Marketing Insights - Savings and Deposits

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Marketing Insights
Savings and Deposits
August 2015

Merkle POV and Commentary
“In this edition of Marketing Insights: Savings & Deposits, we continue to see many familiar
themes around innovation, technology and relationship banking. Alternative banks are definitely
here to stay and pushing innovation by providing money management options that align with the
digital customer. New customers who only need basic financial services are opting for mobile-
only or online-only banks. We especially find that new customers are more likely to use online-
only banks for their savings accounts than checking accounts.
The digital consumer skews younger, and remain the most likely to open accounts online.
Millennials choose their banks for online banking services, reasonable fees, branch convenience
and loyalty rewards programs. The evident growth of these digital customers continue to drive
the debate around how banks should invest in physical interaction versus digital account
management.
Does your organization have the right technology in place to support the account management
needs of digital customers? As customers demand more tools to support self-service, the
integration of mobile banking, text alerts, ATMs and new channels is imperative.
Brian Campbell
Senior Director, Bank Marketing Strategy
Deposits Subject Matter Expert
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This is a sample. Visit our blog to download the full
presentation.

Personal Savings Rate Rises
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Source: U.S. Bureau of Economic Analysis; “Consumer Spending Flat; Income, Savings Rise.” USA Today. June 1, 2015
Implications: To encourage consumers to increase their savings, banks can promote automatic deposits and goal
trackers. These PFM tools, in conjunction with savings goals tools, allow customers to examine their
expenditures to make decisions about discretionary spending, which could allow them to save more.
The annual savings rate, 5.6%, is higher than it was a year ago, and significantly higher than the pre-recession norm
of around 3%, according to the Federal Reserve. Economists believe there will be an uptick in spending now that
more people have jobs and as a result from the savings they’ve accumulated from the big drop in gas prices.
Personal Savings Rate
presentation.

The Rise of Mobile RDC
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According to a recent report from Celent, remote deposit capture is projected to account for approximately 33%
of retail bank deposits by the end of this year and 50% by 2016. Celent also reported that banks are seeing that
RDC-related losses are equal or below established thresholds, resulting in lower risk and compliance concerns.
Implications: As physical check deposits decline and more consumers to turn to their smartphones, remote
deposit capture is helping banks to migrate branch-based deposit activity to the digital channels, reducing cost
and increasing customer satisfaction.
Sources: “Remote Deposit Capture Displays Mobile’s Potency in Banking: Report.” Mobile Commerce Daily. June 1, 2015;
“State of Remote Deposit Capture 2015: Mobile Is the New Scanner.” Celent [Report]. May 26, 2015.
Consumer Mobile Remote Deposit Capture (mRDC) Adoption
presentation.

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Gamification Quickly Gains
Popularity
Sources: “BBVA Compass Seeks to Shorten Customer Journey with New Banking App.” Mobile Commerce Daily. June 18, 2015; Mass Mutual RetireSmart website
Gamification is receiving a great deal of attention from industry experts lately, revealing itself as a top technology
trend which enables a brand to differentiate and enhance the user experience.
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MassMutual’s RetireSmart site,
promoted a “Your Future
Moves” game where users could
upload a picture of themselves
and answer a few questions to
get a peek of what they might
look like at retirement age.
In May, BBVA Compass launched
BBVA Hoops, a basketball-themed
mobile gaming application aimed at
spurring social media engagement
to drive brand awareness and build
client relationships.
Implications: Gamification enables banks to further engage with users based on the unique and insightful data
collected, while merging entertainment and fun with financial services.
Wells Fargo is gamifying
financial literacy through a game
called "Retirement City," to
encourage millennials to take
control of their finances.
presentation.

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Millennials’ New Approach to
Budgeting
Sources: “Millennials' Take on Budgeting Is Fueling Prepaid Innovation.” Advertising Age. April 27, 2015; Northwestern Mutual’s 2014 Planning and Progress Study
A recent study by TD Bank reveals that Millennials—wary of amassing debt and overdrafting their accounts—are
budgeting differently than previous generations and are increasingly turning to prepaid cards and other tools to
manage their spending.
Implications: With Millennials more averse to carrying debt, banks can make customers feel more comfortable
by providing tools that promote responsible financial management. By monitoring the evolving behaviors of
consumers at this life stage, banks will be better positioned to capitalize on emerging opportunities.
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Wary of amassing debt and overdrafting
their accounts, the study found that
millennials are more likely than the
general population to give themselves an
allowance or hide cash from themselves
to prevent overspending.
presentation.

Client LogoMoven’s New Impulse Savings App
Source: “New Moven App Encourages Savings, Eliminates Product Silos.” The Financial Brand. May 13, 2015.
Moven recently introduced a mobile banking app that uses real-time contextual insight to encourage savings,
discourage impulse purchases and provide emergency funds seamlessly on a mobile phone or wearable device.
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The color-coded Spending Meter®
home screen makes it easy to turn
spending insights into savings behaviors.
The “Lock Away Savings” feature
responds to users behavior,
notifying users whenever they
spend below their average and
encouraging them to set it aside.
The “Break the Glass” feature
employs behavioral gamification
to make users think twice before
unlocking their savings.
Implications: Moven is replacing traditional bank products and services with a financial offering designed to aid
its users in managing and improving their financial well being.
presentation.

Thank You!
merkleinc.com
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Marketing Insights - Savings and Deposits

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