2023 Survey: Banking Leaders Focus on Growth Via Personalization

Earning repeat business from depositors and mortgage borrowers will be financial institutions’ top tactic in 2023, according to a Total Expert survey of bank and credit union leaders finalized in December.

The survey, which polled CEOs, marketing and sales leaders, and mortgage heads, asked leaders to rank their prioritization for expanding deposit products, offering higher rates on deposits, attracting new depositors, increasing digital banking adoption, growing consumer or credit card lending or auto lending, serving homeowners with equity, originating more mortgages from depositors, or generating repeat mortgage business.

After repeat mortgage business, which received 91% of votes, attracting new depositors also was voted a priority, receiving 64% selection from respondents. Serving homeowners with equity and increasing digital banking adoption tied for third place at 55%. Offering higher rates on deposits and growing consumer or credit card lending came in fourth, tied at 35%. The survey allowed leaders to select all tactics that applied.

For 2023, Horicon Bank is focused on “finding opportunities in our current customer base and build appropriate customer journeys to deepen relationships, increase digital adoption, communicate with customers versus at them,” said Chrissy Oelke, AVP, Data Insights Manager. “We want to build campaigns for targeted prospects based on strategic priorities and get more information in our bankers’ hands about their customers.”

Institutions reported that  data and engagement helped them reach their 2022 goals by improving customer understanding, and by creating opportunities to serve them more widely.

On the mortgage side of the business, banking leaders said they used data to learn about customer or member needs. While all said they used data to identify intent in some way, or plan to do so in the year ahead, the most utilized data was listing alerts of partner real estate agents when they put a past borrowers’ home on the market – selected by 44% of all respondents. Using data to increase referral loyalty came in second at 31%.

Institutions also focused on mortgage onboarding powered by the Total Expert platform. In an industry where most loans are sold to the secondary market, financial institutions are ensuring their borrowers do not feel like transactions. Most (56%) said they ensure borrowers are thanked for their business and welcomed using intelligent automation. Most (also 56%) said they use automate engagement to orientate borrowers and provide servicing-related information. Leaders also said they don’t just welcome borrowers.

The majority (50%) used automation to educate borrowers on the ways the institution can help them to attain their financial goals. Another 62% said they are using technology to introduce customers to online banking, encouraging downloading the mobile app, E-statement enrollment, or plan to launch onboarding for mortgage borrowers in the year ahead.

Dart Bank is investing to “glean better information from current data to better cross-sell and deepen relationships with existing customers,” said Bryan Clark, the bank’s Senior Vice President. “These kinds of capabilities matter because today’s borrowers don’t just want to know what’s happening right now — they want their bank to help them understand and prepare for what’s happening next. We want to stay in front of our customers, so they’re much more likely to think of us whenever financial needs arise.”