Pub. 5 2017 Issue 1

www.uba.org 16 A large majority of respondents to Promon- tory Interfinancial Network’s Q3 2016 Bank Executive Business Outlook Survey (63.2%) indicated that they see in-branch sales as an essential channel for attracting retail de- posits—double that of any other marketing channel. Branches play a more secondary role for other types of deposits, though they are still considered valuable for corporate deposits. Forty-two percent of respondents identified branches as being “very” or “somewhat” im- portant for attracting corporate deposits, be- hind only direct sales outreach. The response was nearly identical by bank size, with both larger and smaller community banks seeing value in branches. ADDING BRICKS TO CLICKS While traditional branches have remained vital to community banks, the same cannot be said of traditional media marketing. Outside of branch marketing, community banks are showing a distinct preference for digital marketing channels over traditional media (print, broadcast, direct) for attracting retail deposits. Among the media marketing channels presented, 78% of respondents indicated that online advertising was “very” or “some- what” important for attracting retail deposits, with 21% considering online channels “very” important. The percentage of respondents recognizing digital as either “very” or “some- what” important in attracting retail deposits was greater than print (74%), broadcast (51%), or direct (57%) marketing channels. Larger community banks—with assets between $1 billion and $10 billion—were more likely to consider print and broadcast channels “very important” for attracting re- tail deposits, but these forms now lag online advertising with all respondents. Community banks have, on occasion, been characterized as lagging wider business trends when it comes to the adoption of technology. However, in this regard, com- munity banks may actually have adapted ahead of wider marketing trends. A study by eMarketer showed that, even as more and more ad spending moves to digital channels, broadcast advertising spending is expected to continue to exceed digital ad spending in the United States at least until 2018. For community banks that are often working with constrained ad budgets, digital mar- keting channels generally represent a more efficient and targeted method for reaching customers, either bringing them in to a branch, or engaging fully online. n About Promontory Interfinancial Network Promontory Interfinancial Network offers unique services that bring banks and other institutions together in a way that helps each to benefit from the Power of ManySM—enabling them to offer services that otherwise might be too difficult or costly for them to offer on their own and providing them with tools to help manage their balance sheets. Promontory Interfinancial Network’s services include Insured Cash Sweep®, CDARS®, Bank Assetpoint®, Residential Mortgage NetworkSM, IND®, and Yankee Sweep®. For more information about Promontory Interfinancial Network and its services, please contact Glenn Martin at (866) 776-6426, ext. 3462 or gmartin@promnetwork.com. © 2017 Promontory Interfinancial Network, LLC Community banks have, on occasion, been characterized as lagging wider business trends when it comes to the adoption of technology.  Attracting Deposits — continued from page 15