Situation
Leadership pushed for a marketable, competitive product that drove account activity and revenue. The internal client, exploring options, referenced tertiary apps for local coupons and phone insurance — neither of which would increase account activity and came at a premium.
Additional Context
- Competitive accounts used high-interest promises for shock and awe while having low caps on payouts hidden in the disclosures.
- Fee-free accounts had been outperforming interest-bearing accounts with younger audiences.
- The bulk of Independent Bank’s accounts belonged to customers nearing retirement age.
- Most of the day-to-day profit comes from transaction fees given to retailers.
Strategy
- I suggested that on top of offering a fee-free account we should incentivize profitable behavior (swipes) for higher percentage rates.
- Suggested building a tracker that encourages participation and elevates account activity.
- The competitive 3% interest rate could be marketed despite it not being guaranteed.
