February 10, 2010:  According to Chicago-based Mintel Comperemedia, bank marketers may expect five significant changes in the industry for 2010.  These changes involve:

1) The end of "totally free" in checking direct marketing;

2) More comprehensive rewards programs;

3) Programs designed to increase deposits;

4) More aggressive debit card marketing; and

5) An increase and expansion of cash incentives.

Marketing Daily quotes Susan Wolf, vice president of financial services at Mintel Comperemedia, commenting, "From the fall of free checking to the rise of comprehensive banking rewards programs, banks seem poised to make 2010 a year of innovations.  The biggest challenge will be finding new opportunities for revenue."

According to the Marketing Daily article, one way that banks will attempt to increase revenue in 2010 is by creating automatic account builder products that boost deposits. Leading players Bank of America and Wachovia already feature savings programs — Keep the Change and Way2Save.  Capital One has just launched SmartCents checking.  The objective with deposit-building accounts is to get customers invested in multiple products to improve retention while growing deposit balances.

According to reports from Mintel Comperemdia, Capital One and Key Bank are already offering $200 and higher as a cash incentive for opening a checking account.  Mintel predicts that these cash offers will grow into a "hot" direct marketing tactic to gain accounts, with cash incentives growing even more enticing. 

Source: Tanya Irwin, Marketing Daily