Independent Banker - April 2019 - 60

3 out-of-thebox
freebies
community banks
are off ering
Charitable contributions. Tompkins Mahopac
Bank in Mahopac, N.Y., off ers customers a $200
cash bonus and a $50 donation to their choice of
one of nine local community organizations when
they open a qualifying checking account at the
$1 billion-asset bank.
Service subscriptions. Salem Five Cents
Savings Bank in Salem, Mass., gives customers
a choice of five diff erent monthly subscription
services for one year, worth up to $14.95 a month,
when they open a qualifying checking account.
The $5 billion-asset community bank off ers
options like Netflix, Spotify or Harry's. Customers
need to use their bank debit card to enroll in the
service and will be reimbursed.
Gym memberships. Customers
of Community Bank & Trust, a
division of $1.3 billionasset
Cedar Rapids
Bank & Trust in
Waterloo, Iowa,
enjoyed a free gym
membership when
they opened a
checking account
and met minimum
requirements. The
community bank
deposited one year
of gym membership
fees into the account,
and the customer set up the membership so that
it's withdrawn from the account. -Kelly Pike
in Raleigh, N.C., shifted its strategy and decided to off er
a cash bonus for new accounts. " People today are really
looking for rewards, " says Jonathan N. Krieps, chief
operations offi cer.
Now comparison services and websites that promote
" the best checking accounts " essentially market the bank.
" Our web traffi c went through the roof, " says Krieps,
whose bank off ers $450 for opening a business checking
account, $200 for a personal checking account and $50 for
a nonprofi t account.
The greatest fear for a bank off ering a cash bonus is
" [Our pick-a-prize gift campaign]
creates sales team enthusiasm,
helping them rally around something
with a diff erent way to engage
potential customers in conversation. "
-Terry Cole, Burke & Herbert Bank
that customers will take the money and run, but North
State Bank has avoided the problem by introducing
requirements that help customers change their habits.
To get the cash, North State Bank customers must
wait 90 days and meet minimum requirements within
180 days. For business accounts, that means 50
or more transactions in a statement cycle, while
consumers need at least 20 non-ATM debit
transactions and one direct deposit per cycle.
After 180 days, customers lose the bonus, but
North State Bank contacts customers to help
them avoid missing out.
" We'll call and give suggestions, " says Krieps,
who reports that the increased interchange
income more than makes up for the cost
of the bonus. " We'll say, 'You can use it to
pay your utility bills,' or that 'you're two
transactions away.' "
About a year-and-a-half in, the bank is opening
twice as many business and personal checking accounts.
Retention is also up, helping keep low-cost deposits even
when competitors are off ering higher money market rates.
North State Bank loses 8 percent to 9 percent of the accounts
60 Q ICBA Independent Banker Q April 2019
Independent Banker - April 2019

Table of Contents for the Digital Edition of Independent Banker - April 2019
