Banks cultivate 'deposit culture'

Central Penn Business Journal, Sep 26, 2008 by Arnold, Leslie

REGION

To attract more deposits, several banks in southcentral Pennsylvania are counting on new initiatives.

In an economic climate in which lowinterest rates offer little reason to stow money into a traditional savings account, PNC Bank, Commerce Bank/Harrisburg and Fulton Bank are promoting a "deposit culture." The quest is to locate more funding sources.

New to Lancaster Countybased Fulton Bank is a chief deposit officer, a position awarded to E. Philip Wenger. He also continues to serve as senior executive vice president of community banking for Fulton Financial Corp. In his added role, Wenger meets weekly with a committee of retail experts to generate new ideas and promotions to gain deposits at Fulton's 10 area banks.

"Deposits are more critical than ever," Wenger said.

He also said that funding sources for financial institutions have dried up in the past 12 to 18 months.

Since recent interest rates have been less than attractive, core deposits in the banking industry have decreased, Wenger said, as evidenced by a 2 percent drop in 2007 at Fulton Bank branches.

But with a new approach to customer service, Wenger said Fulton Bank experienced a 2 percent growth in deposits from the first to second quarter of this fiscal year. Wenger credits Fulton's new customer-service program, which has a goal of providing a superior customer experience. Launched this year, the approach aims to make customers think of Fulton first for banking needs.

The program trains its employees to care, listen, understand and deliver. Fulton's nearly 4,000 employees are learning in groups of 25 to 30 to increase personal sensitivity. Throughrole playing and on-site observation, the Fulton staff members are now charged with learning how to make customers think of Fulton first, no matter their need.

That same desire to exceed customers' expectations has been the goal of Commerce Bank, based in Swatara Township. The bank's 33 locations in southcentral Pennsylvania are known as stores, not branches, said Cheryl Riebling, vice president and senior retail-market manager.

Commerce's deposits have grown, Riebling said. Total deposits were up by 7 percent last year compared with 2006. In the past five years, the bank's total deposits have increased an average of 15 percent annually.

The numbers don't surprise Riebling. She said the bank began with customer service in mind - and continues that focus by pushing its employees to enroll in its Commerce University. The name refers to any of the bank's 56 programs available to staff for training and advancement.

Increasing comfort and convenience is why Pittsburgh-based PNC Bank, with locations throughout southcentral Pennsylvania, introduced its online feature, the "virtual wallet," in August. The program aims to help tech-sawy customers achieve their financial goals and increase their deposits.

The Web accounts can be opened only online. New customers can open combined checking and savings accounts with $25. Then, they can add and move money from primary checking to short- term savings to long-term savings plans with afew mouse clicks.

"All you have to do is punch the pig" to deposit money, said PNC spokesman Fred Solomon. Or customers can just move the "money bar" to shift funds into a special reserve, such as saving for a car.

To date, "PNC has been pleased with the response to virtual wallet's impact on increasing deposits," Solomon said.

BY LESLIE ARNOLD

Contributing Writer