Welcome

To Potential Successors of
Branch Manager I
Training
Deposit mobilization & retention
Training

CBE, Learning & Development

Course Objective

At the end of the training the trainees will be able to:

• Internalize importance of deposit to CBE

• Apply sales techniques for effective deposit mobilization &

retention

• Monitor branch deposit through effective mechanisms

Contents

Part One: Overview of Deposit mobilization

• Deposit mobilization
• Sales techniques for deposit mobilization

Part two : Deposit retention

• Strategies for deposit retention
• Constituents of deposit retention
• Deposit monitoring
• Skills for deposit mobilization &retention
• Team for deposit mobilization &retention
 Part One
Overview of deposit mobilization
• Deposit mobilization is crucial for banks as it allows them to lend

money to borrowers, invest in assets, and generate revenue through

interest income.

• It refers to the process by which banks attract and gather funds from

individuals, businesses, and other entities in the form of deposits.

• By effectively mobilizing deposits, banks can maintain liquidity,

manage risks, and support economic growth by providing funds to

individuals and businesses.

So deposit to banks is like a tire of a car that highly determines

our business continuity and movement.

The amount of

deposited to our bank

will serve like a tire to

move or rotate.
Unless we mobilize and monitor deposit effectively we will loss our

market shares and in turn leads to bankrupt

Being big can not be

assurance for our business

continuity. So we have to

know and mobilize

expected LCY target to

retain our market share

and continue as giant bank

in the industry.
 COMMERCIAL BANK OF ETHIOPIA Wholesale performance by region

2023/24 YTD Incremental Deposit Daily Incremental Deposit

2023/24 Deposit Position
Performance Performance
REGION Particular
Actual Plan %age Acc. June 30, 2023
31-Oct-23 30-Oct-23
(Base Line)
Daily Variation
(1) (2) (1Vs 2)
Private & Individuals 10,468,110 89% 145,262,811 134,512,153
(282,548)
11,758,967 144,980,263
Public Enterprise & Agency (14,600,368) -412% 112,713,433 127,059,262
(254,539)
3,547,947 112,458,895
CENTRAL
Cooperatives & Associations 5,404,383 559% 10,647,183 5,283,567
40,767
REGION 965,966 10,687,950
Gov't (3,611,565) -47% 65,290,764 70,248,680
1,346,352
7,689,424 66,637,116
Total Wholesale -10% 333,914,192 337,103,663
850,032
(2,339,439) 23,962,303 334,764,223
Private & Individuals (2,900,505) -96% 34,170,477 37,199,192
128,211
3,032,793 34,298,687
Public Enterprise & Agency (17,253) -9% 2,572,323 2,553,315
(36,261)
194,060 2,536,062
NORTH EAST Cooperatives & Associations 803,892 247% 3,931,570 3,132,151
4,472
325,981 3,936,043
Gov't (4,035,968) -231% 35,296,998 38,645,727
(687,239)
1,747,645 34,609,760
Total Wholesale -116% 75,971,368 81,530,385
(590,816)
(6,149,833) 5,300,479 75,380,552
Private & Individuals 1,445,493 43% 29,206,910 28,803,648
1,042,231
3,329,928 30,249,141
Public Enterprise & Agency (444,020) -216% 2,587,418 3,283,493
252,055
205,934 2,839,473
SOUTH WEST Cooperatives & Associations (258,425) -177% 2,462,235 2,715,268
(5,392)
146,406 2,456,843
Gov't (3,828,032) -206% 17,419,966 20,576,888
(671,110)
1,854,804 16,748,856
Total Wholesale -56% 51,676,530 55,379,296
617,784
(3,084,982) 5,537,072 52,294,313
-33% 876,999
Regions Total (11,574,255) 34,799,854 462,439,088.2 461,562,089 474,013,343.2
- 1,458,667.07 64,935
H.O (865,517.18) - 1,393,732.16 2,324,184.25

941,934
 COMMERCIAL BANK OF ETHIOPIA
Retail Deposit by Region as on Oct 31,2023

Daily Incremental
2023/24 YTD Incremental Deposit
2023/24 Deposit Position Deposit
Performance
Performance
No.

