Developing a Deposit Strategy? Do You Have an Industry-focused Approach?
A week doesn’t go by without a client or prospect asking me what other banks are doing to fund their balance sheets with deposits. My first boss at the bank always said “Banking is easy, we borrow money from customers and then lend it to other customers”. Well, that was in 1982 and while that is a great strategy, it’s obviously not as easy as it sounds.
Recently, I was reading a daily email that I receive from the Correspondent Division of CenterState Bank and they recently researched the estimated top growth industries for 2019. While some of this data may not surprise you I do think it supports a strategy that we have supported for several years. What strategy is that? We believe it’s as important to have a niche-based deposit strategy as it is to have a loan strategy. We have several clients that have representatives attending industry based events to market deposit relationships. If they happen to stumble upon a loan opportunity even better!
Deposits are a little like capital, the best time to gather or raise it is when you don’t need it.
Do you have that strategy?
Neil is a principal in our banking practice. He has more than 25 years of experience in the banking industry, which includes nine years in the private sector. His private industry experiences range from cashier to chief financial officer; however, his strengths are in both the operations and lending areas of community banks. Neil has led some of the firm’s largest bank external and internal audit and FDICIA engagements. Neil also assists clients with other projects such as merger and acquisition transactions and capital planning.
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