Grow Your Bank

Economic Challenge and Great Opportunity!

noreply@blogger.com (joe sullivan) — Thu, 17 Jul 2008 20:47:00 +0000

An Amazing Dichotomy

Recently we saw evidence of two starkly different approaches to business in our changing economy, how it creates opportunities for some businesses and can negatively affect other businesses. Almost at the same time, you saw images of people standing in line to withdraw their deposits at Indy Mac Bank, while also seeing long lines snaked around just about every Apple store in the country, in anticipation of the release of the latest and greatest iPhone.

There was, and still is a huge emotional component in both of these situations. I believe that emotional connection is the key ingredient in keeping customers happy and wanting to do business with you. Apple knows this. Of course, they are positioned as the provider of technology which is easy to use and fun. But, they have also created almost what I would call a “movement” where customers simply “must have” the latest and greatest version of their products. So while we could say that Apple targets only upscale techies, we would be wrong, because they appear to target people who respond to easy and fun, words which speak to emotion.

Indy Mac Bank, on the other hand, also has some emotional content occurring with its customers at the present time. People are concerned about their money, and, more importantly, the emotions that are tied to their deposit account. Emotions surrounding retirement security, resources to take that dream vacation or having the piece of mind of financial security. All of these are emotional situations and bankers have proven expertise in addressing them with customers. Now is not the time to be shy.

So what does all of this mean from my perspective? Bankers should be using this time of perceived uncertainty to make a deeper connection with their customers through education, discussion and outreach. For bankers, using their knowledge and expertise to help quell customer’s fears right now may be the very best thing they can do to create an even more loyal customer base. Fear is a powerful emotion, one that is running far too rampant right now, and bankers have the opportunity to use their expertise to help customers face these fears.

The time is now.

Are You Relevant?

noreply@blogger.com (joe sullivan) — Mon, 14 Jul 2008 20:11:00 +0000

Last Friday I had the pleasure of speaking at the 14^th Annual Senior Management Summit sponsored by the Texas Bankers Association in Austin and that is the very question I posed to my audience.

I spoke on what I believe to be the single most important topic facing the financial services industry: Relevance. I must say that I am truly jazzed up by this topic and at the same time a bit concerned that more bankers nationwide don’t see it as important, or even believe that it will affect them. That is just plain scary.

This is not just about the banking industry. Any business that serves the public, directly or indirectly, must see that change is the only constant; that we cannot rely on the traditional play book of the past for solutions in a changing world and that now is definitely not the time to be fearful.

Richard Tedlow, in his article published in this summer’s Harvard Business Review entitled “Leaders in Denial” states that you may be riding the express train to oblivion if you are not asking yourself if you are on the right path. I could not agree more!

At Market Insights we are all about helping clients to remain relevant and to grow their businesses. We are constantly seeking creative, innovative businesses and leaders, including financial institutions that are doing great things. I would like to hear your thoughts on Relevance, what you are doing at your business to move ahead, and any other feedback or ideas you care to share.

Love / Hate Revisited

noreply@blogger.com (Brady Walen) — Tue, 08 Jul 2008 15:21:00 +0000

Over the last year, we’ve talked a lot about love, hate and indifference relative to how consumers feel about the companies with which they do business – and specifically how consumers feel about their financial institutions, and how that impacts brand loyalty.

With so many institutions trying to be “all things to all people”, the industry has become commoditized; and in many cases, it’s become difficult for consumers to easily tell the differences between one institution and the next. As a result, many consumers are motivated by price or convenience factors, and lack the kind of strong emotional connection with their financial institutions that we see with other companies outside the industry like an Apple, Starbucks or Whole Foods for example.

As many financial institutions continue to take the safe approach marketing to the mass-middle-ground - or the indifferent, opportunities present themselves for others who are willing to take steps to truly differentiate their institution from the competition. But this requires a clearly defined target market and taking steps that will align your institution with their needs, values and preferences – you want to make it easy for your target to choose you over the competition, to feel that connection with your institution, and love doing business with your institution as a result. On the flip side of this, and the reason why many institutions don’t take these steps, is that you have to be willing to allow other consumers - those that aren't part of your target, to make the choice not to do business with you. In most cases, this means thinking differently about your pool of prospective customers - focusing your efforts on those that will love what you're doing while allowing others to hate what you're doing.

During the past week, I’ve seen two examples in television campaigns of companies embracing this love / hate concept: Crocs (the ugly slip-on plastic-looking shoes…as you can tell, I’m on the hate side of the spectrum) and Scion (the Toyota spin-off for those looking to express their individuality through their cars).

