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Echo Partners Community Bank Blog

    Deposit Profitability:  You Can't Fix It If You Don't Know That It's Broken

    [fa icon="clock-o"]} [fa icon="user"] Howard Lothrop [fa icon="folder-open'] deposit profitability, analytics

    I loved games growing up.  Did you ever play "Pin the Tail on the Donkey" when you were a child? Children playing on colorful kindergarten playground.jpeg 

    You know the game.  You are blindfolded, spun around until half dizzy, and then attempt to blindly pin a "tail" on a picture of a donkey.  Usually, it didn't end well, with tails pinned all over, but not often on the actual donkey.

    That's exactly what deposit profitability is like.  You blindly spin in circles and wildly attempt to make the right decisions.  And this doesn't end up any better either.

    It's a real problem.  It's costing your bank some serious amount of profit and inefficiency.

    Forget the profits for a minute (just a minute) and think about resource allocation.  If 50% of your deposit relationships cost you money, how much more do you throw away just servicing them?

    Now I want to be clear.  I am not advocating running off business.  

    But if you are going to open an account, you owe it to your board and your investors to be sure that it's done at a profit.

    Let me know if I can help you identify what needs fixing.

    Do you want to grow your bank profits with little to no risk? Click Here to  Discover How
    Howard Lothrop

    Written by Howard Lothrop

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