From a bank’s perspective, it is much more efficient to absorb members by partnering with a large platform whose loyalty has already been proven, rather than pouring marketing costs into attracting tens or hundreds of thousands of new customers.Customer Acquisition Cost (CAC)‘ It becomes a management strategy.
Secrets of bank financing: Why do we covet ‘deposits’ over term deposits?
Looking at the characteristics of these affiliated products, they are often in the form of ‘parking accounts’ or ‘affiliate savings’ rather than high-interest term deposits. And a bank official says, “Just putting money in the account has a funding effect.” What exactly does this mean? To understand this, you need to know the bank’s profit structure, NIM (Net Interest Margin).
① What is ‘money’ to banks?
For banks, ‘money’ is ‘raw material’. Just as a manufacturer buys raw materials to make and sell products, a bank receives customer deposits (raw materials), makes loans (products), and receives interest. At this time, how cheaply raw materials are imported determines the bank’s margin.
② Term deposit vs. low-cost deposit (deposit)
term deposit: From the bank’s perspective, it is an ‘expensive raw material.’ You have to pay interest of 3-4% per year to get money. The recent decrease in term deposit balances at the five major banks also means that banks have become burdened with raising money by paying unreasonable high interest rates.
Regular deposit/withdrawal account (deposit): This is ‘low-cost deposit’. Parking accounts, where customers temporarily store money to receive McDonald’s coupons or Olive Young discounts, have very low interest rates (0.1% to 2%) or are conditional. From a bank’s perspective, it is possible to raise enormous funds at ‘almost free cost.’
In other words, this is the bank’s strategy. “Instead of using term deposits that require expensive interest, let’s use hamburger coupons or discounts on cosmetics as bait (expenditure) to encourage customers to just leave their salaries or spare funds in our bank accounts (securing low-cost funds).” This is the bank Advanced financial strategies to address incoming balance shortfalls and maximize profitabilityno see.