First, during the AVP Pro Volleyball Tournament sponsored by Crocs, I was introduced to the company’s “love ‘em or hate ‘em” campaign. Crocs shoes are very popular in my neighborhood, as I’m sure they are across the country; but the company’s marketing team understands that there are plenty of people like me who don’t like the shoes – and, it's embracing and promoting the love / hate feelings with a new crocslovehate.com website. The site is working to build buzz around the fact that people either love or hate the shoes, and draw people from the indifferent middle-ground to one side or the other.

Second, I was intrigued by commercial with a similar concept for Scion. Once again, Scion understands that some people love its cars and others hate them – and this is by design. The commercial includes the obvious message “love it or loathe it” to drive home the point.

Find more videos like this on AdGabber

What does the love / hate concept look like with banks and credit unions? Sure, we’ve seen our share of hate websites, blog posts and other commentary about bad experiences with financial institutions, but we don’t hear the kind of rants and raves from both sides of the spectrum like we do with these and other examples outside of the industry.

While we hear executives and marketers talk about their ideal customers and target market, we never hear them talk about the customers or members they don't want - or those that they're willing to lose in an effort to build a stronger connection with their target segments. So, if you know of an institution making strategic choices with “love us or hate us” attitude, I’d like to hear about it.

Perspective

noreply@blogger.com (Jim Perry) — Mon, 07 Jul 2008 12:58:00 +0000

On Thursday afternoon, just about the time when many of us were wrapping up business to break away for a well-deserved holiday weekend, Newsweek’s Howard Fineman was posting a web exclusive story from the Aspen Institute Ideas Festival in Aspen, Colorado. In case you missed this article entitled “In Search of Optimism”, it recounted comments by JPMorgan Chase CEO Jamie Dimon to PBS’s Charlie Rose:

"The economy is virtually unfathomable," he began. "I hope we have hit bottom, but I can't really say." On the upside, he said, we all need to maintain some historical perspective. In 1987, he reminded the crowd, the stock market had dropped 25 percent in one day. The current depressing run was months in the making. Nor is the situation like 1982, when we faced a recession driven by sky-high interest rates. By historical standards, unemployment is relatively low at 5.5 percent. But as a country we face rising economies elsewhere around the world—trading partners increasingly turned competitors—energy costs and above all a lack of political will to use government well.

These cautionary comments from a man who many call “America’s top banker”, should remind us about the importance of perspective in times of great uncertainty. While most community bankers and credit union executives don’t have the advantage of Mr. Dimon’s unique situation, they can certainly benefit from his point of view.

Too often, current events and market news prompt us to make hasty choices. But perspective and context can counteract fear and help guide choices that will shape the future of the financial services industry.

How will Starbucks closures impact shared-space bank branches?

noreply@blogger.com (Brady Walen) — Wed, 02 Jul 2008 21:39:00 +0000

It seemed like a no-brainer for some institutions’ expansion strategies: build branches near or adjacent to a Starbucks store; or better yet, take full advantage of the foot traffic generated by the coffee chain and share a retail space. Given the rapid growth and much-discussed success of Starbucks in recent years, it certainly seemed like a viable strategy.

But as news comes today of Starbucks’ plans to close more than 600 stores over the next year, how will financial institutions sharing space with Starbucks stores be impacted?

While most of the planned Starbucks closures will be those stores opened since 2005, it doesn't sound like the institutions referenced in this Wall Street Journal article from 2005 will be impacted. But what about those institutions that may have followed their lead and teamed up with Starbucks with a shared-space since then? Or, what about those that were influenced in some respect by a Starbucks location when selecting a site for a new branch during the past few years? We've talked to quite a few institutions, especially those with branches near college campuses, who have aggressively pursued such partnerships with Starbucks.

It's easy to see how the shifts in traffic patterns can certainly benefit many businesses, especially those that follow retail magnets like Starbucks or Wal-Mart, but what happens when they close their doors? I suppose we’ll find out which institutions, if any, will be impacted when Starbucks makes its announcement to its employees later this month about which locations will be closed.

Harris Bank Touts Stability in its Musical Chairs Campaign

noreply@blogger.com (Brady Walen) — Tue, 01 Jul 2008 20:42:00 +0000

I suppose it was only a matter of time before the musical greeting cards concept was adopted by marketers for a direct mail piece; we received one yesterday at the office from Harris Bank.

The mailer leads with the message: “business banking in Chicago has become a game of musical chairs”, and plays “pop goes the weasel” when opened. While the music was unexpected and grabbed my attention, I had to read the content a couple times before I fully understood the purpose of the mailer.

Inside, the piece talks about how “While the rest of the Chicago banking community plays musical chairs – old familiar names disappearing, bankers moving on- Harris remains rock solid. We have had the same name for more than 125 years. We’re here to stay.”

