Capturing UFOsUnparalleled Funding Opportunities

Neil Stanley

Factors in Assessing Your Current Situation

- Long-term Deposit Volume Trend- Brokered Deposit Volume Trend- Other Borrowed Funds Volume Trend- Cost of CD Interest Expense Compared to Peers- Cost of Funding Earning Assets- Change in CD Interest Expense- Competitive Pricing Position- Loan-to-Core Deposit Level and Trend- Overall Financial Performance- Number of Offices- Market Footprint

Funding Volumes/Trend

Cost of Funding

Marketplace Position

Funding Needs

Marketplace PositionPros and Cons to This?

APY

Marketplace PositionPros and Cons to This?

APY

Marketplace PositionPros and Cons to This?

APY

Are your depositors going to settle for this?

How are Your People

Responding to Ads Like This

From Competitors?

How are Your People

Responding to Ads Like This

From Competitors

Who Are Closer to Home?

Bankers Have New Tools

10 Ways to Make CDs Cool Again

https://www.linkedin.com/pulse/10-ways-make-cds-cool-again-neil-stanley/

Switch to a Dynamic Rate Sheet

AdaptableAdd your current standard terms, rates, and logo.

Value DepositorsLet your depositors know it’s about them by creating a rate sheet that uses the depositor’s name.

Straight TalkTurn APY into terms your customers know and understand.

Simply plug in the amount a customer wants to deposit and show your offerings in dollarsrather than basis points alone.

Show How You Compare in Dollars

Compare Your RatesGive your frontline easy access to survey data.

Survey DataSurvey data is uploaded to the tool on a weekly basis to keep your team up-to-date with the current market.

Win!Data suggests that depositors who are given options in terms of dollars per month are more likely to stay with your institution.

Customize Maturity Dates & Offer Relationship Pricing

Anticipate NeedsOffer and price certificates that mature at any future date.

Examples include:• Tax day• Year-end• Birthdays• Graduations• Anniversaries

Retain Maturing CDs with Limited Edition Savings

Retention ToolAn attractive rate with the ultimate in flexibility.

Safe to UseLimited to maturing certificates only. No new deposits.

Compliant with RegulationIt is a simple savings account. 1.70%

As Interest Rates Rise Savers Have New Options

Financial Institutions Like Yours are Delivering Value to Depositors

in Many New Ways Including:

Better Savings Account Products

“Right-Sized” Early Withdrawal Penalties

Refinancing

Growing Properly-Priced Retail Deposits Today

https://thefinancialbrand.com/73678/banking-companion-deposit-account-cd-savings/

There is no guarantee that retail depositors will remain content as interest rates rise. To combat the potential of

attrition, banks and credit unions are using new approaches to attract, negotiate, and expand retail

relationships with properly-priced deposits.

New Deposits Accounts Deliver the Best of CDs and Savings

• Open and fund like a CD• High yield like a CD• Variable rate like a savings account• Withdraw any time, like a savings

account

Better Savings Account Product

The Companion Deposit Account

Similar to Limited Edition SavingsIt is a simple savings account.

Attract New MoneyCreate an offer that appeals to a potentially broader demographic than traditional stand-alone certificates.

1.80% Variable RateYou control the interest rate.

(Sample Results)

6,512,924.301,420,087.32

The Companion Deposit Account

Ideal New Relationships(Sample Results)

Early Withdrawal PenaltiesAre Not the Same Between Banks

https://www.bankofthewest.com/personal-banking/savings-accounts/cd/premium-mm-cd.html

Sample Penalty………

Have You Increased Your EWP?

Why increase Early Withdrawal Penalty?

Has it helped? What have been the benefits?

What does an effective EWP do? Protect the F.I.

Depositors hate penalties! Don’t you want more depositors? Why do something they hate???

Do what depositors like that is also good for you!!!

Depositors will Increasingly Check the Penalties

Offer “Right-Sizes Penalties” with CDtwo®

“Right-Sized Penalties” are determined on day of redemption and are never more

than conventional penalties for the bank. It is always better to use CDtwo®

“Right-Sized” Early Withdrawal Penalties

Which do you think depositors will choose if you bring this to their attention? $4,880 or $146 early withdrawal penalty?

http://www.bankps.com/Pages/CDtwoRedemptionPublic.aspx?userid=TSBank

“Right-Sized” Early Withdrawal Penalties

You can Protect Your F.I. while giving Depositors a Better Investment Option

100,000 – 99,854 = $146 Penalty Today

The Big Picture Opportunity

Every CD conversation should close with a conversation about the bigger picture.

Your people are hesitant to ask about other deposits.

Many Baby Boomers depositors have refinanced their mortgages many times over the years.

Now You Can Help Them Refinance Deposits!!!

GrowthMargin EnhancementRetention

APY

Creating an Effective Pricing Strategy

1

1 – Companion

GrowthMargin EnhancementRetention

APY

A More Effective 7-Stage Approach

21

APY

1 – Companion2 – Standard

GrowthMargin EnhancementRetention

A More Effective 7-Stage Approach

2

3

1

1 – Companion2 – Standard3 – Promotional Specials

GrowthMargin EnhancementRetention

APY

A More Effective 7-Stage Approach

2

3

4

1

1 – Companion2 – Standard3 – Promotional Specials4 – Customized5 – CDtwo

GrowthMargin EnhancementRetention

5

APY

A More Effective 7-Stage Approach

A More Effective 7-Stage Approach

APY

2

3

4

61

1 – Companion2 – Standard3 – Promotional Specials4 – Customized5 – CDtwo6 – Limited Edition7 – CD Refinance

GrowthMargin EnhancementRetention

5 7

Sequential Sales Process Opportunities• Companion Deposit Account – Be Relevant Again

• Standard CDs – Keep Interest Margins Healthy

• Promotional Specials – Focus on Getting Positive Attention

• Customized CDs – Offer the Ultimate in Flexibility of Term

• CDtwo® with “Right-Sized” Penalties – Present Better Options

• Limited Edition Savings – Reward Loyalty with Desired Liquidity

• CD Refinance – Be the Heroes who Deliver Windfalls

1 – Companion2 – Standard3 – Promotional Specials4 – Customized5 – CDtwo6 – Limited Edition7 – CD Refinance

GrowthMargin EnhancementRetention

Total Deposit Impact!

Financial Institutions using the suite of CoreCD® Package and Premium services

grew properly-priced retail deposits faster!

From what you observed today, Which of these statements apply?

• We could provide more flexible options for retail depositors.

• Depositors could better recognize that we are pricing competitively without over-emphasizing interest rates.

• The sales tools we saw are simple to understand and easy to use.

• I can see how depositors would appreciate the new things we saw today.

• I can see how our front line, especially the high-performers would really like this.

• I can see how Companion Deposit Accounts, “Right-sizing” early withdrawal penalties, and refinancing CDs of our competitors could help us grow much faster.

• The ability to make more profit is clearly connected to winning and retaining more properly-priced long-term deposits.

• We don’t want our competitors to get these tools first.

www.thecorepoint.com