#Bank dormant account policy how to#

Once they are truly in that danger zone of becoming dormant or churning, incentivize them to do things like using their debit card or deposit money into their bank account. When trying to reduce attrition, sometimes you have to pull out all the stops, which is why we recommend offering incentives as a strategy for re-engaging inactive or pre-dormant account holders. Not only can they automate these messages, but they can also segment and personalize communications to be relevant based on specific product combinations, balance roll-ups, buying propensity, spending habits, or demographics. Just like with inactivity reminders, Core iQ users can automate pre-dormancy communications in the platform with the right data feeds. In fact, it can be even more important for re-engaging those lost accounts. Don't be afraid to customize your re-engagement strategy and use segmentation and personalization just like you would with any marketing promotion strategy. These communications can differ from your inactivity reminders. Once you know how you define a dormant member, determine the timeframe prior to them reaching dormancy that you'd like to start sending automated retention and re-engagement communications. Then you'll want to set up a similar automated communication schedule to identify those accounts or account holders. First, you'll need to determine as an organization how you define a dormant member. Similar to your inactivity reminders, you can also set up pre-dormancy communications. SET UP AND AUTOMATE PRE-DORMANCY COMMUNICATIONS The best part? You only have to set up this account inactivity automation once. If you are a Core iQ user and have the right data feeds and last activity date for your deposit account ancillaries mapped into the system, you can quickly and easily set up an automated communication plan to remind your account holders that they haven't used their debit card, deposited money into their account, or signed in to online banking, in a certain amount of days. These reminders can be things like account benefits reminders, simple 'don't forget to log in to your online banking account' or 'don't forget to use your debit card this month to earn rewards.вЂќ They can even say things like, 'We miss you.' Setting up reminders to trigger based on inactivity can help you to re-engage your account holders before they go completely dormant or churn. Has a customer or member not logged into online banking, used their debit card, or deposited money into their account in 30 days? Set up an automated reminder.

#Bank dormant account policy how to#

So now that we've covered the steps to take to prevent customers or members from becoming dormant or inactive, let's talk about how to nurture those that still find their way into those categories: SET UP INACTIVITY REMINDERSД¬onsider setting up automatic reminders that trigger based on inactivity of your products or services. Some ideas for regular engagement include things like sending birthday and anniversary messages, holiday branch closure notices, and timely, relevant and personalized product offers. This is why we constantly urge our customers to have a regular communication and engagement strategy in place. If they're not properly tended to, they wither. It's important to remember that your banking relationships are just like any other relationship. Taking things a step further, what can banks and credit unions be doing to prevent customers or members from even reaching the pre-dormancy stage? Communicate. It should be extensive and regularly monitored and tweaked for continual success.Д«ut it shouldn't just stop there. This means that brand new relationship onboarding should be a top priority. As we've mentioned before, new customers or members are three times more likely to show attrition within the first 90 days of opening a new account. It's important to emphasize that the first 90 days after acquiring a new customer or member are the most critical days in that relationship. These ancillary products - or convenience products - are great indicators that your customers or members are engaging with their accounts. Most financial institutions agree that fully-engaged deposit account holders will have (and use) additional products like bill pay, eStatements, online or mobile banking, and direct deposit. Let's first start by looking at what we define as a fully-engaged, active deposit account relationship. So, we have put together a few best practices for engaging (or re-engaging) inactive customers or members based on some of our clients' successes. Attrition continues to be a hot topic among banks and credit unions. However, all financial institutions will inevitably run into some issues of inactive, pre-dormant, or dormant account holders. Studies have shown that building comprehensive onboarding programs is the best way to develop fully-engaged and profitable customers or members.