Granted, we did just see the major acquisition of LaSalle Bank in Chicago by Bank of America - which is certainly an example of an “old familiar name” disappearing, but is that enough to make customer think about switching institutions? Bank of America did an excellent job handling the transition for LaSalle Bank customers in the months leading up to the acquisition – sending personalized letters, providing answers to FAQ’s, setting expectations, and welcoming them as B of A customers. These efforts undoubtedly put many of LaSalle’s customers at ease about the acquisition – and it’s these kinds of efforts that we’re seeing the major national and regional players deploying during acquisitions in markets across the country.

And if having the same name for 125 years isn’t compelling enough to switch to Harris, the mailer also carries a $250 promotional offer for opening a new business account; but even then, I doubt it’s enough to move a significant number of accounts.

With a lot of uncertainties around the success rates of direct mail initiatives by financial institutions, I have to question how much Harris paid for each of these pieces – and what it expects as far as a return. And with the amount of money the campaign must have cost for production and postage, I’d like to think that the marketing team would have taken the time to ensure that the pieces were addressed to a specific person at our office - but the piece was simply addressed to “Market Insights”.

Over the last couple years, we’ve seen quite a few institutions promote stability and longevity in markets where acquisitions and mergers are happening – and in most cases, the expected customer run-off from the acquired institutions just doesn’t follow. I expect that the same will hold true in the Chicago market, especially with the well-managed transition of LaSalle Bank to Bank of America. The Harris piece just falls short.

And I thought ATMs were an expectation

noreply@blogger.com (Brady Walen) — Mon, 30 Jun 2008 20:49:00 +0000

So I went to the bank today and found that the ATMs had been upgraded - they now have check imaging capabilities. And while I’ve heard about the technology that allows checks to be deposited at an ATM without an envelope, I hadn’t yet used one until this afternoon. It’s a pretty slick process: tell the ATM that you want to make a deposit and insert the check directly into the machine. An image of the check appeared instantly on the screen; the computer displayed the deposit amount and asked me if it was correct – I was surprised that the computer read the hand-written amount on the check. After approval, you can select to have a receipt printed with or without the check image, or chose no receipt at all. All of this in a matter of a few quick prompts on the screen.

This was in sharp contrast to an experience we had last week with a community bank in a small town in North Carolina – where a teller told us that the bank was “old fashioned”. Old fashioned is an understatement. Here’s an institution with a large geographic footprint, promoting free checking at its branches, and it doesn’t offer an ATM or ATM card. And, after looking online after our visit, the bank doesn’t have a website either.

While I realize that today’s financial institutions don’t necessarily need to have the same products, services or delivery channels as their competitors, I had considered ATMs to be an expectation rather than an option – especially with institutions like mine upgrading machines that are already fully functional and feature more bells and whistles than most ATMs out there.

So, how long can an "old fashioned" bank continue to conduct business successfully (without ATMs, a website, or online banking) in an environment where consumer expectations are rapidly changing?

Is your institution committing a “deadly marketing sin”?

noreply@blogger.com (Brady Walen) — Wed, 11 Jun 2008 14:51:00 +0000

The latest issue of BAI’s Banking Strategies magazine features the article Six Deadly Marketing Sins – Financial marketers need to get out of their rut to break through the market’s clutter.

Many of today’s marketers definitely do need to get out of their rut; they need to break through the clutter. And while I agree with the six sins outlined in the article, it doesn’t discuss what I would consider to be an underlying factor of each: the overall lack of meaningful and strategic points of differentiation.

When you have clarity about what distinguishes your institution from the competition, and those points are both meaningful to your target and are leveragable against your competition, you should be able to avoid each of these six sins. As an example, sin #2 is “an avoidance of marketing messages with some personality and attitude.” True points of differentiation convey the unique personality and attitude of your institution. At the end of the day, your marketing messages should all link back directly to your points of differentiation. This linkage allows people to easily see the value added by your institution; and should make it easy for your target market to chose your institution over the competition.

The other sin from the article that I really like is #6: “The illogical view that one print ad, one e-mail or one piece of direct mail is capable of gaining quick attention. The fact is, you need repeated, high-impact communication to build awareness.” While we know that some ads are capable of capturing quick attention – a single print ad isn’t likely to generate the results that many institutions hope for; this is especially true when we’re talking about sustainable results. When we talk about “meaningful” points of differentiation, we’re talking about the kind of points that can be used to develop “high-impact” communications – the kind that build awareness and lets people know exactly what your institution stands for. Another point to be made about this sin is the fact that “repeated” communication shouldn’t translate into simply placing more ads or sending more emails and direct mailers. Rather, your points of differentiation should be reflected in everything from your marketing collateral to your customer experience; from your products & services to your community involvement - giving your customers and the community repeated exposure to your message through multiple venues.

