Suddenly, Banks Want You and are Willing to Pay

by Edward O'Brien 0

In the past few years, consumers could be forgiven if they got the impression that banks didn’t want them as customers. It seems like it’s been one new fee after another.

But lately, banks seem to be putting out the welcome mat, offering more rewards and incentives. New research from found that banks in the 10 biggest markets in the U.S. are actually paying consumers to open a checking account.

The researchers found that banks are now paying between $10 and $400 as sign-up bonuses to open new accounts. But the offers might have a short lifespan.

Financial institutions continue to seek new ways to attract new banking customers as they strive for revenue growth and increased profitability. Included in these efforts are experiments with novel methods to reach prospects, and testing and comparing outreach methods to improve the ROI of customer and member acquisition efforts. Many are using customer and predictive analytics to better understand campaigns and outreach that offer the best potential for success.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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