

FIRSTBranch, offered by marketing partner and WIB-endorsed VIP, FIRST ROI, is an innovative, turnkey platform that gives community banks the tools and marketing mix to transform their brick and mortar branches into a formidable online presence.

Beyond Brochureware to Cyber Branch

From sales-driven website design to pay-per-click marketing to search engine optimization, FIRST ROI can manage your bank’s online presence and work with you to improve performance. FIRST ROI offers your bank a level of pizzazz that meets or exceeds the typical large bank high-budget marketing program and takes your website from “brochureware” to “Cyber Branch” status. They will help your bank leverage the Internet channel to attract new customers, generate new account applications and leads and compete with the mega and net banks online.

Why is this important? According to a recent Forrestor study, 71% of ALL consumers search for their financial services provider ONLINE! If your bank is not “playing” in the Internet space, you’re only tapping into 29% of your potential target market!

Who comprises the bulk of that “71%-sector?” Baby Boomers and Gen Y, the two generations possessing the greatest wealth accumulation potential of all generations

Beyond missing a significant opportunity, factor in account acquisition costs and you will wonder why your bank had not established an online account opening presence earlier. According to Forrestor Research, acquiring new customers via the Internet costs $123/customer versus $328/customer via a brick and mortar branch.

“Determining how to effectively address the continually evolving world of on-line banking was an intimidating prospect for our bank. Fortunately, First ROI provided exactly the answers we needed, which resulted in a sophisticated, competitive, on-line strategy for our institution.”
- Jeff Manser, CFO, Bank of Idaho , ID

REALSite

FIRST ROI also creates a standalone web site, a REALSite, which features each BancVue client’s REWARDChecking product. This interactive site enables consumers to learn about the account and apply for it online.

A True Marketing Partner

FIRST ROI goes well beyond providing top-tier, leading edge marketing content to become your bank’s marketing partner, devoted to your bank’s success. Why? Because their compensation depends almost entirely on your success!

WIB Member Benefit: WIB Members receive discounts on licensing, set-up, REALSite, REALBranch, fees.

Contact: Greg Lander, BancVue (greg.lander@bancvue.com; 623-582-9194)