Think about how your institution is different from the competition. Are those points meaningful to your target market? Could they be leveraged as an advantage over your competition?

Name Your Own Account

noreply@blogger.com (Brady Walen) — Wed, 21 May 2008 14:17:00 +0000

In an effort to give its customers a "fun and easy" way to save money, Americana Community Bank (Sleepy Eye, MN) announced the introduction of its Name Your Own Account this week. The account encourages customers to set a specific purchase goal - like a new TV, boat or vacation - and use the account to save specifically for that purchase.

After opening the account, the Bank also plans to send account holders email updates as their savings grow - and they get closer to having enough money to make their big purchase.

The account is the latest in efforts we've seen relative to institutions allowing customers to customize an account - or features of that account. And, while this will certainly allow ACB to engage its customers, I'd like to see how the value of the account will be communicated to both customers and non-customers.

I was disappointed in not being able to find any information about the account on the Bank's website - I read about the account in a press release, but found no additional information online. Nonetheless, I wonder what kind of long-term success the name your own account will have for ACB. Will customers begin saving again for something else (and re-name their account) after their initial purchase is made?

Unlike initiatives like ING's Your Number - where long-term retirement savings goals are the focus, Americana Community Bank's account focuses on relatively short-term goals. And while these short-term goals are certainly important for the customer, especially given the focus on saving the money before purchasing - rather than using credit, the account structure puts those deposits at risk once the savings goals are reached. What will the Bank's follow-up efforts look like with those customers to continue saving?

The account looks to be part of a series of changes at Americana Community Bank - as noted on the Bank's website, it looks like a new site, new products and new look are in the works.

What kind of financial guidance are you offering Gen Y?

noreply@blogger.com (Brady Walen) — Tue, 20 May 2008 22:00:00 +0000

Yesterday’s Marketing Daily featured the article “Gen Y is Going to Need Financial Guidance More Than Most.” Citing outstanding student loans, credit card debt and lack of savings, it’s easy to see why Generation Y may need some guidance to navigate these challenges.

So, what kind of financial guidance are you offering Gen Y?

The article makes a good point about life-stage goals – with Susan Menke, senior financial services analyst at Mintel giving the example that “Many Gen Y consumers have a picture of where they’d like to be financially by the time they’re 35. Often, that picture includes owning a house, having children and being free of student loan debt.” She goes on to say “They key is to build your model so that you’re targeting both short-term profit and log-term profit potential.”

Looking at Generation Y’s current life-stage (many are high school or college students, or recent graduates starting careers), and the challenges many are currently facing – like the student loans, credit card debt and lack of savings, as mentioned in the article – gives us some direction as to what kind of financial guidance Gen Y needs now, in the short-term. Gen Y needs a plan to pay off their debts; and many need a reason to start saving their money. This is where life-stage goals like buying a car or home, or saving for a vacation or retirement can become part of the financial guidance your institution offers.

And, depending on your market, offering financial guidance to Gen Y may also require that you think beyond the traditional in-branch meeting with a personal banker. As an example, how will your institution offer financial guidance to Gen Y through your website or other venues?

If you aren’t currently offering any overt financial guidance, education or planning tools for Generation Y, it may be time to start thinking about doing so. With Gen Y expected to become more lucrative in the coming years, the relationships established with them now – especially during important life-stage events, like buying a first home, should be looked at relative to both short-term and long-term opportunities.

The Impact of Mobile Banking on Your Brand

noreply@blogger.com (Jim Perry) — Tue, 13 May 2008 11:55:00 +0000

Jeff Stephens at Creative Brand Communications recently posted a question on Banktastic about the impact of mobile banking on branding for banks and credit unions. With projections of 100 million US consumers using mobile banking by 2012 (cited by Javelin Research in a Business Week article last month) it is no wonder that the industry is scrambling to take advantage of the latest technology. Today mobile banking is an emerging technology…tomorrow, can we say “me-too”?! What do you think? Will the offer of (or failure to offer) mobile banking impact your brand in the mind's of your customer?

Online Banking On Its Way Out?

noreply@blogger.com (Brady Walen) — Tue, 15 Apr 2008 03:09:00 +0000

In a conversation with a banker last week, I asked about his intentions to add online account opening capabilities for his customers. And, this sparked an interesting conversation about the limitations placed on his institution's online banking platform by its core processor (the company also hosts his online banking service).

You see, this banker had been considering adding this feature to his online banking for some time – and he really saw the value in making online account opening available to his customers. But he told us he couldn't add it because his core processing company had no plans to offer online account opening as part of its services to its bank customers. I understand that it takes time to develop these technologies, but it was the rationale behind this specific company’s choice not to offer online account opening capabilities to its bank clients that was pretty shocking.

