The quiet chamber in Orfield Labs in Minneapolis is one of the quietest rooms in the world, registering at -24 decibels. It’s known as an anechoic chamber, where 99.99% of sounds are absorbed by its 3.3-ft-thick fiberglass walls, surrounded by layers of insulated steel and concrete. While spending time alone in the room can be meditative for some and disorienting for others, it serves a great purpose for product developers who are trying to make things like appliances, electronics, and even vehicles quieter for consumers. For financial institutions, though, quiet isn’t as beneficial, especially when it comes to their customers. Every financial institution has a certain percentage of silent, inactive accounts that sit on its books. They don’t cause overdrafts, they don’t trigger fraud alerts, and they don’t call customer service. Yet, that’s exactly the problem. Dormant accounts are often overlooked because they don’t demand attention. However, their collective cost can quietly eat into profitability.The Real Cost of InactivityA dormant account may seem harmless, but it still generates operational overhead. From core processing fees and statement delivery to escheatment tracking, each inactive account carries a small but persistent expense. Multiply that across thousands of customers, and the hidden cost becomes noticeable.Many financial institutions underestimate how non-revenue accounts affect overall performance. Even a modest reduction in dormancy can improve efficiency ratios and lift return on assets (ROA). In other words, inactivity is not neutral — it’s negative.Beyond cost, dormancy can skew metrics. When these accounts are counted in relationship totals or balance averages, they create a misleading picture of engagement and profitability. A bank may appear to have strong customer numbers but, in reality, can be carrying a large base of unproductive accounts.Why Accounts Go DormantThe causes of account dormancy vary. For some customers, dormancy follows a major life event — a relocation, a death in the family, or a change in employment. For others, it’s a symptom of limited engagement. The digital shift has also played a role. As customers adopt mobile wallets and online-only products, community financial institutions (CFIs) often lose transaction volume to nonbank competitors. If the institution doesn’t remain visible or convenient, customers gradually stop using those accounts altogether.Turning Dormancy into OpportunityReactivating dormant relationships starts with data. A simple first step is segmenting inactive accounts by their broader relationship status — for instance, customers who still have an active CD or loan elsewhere at the institution. These customers have already demonstrated trust; they just need a reason to re-engage.Automation can also help. Targeted outreach, such as personalized emails reminding customers of unused accounts or offering incentives to resume activity, has proven effective. The key is to align reactivation campaigns with relevance — offering digital banking access, mobile deposits, or small loyalty rewards can reignite usage without eroding margin.Some CFIs have gone further, leveraging analytics to predict which dormant accounts are most likely to respond. By scoring accounts on age, balance, and relationship depth, they can focus staff effort where it matters most.
Strengthening Relationships Before They Go SilentPrevention remains the best strategy. Encouraging customers to adopt multiple products, enroll in eStatements, or set up direct deposits reduces the risk of inactivity in the first place. Continuous engagement — whether through financial wellness emails, online education, or occasional personal outreach — reinforces the relationship beyond rate-driven interactions.Finally, profitability insights can help CFIs decide where to focus. Not every account is worth reviving. Using relationship-level profitability tools such as Profitability FIT™, institutions can evaluate the profitability of the full customer relationship and determine where reactivation would truly add value — ensuring resources are spent where they’ll drive meaningful returns.Dormant accounts may be silent, but their impact isn’t. With the right data, engagement strategy, and focus, CFIs can turn forgotten relationships into active, profitable ones — and make sure inactivity doesn’t go unnoticed again.
Strengthening Relationships Before They Go SilentPrevention remains the best strategy. Encouraging customers to adopt multiple products, enroll in eStatements, or set up direct deposits reduces the risk of inactivity in the first place. Continuous engagement — whether through financial wellness emails, online education, or occasional personal outreach — reinforces the relationship beyond rate-driven interactions.Finally, profitability insights can help CFIs decide where to focus. Not every account is worth reviving. Using relationship-level profitability tools such as Profitability FIT™, institutions can evaluate the profitability of the full customer relationship and determine where reactivation would truly add value — ensuring resources are spent where they’ll drive meaningful returns.Dormant accounts may be silent, but their impact isn’t. With the right data, engagement strategy, and focus, CFIs can turn forgotten relationships into active, profitable ones — and make sure inactivity doesn’t go unnoticed again.
