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The financial services industry faces increasing pressure to innovate in today's fluctuating interest rate environment. For regional banks and credit unions, effective deposit growth strategies involve more than just offering attractive rates. Leveraging data and analytics is key to enhancing deposit portfolios, improving customer engagement, and fostering financial wellness. By prioritizing consumer-focused solutions, institutions can achieve dual benefits: driving organizational growth while meeting customer needs. For a deeper dive into this subject, check out our on-demand webinar “Growing Beyond Interest Rates: The Opportunity for Demand Deposit Accounts.” The current state of interest rates and market dynamics As interest rates change, financial institutions encounter shrinking margins and heightened competition. The stakes are high: 54% of consumers plan to leave their banks within the next year1, often citing unmet expectations for personalized services and financial guidance2​​. This competitive environment requires innovative strategies to retain customers and attract new ones without solely relying on interest rates. Key challenges: Shrinking margins due to rate volatility. Increased competition from fintechs and alternative providers. Rising consumer expectations for personalized, proactive services. Leveraging data and analytics in your deposit growth strategies Regional banks and credit unions can distinguish themselves by investing in advanced data analytics and personalized engagement tools. These strategies help create value for customers while improving the institution’s operational efficiency and revenue potential. 1. Personalization through financial insights According to Experian data, more than half of consumers expect their financial provider to actively support their financial wellness2. However, one-third feel that current efforts fall short3​. Offering tools like spending trackers, budgeting resources, and personalized credit score improvement plans can help close this gap. 2. Engagement-driven solutions Consumers are more likely to stay loyal to institutions that provide actionable insights. Experian’s partners have seen a 5% lift in 12-month retention rates among customers enrolled in credit and identity programs according to data reported by partners2​. Alerts for credit monitoring and financial updates not only keep customers informed but also help drive monthly logins, enhancing cross-sell opportunities. 3. Identity and data protection as value-added services With the increasing threat of identity theft, proactive identity monitoring and restoration services are becoming critical. Banks offering these features—branded under their name—can boost customer satisfaction and loyalty​​. Practical steps for regional banks and credit unions To capitalize on these opportunities, financial institutions should consider the following steps: Step 1: Develop a customer-centric engagement program Tailor programs to different demographic groups. Millennials and Gen Z are particularly drawn to tech-savvy solutions that integrate seamlessly with their financial lives. By consolidating financial management tools within one portal, banks can help simplify customers’ lives and enhance engagement. Step 2: Focus on retention and cross-sell opportunities Consumers engaged with financial tools, such as credit score trackers or budgeting aids, exhibit stronger loyalty and are more likely to adopt additional products​. Use insights from these tools to offer personalized product recommendations that align with their financial journey. Step 3: Offer premium tiers Institutions can create tiered service packages, starting with free offerings (e.g., basic credit monitoring) and progressing to paid premium packages that include advanced identity protection or financial management analytics​​. Step 4: Utilize advanced analytics for targeting By analyzing anonymized customer data, banks can identify high-value segments and tailor marketing efforts to their specific needs. This targeted approach fosters more meaningful relationships and improves ROI on acquisition campaigns​. Case for Action: Why consumer engagement matters A customer engagement program does more than enhance loyalty, it helps drive measurable outcomes: Retention rates: Over 98% for free services and 91% for paid programs.4 Improved credit scores: Subprime consumers enrolled in credit-building tools see an average credit score increase of 32 points​​.5 Higher satisfaction scores: Some institutions offering comprehensive financial tools report a lift in Net Promoter Scores (NPS)​. Conclusion The path forward for regional banks and credit unions lies in moving beyond rate-based competition and looking to multipronged deposit growth strategies. By leveraging data, analytics, and consumer-focused programs, financial institutions can enhance their deposit portfolios and deepen customer relationships. Now is the time to transform engagement into a growth engine, ensuring long-term success in a dynamic market. Ready to elevate your deposit portfolio with our tailored solutions? Click below to learn more or contact us to schedule a consultation and design a program that meets your organization’s goals. Learn more Watch the webinar 1 Retail Bank Customer Satisfaction Holds Steady but Trust Declines, J.D. Power Finds, 2024 2 Experian internal analysis, 2024 3 MX, What Influences Where Consumers Choose to Bank, June 2023 4 Experian Core metrics analysis, October 2023 5 Experian Data, Credit Score Rates with subprime consumers, June 2022 – June 2023