They told the bank's management that online banking was on its way out. That’s right, they told them that the regulators would certainly kill online banking in the near future, and as a result, there was no reason to make the investment in developing the technology which would allow online account opening.

Online banking on its way out? Seriously? I don't think so.

Consumer behaviors are changing rapidly - especially relative to the Internet. And, today's successful institutions are those that embrace the changes and partner with outside companies who do so as well.

BarCampBank San Francisco

noreply@blogger.com (Mark Brandt) — Thu, 03 Apr 2008 22:01:00 +0000

On Saturday, I had the opportunity to attend the BarCampBank San Francisco conference. I had never attended a BarCampBank conference, so I was excited – and didn’t know what to expect. I must say, I was not disappointed. The conversations and group discussions were very intriguing, and the relaxed atmosphere of the whole event had everyone participating without hesitation. It was a lot of fun to join such a diverse group of people to talk trends that are taking place right now in the financial service industry.

Now when I say the group was diverse, here is what I mean. The list of attendees ran the gamut from credit union CEO’s, to college students (a total of around 60 people overall). There were people representing startup ventures, corporate marketing departments, consulting firms, and there were also some programmers in attendance. This is why there is a buzz around these BarCamp events, I think. People contribute to discussions and bring a very wide range of background and perspectives with them. I learned as much in one day (if not more) at this conference than in attending an entire weekend at a traditional conference.

If you don’t know the scoop on BarCamps, here it is right from the source:”BarCamp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos and interaction from participants.”

The beauty is that anyone can organize a BarCamp, and as long as some interest is generated and there are people who want to attend. There are no rules and no pre-decided outline of content - the topics of discussion are decided upon by the attendees the day of the conference.

Anyway, enough about what they are. The BarCampBank San Francisco was very successful overall, and we should all definitely thank Matt Iverson for organizing the event (and all others that helped make it success). There is already talk about BarCampBankSF2 happening in another six months or so, and is generating discussion by attendees.

One of the biggest points made during the day was made during various discussions - if you are going to create a successful online service for customers in today’s Web 2.0 world, it must have three components: community, trust/transparency and stickiness. In today’s generation of internet users, these are the things they are looking for in any site or service they use online.

This is important for banks and credit unions because it translates into knowing what your customers are looking for in service offerings. An institution can’t just throw a website together for the sake of having a website; it must connect with, and be meaningful to the user. An example that came about during the conference centered on providing financial advice or financial planning tools online, and why there are so many that aren’t successful. The reasons included the fact that people don’t just want a tool to spit numbers at them, they want to feel connected and have a more meaningful overall experience. They want a community of users to interact with, they want real world advice about what the tool is telling them, and they want feedback from the community about whether that advice is good or not.

A lot of what was discussed at BarCampBank San Francisco dealt with technology and trends that are happening in the financial world right now. While not all of it was presented as having a direct relationship with banks and credit unions, it is certainly reshaping the industry in some way. If you want to learn more about all of the various topics discussed at this BarCampBankSF you can visit the wiki site and check out discussion notes from participants. Also, here are some photos from the event taken by participants and posted on the flickr.

If you haven’t had a chance to participate in a BarCampBank conference, think about doing it - it is a very engaging and rewarding experience.

Direct Marketing

noreply@blogger.com (Jim Perry) — Thu, 03 Apr 2008 12:32:00 +0000

According to a recent Direct Marketing Association report, American financial services institutions are increasing their use of direct marketing. The $13.4 billion that U.S. banks and credit institutions spent last year on direct marketing advertising generated $178.8 billion in sales. How's that for ROI? These sales are forecast to hit $286.2 billion in 2012, according to the report.

Have an idea for us?

noreply@blogger.com (Brady Walen) — Tue, 25 Mar 2008 11:16:00 +0000

After reading about the latest Starbucks training sessions where each of its stores were closed for a three hour training session a few weeks back, and hearing about some of the initiatives it will be launching to get back in touch with its customers, I've been looking for examples of these initiatives coming to life in my trips since to Starbucks stores.

The one idea I particularly like, called My Starbucks Idea (Netbanker has a great write-up of how this can tie into banking) is a website that allows customers to submit ideas and feedback about all things Starbucks. And while the initiative is web-based, I was interested to see an in-store display this morning on the table with the coffee creamers.

The display is a small (8.5X11) table top with a stack of tear-off, business-card sized pieces of paper attached to it. These pieces of paper simply read "Have an idea for us?" - and, I have to admit, it intrigued me. I tore it off, and turned it over, the back simply directs you to mystarbucksidea.com.

