Old Dominion National Bank Enhances Deposits Through CD Valet Partnership

In a significant move within the financial sector, Old Dominion National Bank (ODNB) has taken a bold step towards innovative marketing in the realm of deposit acquisition by partnering with CD Valet, a digital marketplace designed to attract savings deposits effectively. This collaboration aims to optimize their Certificate of Deposit (CD) campaigns and marked the launch at the American Banker's Digital Banking Conference.

Understanding the Partnership

The partnership between ODNB and CD Valet has proven to be mutually beneficial, demonstrating how digital advancements can streamline traditional banking practices. CD Valet leverages a marketplace platform that connects financial institutions with potential savers across the nation, allowing banks to promote competitive CD rates directly to high-intent consumers. Howard Stein, the Executive Vice President and Chief Operating Officer of ODNB, will share insights into this successful collaboration at the upcoming conference, intending to showcase how they have minimized costs while maximizing deposit influx.

During the first month of utilizing CD Valet’s platform, ODNB reported remarkable results, including over $10 million in new deposits, the opening of 40 new CDs, and the acquisition of more than 80 new customers due to the enhanced visibility provided by this digital marketplace. With a conversion rate of 10%, this partnership exemplifies an effective strategy for modern banking.

Driving Results through Digital Marketing

Traditionally, financial institutions faced challenges in breaking through the clutter of conventional marketing strategies. However, through its partnership with CD Valet, ODNB has managed to cut through the marketing noise by reaching directly to a broader audience of potential savers. By offering competitive rates, ODNB is now attracting high-value depositors from regions it previously could not access, including new branches in Florida.

Stein remarked on the advantages gained through this partnership, stating, "Partnering with CD Valet has allowed us to accelerate our deposit growth more quickly and effectively than traditional marketing channels alone, bringing in over $10 million in just one month." This illustrates the transformative impact of digital marketplaces in the banking sector, paving the way for community banks to not only compete but thrive in an increasingly competitive landscape.

A Unique Marketing Approach

Beyond just increasing deposits, the collaboration has introduced a 'halo effect' that has positively impacted other banking services. The increase in traffic to ODNB branches and call centers indicates that customers are not only interested in opening CDs but are also exploring other banking solutions offered by the bank. This synergy between online and offline channels suggests a promising model for future banking strategies.

Mary Grace Roske, Head of Marketing at CD Valet, emphasized the importance of this partnership in helping community institutions to meet today's banking challenges. She stated, "With CD demand surging and competition intensifying, we remain committed to helping financial institutions like ODNB stand out in the pack, especially when its rates stand above competition."

Future Outlook

Looking ahead, the partnership between Old Dominion National Bank and CD Valet represents a vital part of a significant shift in how financial institutions acquire deposits. With 80% of CDs expected to be up for renewal in 2025, the strategies employed through this collaboration will be critical in retaining existing customers and attracting new ones.

The upcoming presentation at the American Banker's Digital Banking Conference will cover not just the successes they have achieved, but the replicability of their strategies across various financial institutions. This session, titled "Driving Deposits in Digital Marketplace: It's Not Just for the Big Brands," aims to shed light on how smaller community banks can leverage digital tools to compete with larger financial entities effectively.

In conclusion, the innovative partnership between Old Dominion National Bank and CD Valet is setting a precedent for how community banks can thrive by embracing digital marketing techniques. This transformative approach is poised to reshape the banking landscape, highlighting the potential for local banks to leverage technology to foster growth and enhance customer relationships.