Actual Plan %age Acc. June 30, 2023

Region 31-Oct-23 30-Oct-23 Daily Variation
(1) (2) (1Vs 2) (Base Line)

1 Central 8,183,488 43% 263,668,373 255,484,886 967,478

19,205,717 262,700,895

2 North East 4,426,848 9,478,541 47% 132,540,918 128,114,070 645,763

131,895,155
South West
3 (1,478,037) 9,520,650 -16% 101,502,504 102,980,541 867,520
region 100,634,984

Region Total 11,132,299 29% 497,711,796 486,579,497 2,480,762

38,204,908 495,231,034

H.O (0) - - 0 2 0 (2)

11,132,299 0 497,711,796 486,579,498 2,480,761
Grand total 38,204,908 495,231,036
Group Discussion

• How you see/evaluate/ our 1st

quarter performance?

• How can we settle our

backlog and achieve the
expected target?
To achieve this plan we have to apply
techniques ,skills, strategies and other best
ways.
Deposit Mobilization
Incremental in deposit can be achieved through the following
ways:
1. Sales force effectiveness- by making the employee
force effective
2. Deposit retention – applying deposit retention
mechanisms
In addition building effective team is very crucial to

monitoring and evaluating performance.

Sales force effectiveness
• It is the effectiveness of the employee force to achieve
expected financial and non financial targets
• It directly measured by effective lead generation which
positively impacts our bank resource mobilization.
• A sales force can be effective by using and applying sales
techniques
 Group Discussion

• What techniques you apply to

mobilize deposit in your branch
• How you evaluate your branch 1st
quarter performance?
• Please share your best experience
in deposit mobilization.
 Sales techniques

• Deposit can be mobilized from new customers and

existing customers by applying effective sales techniques
• Sales technique is a method used by sales teams to
effectively mobilize resources from customers
consistently.
• Some common sales techniques and approaches are the
following.
Sales techniques
1. Consultative selling:
• Instead of focusing solely on selling products, banks
should adopt a consultative approach by understanding
the customer's financial goals and needs. This involves
asking relevant questions, actively listening, and offering
personalized solutions that meet the customer's specific
needs.
Sales techniques…
2. Cross-selling:
• Banks can increase their sales by cross-selling additional
products or services to existing customers.
For example, when a customer opens a deposit account,
the bank can also offer debit cards and mobile banking
access for creating convenience to them.
Question : What you cross-sell in your division/branch?
3. Relationship-based selling:
• Building strong relationships with customers is
essential for successful sales. Banks should focus on
developing trust, providing excellent customer
service, and maintaining regular contact to identify
opportunities for additional product sales.

• Question : Please share your sales experience

through relationship based ?
•
4. Value proposition selling:
• Banks should clearly communicate the unique value and
benefits of their deposit products to customers. This
includes highlighting competitive interest rates, flexible
terms, convenient features, and any added perks or
rewards.
• Question : Please share your sales experience
through providing offerings?
5. Referral programs:
• Banks can encourage existing customers to refer their
friends and family members by offering incentives or
rewards. This can help in expanding the customer base
and generating new leads for deposit product sales.

Question : Please share your sales experience

through Referrals?
6. Upselling and upgrading:
• Banks can upsell or upgrade existing deposit accounts by
offering higher-tier options with additional benefits or
features.
• This can be done through targeted marketing campaigns
or personalized offers based on the customer's usage and
needs.
Question :- What are your upselling experiences on
that you mobilize deposits or foreign currencies from
customers ?
7. Education and financial literacy:
• Banks can educate customers about the importance of
saving and the benefits of deposit products through
workshops, seminars, or online resources. This helps in
creating awareness and generating interest in opening
deposit accounts.
8. Digital sales channels:
Banks should leverage digital platforms such as online
banking, mobile apps, and chat bots to enable
customers to open deposit accounts conveniently.
These channels should provide a seamless and user-
friendly experience to encourage online sales.
9. Follow-up and after-sales service:
• After a customer opens a deposit account, banks should
follow up to ensure customer satisfaction and address
any concerns or questions. This demonstrates proactive
customer service and builds trust for future sales
opportunities.
In addition to applying the above
techniques the bank has listed activities
to be done for e ff e c t i v e deposit
mobilization
A c t i v i t i e s t o d o n e f o r e ff e c t i v e
deposit mobilization
Conduct door-to-door marketing
Perform Referral marketing
Perform Cross-selling activities
Perform money tracking

Properly serve walk-in customers

Rectify zero-balance accounts

Reduce inactive accounts
Strengthen relationships with corporate customers
A c t i v i t i e s t o b e d o n e f o r e ff e c t i v e
deposit mobilization