It's not a survey. There are no questions. It simply directs you to submit your ideas to the bank's microsite.

I can definitely see the opportunity for financial institutions to offer this kind of feedback loop to their customers - and could easily be placed at teller stations or on check-write tables. In Starbucks' case, because it's such a large company, having the comments directed to one central point is a great way to keep them organized.

It's such a simple way to keep the feedback loop open for customer dialogue.

Will This Year Be the Tipping Point for Mobile Banking?

noreply@blogger.com (Brady Walen) — Tue, 25 Mar 2008 02:08:00 +0000

I guess that depends on who you ask, and how you define “tipping point”.

I read a report today suggesting that 2008 May Be the Tipping Point for Mobile Banking. The article focuses on research conducted by the Tower Group and brings up some interesting points about mobile banking, those likely to use it, and the technology that supports it.

But I’m not convinced that mobile banking will “move into the mainstream” this year as the article suggests. And even if it does enter the mainstream spotlight and increase awareness, I doubt that will translate into mainstream adoption by both institutions and customers.

Sure, I agree with Virginia Garcia, Research Director at Tower Group when she says “the downloads are faster, and the devices are better”, referring to cell phone technology that supports mobile banking. But what about preparation on the bank side? I’d be willing to bet that, while some institutions are planning to introduce mobile banking this year (these being the national and regional players that don’t currently offer it), many more haven’t taken that first step.

The article also quotes Garcia as saying "It's not necessarily for the mainstream customer base, but its going to grow as a factor in retaining and attracting new customers.” And, “As these bigger banks move into the regional markets, the smaller banks will have to develop technological platforms, such as mobile banking, to maintain parity and keep their customers…the competition is on a level playing field, forcing the smaller institutions to respond.”

I agree that mobile banking isn’t for the mainstream customer base. And, I also agree that smaller banks will need to take steps to stay competitive in terms of technology. But, I have a hard time thinking that mobile banking will play a significant factor in today’s institutions’ customer retention and acquisition strategies – or that banks and credit unions need to be worried about adding mobile banking to “keep their customers.”

And, even if the regional and national competition is on a level playing field offering mobile banking, the response by smaller institutions shouldn’t automatically be the addition of mobile banking just because the guy up the street is offering it.

Will mobile banking be offered by more institutions and used by more customers by the end of the year? Without a doubt.

Will 2008 be the tipping point for mobile banking? What do you think?

TD Commerce Bank Stakes its Claim: America’s Most Convenient Bank

noreply@blogger.com (Brady Walen) — Wed, 19 Mar 2008 15:05:00 +0000

TD Commerce Bank, the result of the TD Banknorth and Commerce Bank merger, will adopt Commerce Bank’s tagline and position itself as America’s Most Convenient Bank after the two banks come together.

TD Banknorth’s President and CEO, Bharat Masrani was quoted in a press release today about the bank’s position:

"TD Commerce Bank will own the convenience and Customer service space from Maine to Florida and will live the promise of being America's Most Convenient Bank…We will be relentlessly focused on building a better bank for Customers by staying open longer than our competitors and providing Customers with the WOW! experience they have come to expect."

This begs the question: What does it mean to be America’s Most Convenient Bank?

As far as I can tell, TD Commerce Bank’s idea of convenience focuses on the number of branches and ATMs in its delivery network; it also means staying open seven days a week and having extended hours at its branches on a daily basis. And, I can certainly see how this offers customers that live in the markets served by the bank added convenience – but what about those who don’t?

Would TD Commerce Bank be considered America’s most convenient bank to a bank customer in Savannah, GA? - Or any of the other markets along the East Coast where the bank does not currently have a presence?

The bank has made its intention clear to “own the convenience and Customer service space from Maine to Florida.” And, with convenience at TD Commerce Bank focusing so heavily on its branch and ATM presence, it will be interesting to see how it lives up to this promise.

Will we see TD Commerce Bank embark on an expansion/acquisition effort along the East Coast in the coming months?

And what about the rest of America? I don’t think many people here in Chicago have ever heard of America’s Most Convenient Bank.

ING: On Message Once Again

noreply@blogger.com (Brady Walen) — Mon, 17 Mar 2008 14:35:00 +0000

If you're an ING Direct customer, you recently received an email thanking you for being a customer of the bank. Not something we typically see from financial institutions. Have you ever received an email like this?

But, more important than the fact that ING is using email to stay in touch with its customers, is the fact that the bank recognized the email as an opportunity to reinforce its "save your money" message. Check out the closing of the email:

Much like my experience with the banker/baristas at the ING Cafe in Chicago, this is a great example of how ING is constantly looking for ways to remind us, both directly and indirectly, that the bank is here to help you save your money.

What message are you putting out there?

