Show them the money

One of our larger SEGs has a relationship with two banks and us for "banking at work" programs. Recently, the two banks have been trying to one up each other on the offer to get new customers. The first bank started with $50, the second came back with $75 and now the first bank is back with $100. It only requires opening a checking account and starting direct deposit and there is no minimum opening balance. They are have representative on site just like we do. I am afraid to think of what the next offer will be.

How are we reacting? First, we are not trying to match the cash incentive. We are taking a relationship based approach and give away a variety of incentives as existing members and new members take out new services. Secondly, we are trying to offer unique products and show value. I have to say though, these offers will start to impact our ability to attract new members. Our existing members love us. (That is how we know the banks are coming out, we get emails from our member letting us know.) But at what price will our members be tempted and at what level will we have to react.

Buying market share is not uncommon and we do practice that method to an extent but at what point will we have to change our game to overcome this? The incentive has escalated in just 3 months. It shows how relevant the checking account is to all financial institutions and how willing they are to "show them the money".