Middle-Market Acquisition Program at
$732 Million Bank
Mid-Western Financial Institution Assets: $732 Million DDAs: 20,800
In 1998, this 12-branch institution set out to reduce its overall cost of funds by attracting more low-cost deposits. The institution was considering a free checking strategy but feared the approach would cannibalize much of its existing checking fee revenue. Instead, the institution launched a value-added acquisition program through an alliance with Affinion Group.
The two-tiered program offers a basic package of benefits for maintaining a $100 minimum balance, or account holders may select an upgraded "Plus" account for a $5 monthly fee. The institution's goal was to grow market share while offering a value proposition that would generate a stable stream of fee income.
The strategy worked and was used successfully through two small acquisitions, increasing deposits by 40 percent and growing the branch network to 20.
Over the last few years...
30 years of service
70 million members worldwide
Over 800 million direct marketing pieces mailed annually
46,000 marketing campaigns conducted over the last decade
80 million telemarketing contracts annually
Over 1 million new online members added each year
Multiple industry experience including financial, retail, travel, entertainment, e-commerce, and direct response TV