Person-to-Person Lending Sites Gain Traction with Small Businesses

noreply@blogger.com (Brady Walen) — Thu, 13 Mar 2008 14:08:00 +0000

In recent presentations and conversations with bankers, we've been talking quite a bit about the impact that person-to-person lending sites like Prosper.com are having on the industry. And, it's concerning that many in these audiences - usually bank executives, senior managers and marketing officers havn't heard of P2P lenders, or they have heard about them but don't consider them to part of the competitive landscape.

Yesterday's issue of the Wall Street Journal featured an article about the impact these P2P sites are having on small business lending; the article also provides a good introduction to how the person-to-person sites work. For more, check out Jim Bruene's perspective - I completely agree with him - now is the time to address the threat that P2P lending may pose to your institution.

Yes, we are shaking up the industry

noreply@blogger.com (Brady Walen) — Wed, 12 Mar 2008 15:18:00 +0000

Today’s issue of the Credit Union Times features an article Gen Y Entrepreneurs Shake up CU Industry, Helping to Reveal Authenticity – and, while I am not technically an entrepreneur, I am grateful to have been included alongside four other twentysomethings who are working to shake up the financial services industry.

The article offers a glimpse of what each of us are seeing out there in the industry. And, not surprisingly, there are some consistent points made by the five of us throughout the article:

If you want to be successful targeting Generation Y, you have to be authentic – this includes everything from your brand to your messages; from your people to your customer experience.

Technology is already reshaping the industry – from delivery channels to marketing to communications. And, today’s successful institutions will be those that can discern between the technologies that are relevant to their businesses and their markets, and those that are simply the latest hot trend.

People – today’s institutions need to recognize the value of Generation Y employees’ perspectives. Staying relevant to younger customers and members requires the input and direction from their peers – ask your younger employees what they think, and listen to them.

As consultants, writers, and speakers, the five of us will undoubtedly continue to shake up the industry this year. Please feel free to contact me with any questions about marketing to Generation Y; and, if you haven’t already, check out the other four members of Gen Y featured in the article that are shaking up the industry:

Jeff Stephens - Creative Brand Communications

Brad Garland - The Garland Group

Matt Dean - Trabian

Bryan Simms - Brass Media

Tom Broughton’s small bank is striking it rich

noreply@blogger.com (Brady Walen) — Tue, 11 Mar 2008 15:12:00 +0000

This was the byline from an article about Birmingham, Alabama based ServisFirst Bank that appeared last Friday on CNNMoney.com.

Now, replace Tom’s name with yours in this statement – sounds good, doesn’t it. How are you going to “strike it rich?”

Tom Broughton is striking it rich because his bank is clearly different from the competition; and, most importantly, ServisFirst Bank is offering distinct and real value to a specific target.

The target: “busy small-business owners who want fast, personal service and are willing to pay for it.”

Now, we all know that there are plenty of financial institutions that specifically target small-business owners. And, many of them promise fast, personal service. But much like Starbucks has demonstrated with high-priced coffee, ServisFirst knows there are people out there who are “willing to pay for it” – they’re willing to pay for the real, personal service offered by the bank. And, the bank has used this focus as a framework that informs everything from its products and services to its marketing efforts to its delivery channels.

“At his Birmingham, Ala., company there are no tellers. No ATMs. No advertising. No teaser-rate CDs. No fancy offices. No lollipops in the lobby. In fact, dear customer, these bankers don’t even want to see you in the lobby. Stay in your shop. ServisFirst will come to you.”

ServisFirst serves a specific target with a specific value. And this is a great example of a team that has looked critically at all the elements of the bank and its brand – even those that are often times considered to be an expectation (i.e. ATMs, rate ads, tellers, etc.), and has made some tough, but logical choices to organize around its core value – service for small-business owners at their place of business.

Capital Bank's Tuned-In Checking

noreply@blogger.com (Brady Walen) — Mon, 10 Mar 2008 16:12:00 +0000

North Carolina’s Capital Bank recently launched a rewards checking account offering iTunes downlads to customers who meet a series of basic requirements (ten debit transactions per month; log on to online banking once a month; and receive statements via email).

The Tuned-In Checking Account is similar to other rewards checking accounts we’ve been hearing a lot about recently, but rather than offering a higher interest rate, the account rewards qualifying customers with $9.99 in iTunes gift cards per month.

The account is targeted at Generation Y customers – high school and college students, and young professionals. And this makes sense, as many in this group would probably rather have the iTunes every month as opposed to a higher interest rate on account balances that may not generate significant interest in the first place.

