Banks Realize Dramatic Gains in Deposits Utilizing SynapseEBM Solution.

CHARLOTTE, N.C. -- Banks are realizing dramatic gains in deposit growth using SynapseEBM, according to research conducted by Synapse Technology. In analyzing data from three of its customers, Synapse found that deposit growth averaged 3.9%. This figure represents new and retained deposit dollars above any other deposit growth, validated closely through analysis of test and control group behaviors. For every $1B in deposits, clients in the analysis group saw average annual deposit lift of $27.6M and average net interest margin contribution of $396,800.

"For all but the largest banks, net interest margins and fees on deposit products account for 90% of total income," said Tom Richards, Principal of The Crossroad Group, a consultancy dedicated to fulfilling the promise of CRM for financial services firms. "So despite the emphasis on new services as sources of income, retaining deposits is still the primary focus for managing margins and growing profitability. Securing these deposits is behind the industry's current emphasis on cross-selling. The hope is that the statistical relationship between services-per-household and retention will reduce deposit churn, but somehow the averages continue to resist the industry's efforts."

Richards continues, "The problem is that while you're busy selling, you may not be listening carefully. Customers may not tell you there's a problem, but their behaviors will let you know. That's what's so important about detection technologies like those from Synapse Technology."

Synapse EBM uses long-term transaction behavior to identify and provide retention and cross-sell opportunities. The system leverages the Synapse Transaction Behavior Marketing methodology to interpret and compare current behavior to that specific customer's historical behavior. By using a series of formal statistical methods, the daily customer specific behavior analysis recognizes significant behavioral changes and instantly identifies new sales and service opportunities. Based on this information, financial institutions can immediately leverage channels such as call center, e-mail, direct mail, relationship banker, and other customer contact points to take advantage of these opportunities.

"We are pleased with the results that our customers are achieving using our industry-leading SynapseEBM solution," said Mike Berry, SVP Financial Services, Synapse Technology. "Customer retention and deposit growth are becoming increasingly important to financial institutions and we intend to continue to enhance our product suite to help banks increase profitability within their customer bases."

About Synapse Technology, Inc. in Financial Services

Synapse Technology, founded in 1996, is a leading provider of Event Based Marketing products and services to the financial services industry. Its flagship product, Synapse Event Based Marketing (SynapseEBM) is the only event based marketing solution that combines the power and accuracy of formal longitudinal statistical modeling, account triggers and campaign management capabilities for alert generation. In addition, SynapseEBM provides a unique and dynamic test and control measurement process. The product is in production with over 7,500 users in 3,000 bank branches throughout the United States. Headquartered in Charlotte, North Carolina the company has over 60 employees and is privately held. Synapse processes over 50 billion transactions per month for clients across financial services, healthcare, AgriBusiness (retail), and automotive industries. For additional information, please visit www.synapsetechnology.com.