Clear Routes To Action Can Drive CD Renewals To Digital

This Month in Retail Banking

Nearly 10% of U.S. retail deposits are in CDs due to mature this quarter and the first quarter of next year. Engaging customers and members through the most accessible channel – digital – will be critical to CD renewal and retention.  

Curinos’ Digital Banking Analyzer research suggests that many providers are unprepared for the coming wave of renewals. They may be pinning their hopes on auto-renewals or branch visits, which could be a costly gamble. Competitors are posting eye-catching headline rates, and because a large proportion of renewing customers are first-time CD holders, there’s no track record to help predict their behavior.  

In building term-product renewal journeys, key digital experiences to consider are integrating renewals into the product’s account home page, displaying prioritized products for reselection and providing support that motivates the user to proceed.  

But to build confidence in the digital journey, three other core considerations are also important: 

  • Tell customers their CD is up for renewal. Relying on mandatory notifications by letter or even email is not sufficient. Fully embracing digital means messaging out of channel with push alerts and, within authenticated channels, through banners, tiles and modals. 
  • Make it easy to renew on the digital platform. For first-time renewals, offer guides and interactive demos, and within the secure channels, emphasize renewal calls to action and quick links. 
  • Steer the renewing customer to the digital solution. Public site pages and account views should clearly prioritize digital as the main channel for renewals. This is an opportunity for providers to highlight the speed and ease of the digital channel, keep customers in-channel and allow them to easily navigate to the renewal page. It’s especially compelling if there are concerns about branch and call center traffic. 

Savings and investment products have well-developed digital capabilities that meaningfully support the customer, including calculators, earnings forecasts and goal-setting guides and tools. At a time when product teams most need to drive competitive advantages and cost efficiencies, term-product renewals need to take a similar leap forward. 

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