Evolution, Inc. since 1979
Insurance Premium Finance can help banks increase deposits.
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How Insurance Premium Finance Can Help Increase Bank Deposits:
1. Escrow and Reserve Accounts:
- When banks offer premium finance loans, they sometimes require borrowers to set up reserve or escrow accounts to hold funds for premium payments.
- These accounts are deposits from the customer and can increase the bank's overall deposit base.
2. Cross-Selling Opportunities:
- Clients using IPF may also open operating accounts, savings, or CDs with the bank.
- This cross-selling effect can increase core deposits if well-structured.
3. Broker/Agent Relationships:
- Banks working with insurance brokers may attract referral business, leading to new deposit clients (businesses, high-net-worth individuals).
4. Trust and Relationship Banking:
- IPF can be part of a broader wealth or business management strategy, leading clients to consolidate assets—including deposits—at that bank.