“Deposit acquisition is expensive and frustrating. More than a quarter of new deposit relationships are gone within a year. Advances in artificial intelligence software have made it possible for community financial institutions to use it to boost acquisition, cross-sales and retention. But first they must understand what’s required to apply it. AI still isn’t ‘plug and play.’
Competition for deposits from giant institutions on the one hand and aggressive fintechs on the other has put traditional community-based financial institutions on the defensive. Both the large banks and the startup players have been able to capitalize on highly targeted campaigns guided by artificial intelligence tools.