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Are Teaser Offers Worth the Trouble in Banking? - NGDATA

Written by Jenn Day | Feb 29, 2024 5:24:20 PM

Read the original article from Financial Brand here.

Here is a brief summary of the article:

  • Teaser offers are a popular way for banks to attract new customers and deposits.
  • These offers often come with higher interest rates or cash incentives for opening a new account.
  • However, there have been concerns about the fairness and consistency of these offers, as well as confusion among customers about the terms and conditions.
  • To ensure the success of teaser offers, bank executives should focus on four strategic questions: fairness, ease of execution, value to customers and the bank, and effectiveness at attracting deposits.
  • Teaser offers can be valuable to customers and the bank when they provide something extra and help change customer behavior.
  • To avoid negative perceptions, banks should ensure that their offers are clear, consistent, and easy to understand for both customers and frontline staff.