Strengthen relationships with public institutions

Strengthen relationships with government institutions

Strengthen relationships with cooperatives and associations

Strengthen relationships with NGOs and Int’l organizations

Expand the number of micro-finance customers

Expand the number of SME

 Part Two
Deposit Retention
Deposit Retention
• It refers to the ability of the Bank to retain its customer
and deposit over specified period by maintaining
relationship and addressing their business & service
needs;
• Deposit retention is also the intent to make customers of
the Bank tend to return, continue to buy or in some other
way not defect to other banks;
 Deposit Retention …
• The underlying driving force for developing deposit retention
strategy or for customers opting to move to other banks or stop
working with CBE or reduce engagement with CBE is mainly our
failure to respond to market dynamic, customer need dynamic;
 Strategies for Deposit Retention

• Deposit retention strategies are proactive and reactive

actions devised by the Bank to understand &
promptly address customer pain points and/or gain
areas so as to retain deposit (increase deposit account
balances) and reduce customer likelihood to move
their transactions to competitors;
These are some of the deposit retention strategies
• Develop a comprehensive deposit retention strategy with clear
goals and objectives;
• Conduct regular market research and competitor analysis to stay
informed about changing customer expectations and industry
trends;
• Set realistic goals and establish a timeline for implementing the
deposit retention strategy;
• Assign clear responsibilities and ensure coordination across
different departments involved in retention efforts.
 Group Discussion

• How you retain deposit ,please

discuss on methods and
constituents of deposit retention?
• Do you have backlog in
performance at your branch?
What solutions you recommend to
have +ve performance?
 Constituents of deposit retention

a. Excellent Customer
Service:
• We have to make our
customers very happy with
our service.
 Constituents of deposit retention…

b. Convenience and
Accessibility:
• Enhance the overall digital
banking platforms that suite
to wholesale banking
customer.
Constituents of deposit retention…

c. Personalized Service and

Financial Advice:
• Train performers to provide
personalized guidance on financial
issues of customers.
• Maintain regular communication with
customers to monitor progress and
provide ongoing support
Constituents of deposit retention…

d. Regular Communication:
• Develop customer visit plan on a
regular basis.
• Send out emails, or other targeted
messages with relevant updates
concerning customers need.
• Personalize communications based
on customer preferences and
interests.
Constituents of deposit retention…

e. Relationship management:
• Foster regular communication
and engagement between
relationship managers and
depositors.
• Organize events or networking
opportunities to strengthen
relationships.
Constituents of deposit retention…

f. Develop Performance Tracking Method:

• Establish key performance indicators (KPIs) to measure the
effectiveness of deposit retention strategies.
• Define specific KPIs such as customer retention rate, average
deposit size, and cross-selling ratio.
• Monitor and evaluate KPIs regularly to identify performance gaps
and areas for improvement.
Deposit monitoring mechanisms
• Deposit monitoring refers to the process of tracking
and analyzing the various deposits made by customers.
• It is a crucial aspect of banking activity as it helps banks
maintain financial.
Deposit monitoring mechanisms
1. Customer engagement
2. Money tracking
3. Account analysis
4. Manage distressed customers
Deposit monitoring mechanisms
1. Customer engagement
• The sales force team should enhance customer
engagement at all time in order to protect possible
deposit diversion and attract new one
How we increase customer engagement?
a. Establish ongoing relationship with customers apart from
transactional relationship and increase customer loyalty
b. Deliver connected experiences to customers
How we increase customer engagement…
c. Create a connected feedback loop with customers
through
• Improving service quality
• Creating great customer experience
• Focusing on retention of deposit
2. Money tracking :it can be proactive based on
sufficient information about fund flows or passive money
tracking which is withdrawal management.
So that money tracking can be external or internal
The following activities act as a trigger
• New developments around the branch
• Changes in the regulatory or legal environments
• Market intelligence on competitors and businesses
Activities act as a trigger…
• Big deposit and withdrawal transaction
• Loan processing/disbursement to customer account
• Understanding fund flows from and to customer account
• Movement of inactive accounts
3. Account analysis
Account analysis should be done on existing customer
account performance using the following as an indicator
• Amount of deposit and average residual account balance
• Frequency of transaction on customer account
• Customer account status(focusing on inactive accounts)
• Transaction history (both debit and credit)
• Customer pain points(complaints/experience)
• The branch overall account performance
 Group Discussion

• What actions you do in monitoring

deposit?
• Do you faced distressed customer?
What was the signs, How you
handle to retain him/her working
with CBE?
4. Distress customer- customers experiencing difficulties or
dissatisfaction with a product or service offered by the bank.

