You can’t just plant a seed in the ground and expect to have a plant the next day. There are several factors you have to consider in order for it to develop, from planting it in the proper soil and getting the right amount of light, to watering it and fertilizing it correctly. Similarly, growing your financial institution’s loans is more than just a goal. It takes a significant amount of care and consideration to ensure that loan growth can be supported, including having the funds to do so.
Core deposits play an important role in providing funding for financial institutions’ loan growth. Because of this, relationship pricing can be an essential approach to acquiring funds for loan growth.