Industry Information

Nowadays, many banks face the pressure of deposit verification, and to fulfill their deposit mission, many banks are exploring various ways to attract deposits.

Besides personal deposits, corporate clients are also key marketing targets for many banks, especially payroll drop-offs, which are a hot competition among major banks.

Why are banks so active in competing?Salary payments on behalf of othersWhat are the advantages of payroll distribution for banks?

In fact, payroll distribution is extremely important for banks and is a business that benefits both enterprises and individuals.

First, after a company handles payroll distribution at a certain bank, a lot of funds accumulate.

If a company chooses a bank for payroll distribution, the cooperation between the company and the bank is generally close, and the company's corporate transactions may also be handled through this bank.

Most of the time, corporate funds are in demand deposits, and for banks, demand deposits are the lowest cost.

This means that once a company chooses a bank for salary distribution, it can bring in a large amount of demand deposits to that bank. This not only helps the bank complete its deposit verification but also brings considerable returns.

Of course, besides deposits, the bank may also have loan dealings with the company.

By paying salaries on behalf of companies, banks can intuitively understand the company's strength, cash flow, assets, and so on, making loans more secure.

Second, add the number of users to the bank.

Competition among banks is fierce now, and all major banks have mission checks for new users, such as how many new users each year, and even have new app users.

By collaborating with the company and obtaining the company's payroll payment services, employees of that company must process their bank cards at that bank.

Currently, most people source their funds online, and many people will consciously register for the bank's mobile app. This way, not only do users join, but app registrations also increase.

Even if these new users leave their original company in the future, their bank accounts are unlikely to be canceled—this is all potential wealth for banks.

Third, employees' compensation is also deposited in the bank.

In reality, after companies pay their salaries, many employees' money is not immediately withdrawn from the bank; many still keep their money in current or fixed-term deposits in bank cards.

If a company has many employees, say several thousand people, and monthly salaries alone reach tens of millions, and a large portion of these tens of millions is deposited in banks through demand deposits, then the bank is no small sum.

Fourth, banks can tap into the potential value of a broad range of employees.

Once the bank receives the company's salary payment on behalf of the company, the company's employees become the bank's users, and the bank knows these users' basic information and income status inside out.

Once users are gathered, banks can launch targeted marketing activities, recommending credit cards, wealth management products, insurance products, and so on—these are all sources of income for banks.

Although not everyone among employees will use these bank services, there will always be some who are more or less persuaded by the bank. This kind of precise marketing is more efficient and valuable than spending a lot of money on advertising or trying to attract unfamiliar customers.

Because payroll agency distribution has many advantages, banks are so active in marketing to major companies, hoping to handle payroll distribution for them, and some banks even offer free services to these companies.