So what we have to do in managing distress customer?

Distress Customer Identification
• Identifying customers in distress/depositors at
risk
• Develop contact mechanisms
• Develop contact scripts
• Training and empowerment of relationship managers
The distress customer indicators
• Changes in Average Deposit Balance,
• Withdrawal Frequency,
• Deposit turnover ,
• Communication Breakdown,
• Unresolved Customer Issues or Complaints,
• Delay in loan repayment.
 Group Discussion

• What skills needed for effective

resource mobilization ?
• As a successor to managerial position
please mention some competencies
expected from sales performers.
Skills of managers for effective deposit mobilization
&retention

Managers play a crucial role in the effective mobilization of

deposits. Here are some skills that managers should possess:

1. Sales and Marketing Skills:

• Managers should have strong sales and marketing skills to

develop and implement effective strategies for deposit
mobilization. This includes understanding customer needs,
identifying target markets, and creating compelling marketing
campaigns.
Skills of managers…

2. Relationship Management Skills:

• Building and maintaining strong relationships with customers is key

to deposit mobilization. Managers should have excellent
interpersonal and communication skills to establish trust,
understand customer requirements, and provide personalized
service.
Skills of managers…

3. Leadership Skills:

• Managers should possess strong leadership skills to effectively

lead their teams in achieving deposit mobilization goals. This
includes setting clear objectives, motivating team members,
providing guidance and support, and fostering a positive work
environment.
Skills of managers…

4. Adaptability:

• The banking industry is constantly evolving, and managers

need to be adaptable to changes in technology, regulations,
and customer preferences. They should be open to learning
new skills, embracing new technologies, and adapting their
strategies to stay competitive in the market.
Skills of managers…

5. Problem-Solving Skills:

• Managers should be able to identify and address challenges that

may arise during the deposit mobilization process. They should be
proactive in finding solutions, resolving customer issues, and
overcoming obstacles to ensure a smooth deposit mobilization
process.
Skills of managers…

6. Strategic Thinking:
• Managers need to think strategically and develop long-term plans
for resource mobilization. They should be able to identify
opportunities, anticipate market trends, and develop innovative
strategies to attract deposits and stay ahead of the competition.
• By possessing these skills, managers can effectively lead their
teams and implement strategies to mobilize deposits successfully.

How you evaluate yourself with the above skills?

Team for effective Deposit mobilization & retention

For effective resource mobilization performing activities in a team

plays a crucial role.
A Team is a group of people with a
commitment
• to one another
• to the team
• to a high level of achievement
• to a common goal, and
• to a common vision
 Group Discussion

• Do you have a team? What tasks

you perform in the team?
• How you evaluate your team
performance?
• Do you have weekly or daily
meeting for performance
evaluation?
Team members shared values
With team nothing is impossible
Team for effective Resource mobilization

Sales Team
• The sales team size shall be between &
including four and seven members.
• Branches with high sales volume and
large customer base, may establish
Sales force team by encompassing
members more than seven.
• Branches may form inbound and
outbound sales teams
Roles and responsibilities of sales team members at Branch

• Evaluate lead management (capture/receive and executing leads);

• Customer profile updating, data cleansing and product/customer
portfolio management;
• Plan, lead and execute relationship marketing and sales (customer
acquisition);
• Evaluate customer needs and identify new CVP for action or
escalation;
• Arrange meeting with customers and make calls if necessary;
• Review and report sales/deposit retention performance
• Identify customer concerns and complaints, draw solution or escalate
to directors, VPs;
Summary of the training
• Definition of deposit mobilization
• Deposit mobilization strategies
• Techniques of deposit mobilization(sales techniques)
• Deposit retention
• Constituents of deposit retention
• Deposit monitoring mechanisms
• Skills for effective deposit mobilization
• Effective team for deposit mobilization
 Action Plan
Area for Problem Proposed Success Owner Timeline for
Improvement Definition Solutions Measures Completion
(Finding out
Root Causes)
Any Question, Comments and
Suggestions
Thank You!