The Role of Tailored Solutions in Banking Success

The Growing Value of Operating Deposits and Customer Expectations in Modern Banking 

Operating deposits are more valuable than ever. They provide a stable source of funding for the loan book and annuity revenues from the spreads on deposits.  

At the same time, customers know the value that their deposits bring to the bank, and they expect something in return: a tailored service to suit their specific needs and streamline the customer experience. 

For banks to retain their current clientele and attract new ones, they need to consider current client issues and how solutions will need to be flexible and evolve with clients as they grow and change through the business cycle.  

We’ve highlighted how tailored solutions drive success across four key areas: customer satisfaction and retention, competitive advantage, market segmentation and increased revenue, and regulatory compliance. 

1. Customer satisfaction and retention 

As consumer awareness grows, clients expect more from their banks. Generic offerings are no longer sufficient; clients expect a more personalized service tailored to their unique business needs.  

By providing a differentiated client experience customized to their specific industry requirements, banks can strengthen client relationships, leading to higher retention rates and winning new clients.   

2. Competitive advantage 

With increased competition, banks must differentiate themselves to attract and retain deposits. From a customer perspective, value-added services are becoming more important, as noted in Accenture’s Commercial Banks Trends Report 2024.  

Clients are looking for more from their banks, and the ones that can offer tailored solutions to their clients have a greater competitive advantage.  

By offering industry-specific configurations and personalized user journeys, banks can offer a more compelling alternative to off-the-shelf solutions.  

At Cashfac, we have 30 years of experience helping our banking customers grow existing and new sector franchises with a single solution, providing unique user interfaces and customer journeys for different industries.  

If banks want to compete with larger commercial banks, they need to think and act like large commercial banks rather than deploy generic capabilities that are not competitive. 

 3. Market segmentation and increased revenue  

To maximize deposit growth, banks must also attract new clients in addition to retaining existing ones. Tailored banking solutions can help banks target different market segments more effectively, ultimately increasing deposits and revenue.  

For example, our solution includes industry-specific modules designed to address the unique needs of various sectors, including escrow, property management, healthcare, and more.  

At Cashfac, we adopt a partnership model with our clients. Once we’ve implemented our solution, we help banks take it to market and win new business. For instance, we helped a multi-state bank extend into healthcare and win $0.5 billion in new healthcare deposits based on our platform.   

4. Regulatory compliance  

Regulatory compliance can make offering a tailored solution or experience for a client a necessity. Different sectors have varying regulations around cash management, requiring customized solutions.  

Our platform can be configured to enable regulatory compliance, including client money segregation requirements. Specific modules, such as our escrow module, are developed with regulatory compliance as a key component. For example, our escrow module includes functionality for American Bar Association rules around client money segregation, interest, and tax.  

By ensuring regulatory compliance, providing tailored solutions not only meets client needs but also mitigates risks for target sectors.  

Cashfac’s solution has passed hundreds of client money segregation audits by banking, real estate, and healthcare regulators across the globe. 

Staying competitive in a dynamic market 

Tailored solutions are essential in today’s banking environment to address rising competition for deposits and customer expectations. By offering personalized solutions, banks can strengthen relationships, drive revenue growth, and ensure regulatory compliance, supporting growth in a competitive market.  

Our digital cash and banking platform is a self-service operational cash management solution, providing banks with a tailored solution that delivers unique client experiences tailored to their industry sectors. 

On a single platform, our solution automates complex cash operations to drive operational efficiencies for banks and their clients. 

Get in touch to learn how our solution can help your bank offer a more customized offering to your clients.