As Valentine’s Day approaches, hearts will melt, but some will inevitably be broken by romance scams. This season of love creates an opportune moment for scammers to prey on individuals feeling lonely or seeking connection. Financial institutions should take this time to warn customers about the heightened risks and encourage vigilance against fraud. In a tale as heart-wrenching as it is cautionary, a French woman named Anne was conned out of nearly $855,000 in a romance scam that lasted over a year. Believing she was communicating with Hollywood star Brad Pitt; Anne was manipulated by scammers who leveraged AI technology to impersonate the actor convincingly. Personalized messages, fabricated photos, and elaborate lies about financial needs made the scam seem credible. Anne’s story, though extreme, highlights the alarming prevalence and sophistication of romance scams in today’s digital age. According to the Federal Trade Commission (FTC), nearly 70,000 Americans reported romance scams in 2022, with losses totaling $1.3 billion—an average of $4,400 per victim. These scams, which play on victims’ emotions, are becoming increasingly common and devastating, targeting individuals of all ages and backgrounds. Financial institutions have a crucial role in protecting their customers from these schemes. The lifecycle of a romance scam Romance scams follow a consistent pattern: Feigned connection: Scammers create fake profiles on social media or dating platforms using attractive photos and minimal personal details. Building trust: Through lavish compliments, romantic conversations, and fabricated sob stories, scammers forge emotional bonds with their targets. Initial financial request: Once trust is established, the scammer asks for small financial favors, often citing emergencies. Escalation: Requests grow larger, with claims of dire situations such as medical emergencies or legal troubles. Disappearance: After draining the victim’s funds, the scammer vanishes, leaving emotional and financial devastation in their wake. Lloyds Banking Group reports that men made up 52% of romance scam victims in 2023, though women lost more on average (£9,083 vs. £5,145). Individuals aged 55-64 were the most susceptible, while those aged 65-74 faced the largest losses, averaging £13,123 per person. Techniques scammers use Romance scammers are experts in manipulation. Common tactics include: Fabricated sob stories: Claims of illness, injury, or imprisonment. Investment opportunities: Offers to “teach” victims about investing. Military or overseas scenarios: Excuses for avoiding in-person meetings. Gift and delivery scams: Requests for money to cover fake customs fees. How financial institutions can help Banks and financial institutions are on the frontlines of combating romance scams. By leveraging technology and adopting proactive measures, they can intercept fraud before it causes irreparable harm. 1. Customer education and awareness Conduct awareness campaigns to educate clients about common scam tactics. Provide tips on recognizing fake profiles and unsolicited requests. Share real-life stories, like Anne’s, to highlight the risks. 2. Advanced data capture solutions Implement systems that gather and analyze real-time customer data, such as IP addresses, browsing history, and device usage patterns. Use behavioral analytics to detect anomalies in customer actions, such as hesitation or rushed transactions, which may indicate stress or coercion. 3. AI and machine learning Utilize AI-driven tools to analyze vast datasets and identify suspicious patterns. Deploy daily adaptive models to keep up with emerging fraud trends. 4. Real-time fraud interception Establish rules and alerts to flag unusual transactions. Intervene with personalized messages before transfers occur, asking “Do you know and trust this person?” Block transactions if fraud is suspected, ensuring customers’ funds are secure. Collaborating for greater impact Financial institutions cannot combat romance scams alone. Partnerships with social media platforms, AI companies, and law enforcement are essential. Social media companies must shut down fake profiles proactively, while regulatory frameworks should enable banks to share information about at-risk customers. Conclusion Romance scams exploit the most vulnerable aspects of human nature: the desire for love and connection. Stories like Anne’s underscore the emotional and financial toll these scams take on victims. However, with robust technological solutions and proactive measures, financial institutions can play a pivotal role in protecting their customers. By staying ahead of fraud trends and educating clients, banks can ensure that the pursuit of love remains a source of joy, not heartbreak. Learn more

