Background: This traditional retail bank, which offered products on an unbundled basis, had experienced a decline
in its customer base as consumers migrated to more automated banks such as Citibank and Chase. It did not have the capital budget to match its
larger competitors on technology investment. At the same time, savings deposit products were going to be further deregulated and the sales culture
across its branch system was weak.
Solution: The first "relationship banking" product was developed, rewarding customers for purchasing multiple products.
It included both deposits and loans - home mortgages, home equity and credit cards - and introduced into the market a deregulated "Super Savings"
account.
Result: The introduction of new products and creation of a robust retail sales force in its 200+ branches changed
the direction of consumer banking in the nine-county New York metropolitan area. This improved the bank's market position from fourth to second,
growing deposits from $8.5 billion to over $12 billion within 12 months.