Debt collectors face a multitude of challenges when it comes to contacting the right people at the right time and optimizing their operational processes. We interviewed Matt Baltzer, Senior Product Management Director at Experian, to learn more about how his team is helping debt collectors effectively engage their customers and obtain the most accurate contact data. What is your role at Experian, and how long have you been with the company? I am a product leader in our business that focuses on financial services and consumer data. I’ve been with Experian for 12 years, and the majority of that time has been focused on products that help assess portfolios, improve collections performance, and organize disparate identity information. What are some of the biggest challenges that financial institutions face regarding collection strategies? One top challenge is being able to effectively leverage the latest technology available – which is ever-changing and staying on top of compliance matters. We see press about buzzy tools, such as artificial intelligence and alternative data, but sometimes these are more style than substance. Without a solid analytics foundation and data strategy, it is easy to get out in front of what can be deployed effectively.Another challenge is compliance – which takes many forms depending on the situation. Adoption of new tools and managing an operation at scale require constant attention to regulatory affairs and laws that are increasingly nuanced. What are some key strategies that organizations can implement to better engage their customers and achieve more success regarding collections? It is cliche, but meeting consumers where they are is fundamental to success. This means using an omni-channel strategy, as some consumers simply do not answer the phone anymore. Email, text, and other digital channels are now the norm. But phone calls and mail cannot be completely discarded, as they are still effective for some consumers and as part of a muti-touch strategy.It’s also important to gain an understanding of each consumer’s current financial situation. For some consumers facing difficult circumstances, you may need to monitor for several months to see when they start to improve. Others may be able to begin making small payments now, so it’s important to use tools that help determine the correctly sized payment plan based on their ability to pay. How is Experian helping organizations optimize their collection strategies? Experian offers a full range of solutions that can help improve collections performance. Given the diversity of organizations and needs, it is important to spend time together gaining a better understanding of each operation, including the type of accounts worked, duration accounts are held, any IT constraints, and areas of focus for performance gains. Our team is adept at having these conversations and recommending solutions that fit – sometimes with a phased approach to gradually make gains.Experian is, of course, a credit bureau, but it is also an analytics powerhouse. We can deliver actionable data but also offer both standard and custom solutions to turn that data into meaningful strategies that can be profitably deployed in a debt collection operation. Examples of Experian capabilities include prioritization scores, contact data, account monitoring, custom decisioning, and workflow software. What is TrueTrace™, and how does it work? TrueTrace™ is a solution that leverages a variety of data sources to provide the best available contact information for a consumer at any point in time. We offer processing in batches and real-time, with flexible options for phone, email, and physical address. The product is in use by hundreds of organizations in a variety of industries. What makes TrueTrace unique from other solutions? TrueTrace leverages a wide array of data sources to gain a holistic view of the consumer over time. It references the traditional credit file, alternative credit from Clarity, rental payments, data used in target marketing, select high-quality third-party data, and the postal database. We prioritize high quality results and use proprietary logic to rank or score the contact elements. Clients are very happy with the quality of results, and the quantity is on par with other vendors.We have launched an updated version of TrueTrace that takes advantage of the latest data science and identity graph technology. Using mostly the same data sources, we have substantially improved both hit rate and the quality of results. The foundation built will also enable us to more effectively add new data sources in coming years. I’m always excited to meet with clients and hear about their experience with the product, so it’s an exciting time. Why is improved matching accuracy and higher quality data so important when it comes to collections? Like most things, it comes down to money. When a skip trace vendor provides “new” contact data for a consumer, that will typically be used to attempt to engage the consumer in short order. That could mean a mailing, a phone call, or an email. While those all carry different costs and options underneath, there is both direct cost and time entailed. If you are attempting outreach with a channel and contact data that may not be accurate, it is wasting valuable time and incurring costs – such as postage and agent time. Beyond that, you face compliance and reputational risk if you are engaging the wrong person on a debt.Finally, most solutions bill on a “per hit” basis – meaning our clients pay only when we do return new information. This all adds up to quality, accuracy, and configurability being essential for a return on investment. In redeveloping TrueTrace, we set out to balance an increase in coverage without sacrificing the quality that we have been known for, and I think we nailed it. What would you recommend to financial institutions looking to improve their collection process? We published a white paper on a quantitative study done on our Collection Triggers product that showed how some events correlate with a 250% lift in payment performance on a charged off account. I would also encourage anyone interested in learning more to contact using the links below. Visit our website to learn more about TrueTrace™ and how it can help your organization improve right-party contact rates with quality contact data. Learn more