Part of the bank’s marketing efforts for the new account includes the microsite www.tunedinchecking.com. On the site, the Capital Bank image and presence is downplayed in favor of the benefits of the account: free iTunes, free ATMs; and free checking are featured prominently. The animated site speaks directly to Generation Y with its playful visuals, the language used, and the lack of traditional bank website content.

While the site does a pretty good job of promoting the Tuned-In Checking account – and even allows people to apply for the account online, I would like to see the other accounts mentioned on the site (i.e. Savings) have the same online account opening abilities. I’d also like to see the “About Us” section of the website carry the same kind of casual language as other parts of the site – as opposed to using the same language from the bank’s main site.

As we’ve seen many institutions introduce versions of rewards checking accounts recently, I’m sure we’ll continue to see variations on the theme. With this account, Capital Bank has found a way to reach Generation Y with a relevant product and compelling message to not only open the account, but to keep it open and to actively use it.

I wonder if Capital Bank gets a bulk-rate discount from Apple on those iTunes gift cards…I can imagine that they’ll be issuing quite a few in the coming months.

Change the Story

noreply@blogger.com (Jim Perry) — Mon, 03 Mar 2008 12:55:00 +0000

My friends and co-workers all know that I usually begin each day with my favorite espresso drink from Starbucks. I am not just an unapologetic, loyal fan of their coffee and the studiously crafted customer experience that goes with it; I am generally an enthusiast for their approach to marketing. So I am usually on the lookout for references to the company in my favorite blogs. Last week, marketing guru Seth Godin mentioned them in passing while offering his thoughts on marketing in a recession. His blog post stated:

"Starbucks was the indulgence of a confident person happy to blow $4 on a cup of coffee. Starbucks can become the small indulgence for the person who just traded down to a small rented apartment. The challenge for marketers is to figure out how to change the story they are living so that their customers can change the story they tell themselves."

Starbucks can navigate a downturn in the economy because they have become part of their customer's daily life. They can remain relevant because of the adaptability of their "story." Seth's observation prompts me to think about the "story" being told by most financial institutions these days. Do their stories have the flexibility to adjust to the conditions of the marketplace? Do they even know what their "story" is or whether it is relevant to their customer? What do you think?

A Branding Conversation with Tom Asacker

noreply@blogger.com (Brady Walen) — Mon, 25 Feb 2008 15:47:00 +0000

In a recent post, I talked about the ABA New England Marketing Chapters' Branding Symposium that I attended last month. The presentations, lead by Tom Asacker, author of A Clear Eye for Branding, offered some great insights and really challenged attendees to think critically about their brands.

After attending the symposium, I contacted Tom with a series of questions in hopes that he would offer his insights and perspective relative to branding and financial services. His responses to my questions follow.

BW: Why is the concept of branding so misunderstood?

TA: Great question Brady. I’ve been trying to answer that one myself for years. Kierkegaard wrote, “Concepts, like individuals, have their histories and are just as incapable of withstanding the ravages of times as are individuals.” Well, individual’s bodies may be incapable of withstanding change, but their belief systems are more than capable. And that’s what has happened with the concept of brand and branding. Many people locked onto the original marketplace concepts -brands and branding as marks of ownership and later as trademarks, logos and image advertising - and built their reputations around those concepts; e.g. logo designers, identity consultants, advertising agencies, etc. Their mindsets and business identities are now tied to those out-dated concepts, which absolutely preclude a change and serves to perpetuate the misunderstanding.

BW: Why is a clear eye for branding important?

TA: It’s not simply important, it’s critical. What is a brand? It’s something or someone that a customer chooses to be associated with, be it a brand of music player, politician, motorcycle, retail outlet, financial planner, or bank. Branding is everything a person or organization does to create and maintain a strong feeling with customers so that they are predisposed to continually choose and recommend them. Drucker wrote, “There is only one valid definition of business purpose: to create a customer.” Understanding how and why customers choose, as well as how to appeal to that decision-making process, is what having a clear eye for branding is all about.

BW: What does it mean for today’s banks and credit unions to have a clear eye for branding?

TA: Ultimately, it means that they have a visceral understanding of how to intelligently invest their time and money to attract and retain customers, with everything from the design of their outlets and web sites, to their employee training, marketing communications, product and service offerings, and community outreach. Today’s is a much more challenging marketplace than even the recent past. And given the latest economic outlook, and the fact that more than 95 percent of the households in the United States already have an active banking relationship, organizations that fail to recognize and adjust to the new consumer mindset are destined for failure. Or worse, they’ll become one more of the living-dead, with a relentless and stifling focus on cutting costs and downsizing. As a long-term brand strategy, operational efficiency is seldom the path to greatness.

BW: What companies – and specifically financial institutions, do you see demonstrating this level of thinking in terms of brand?

TA: I find it interesting that no financial institution springs readily to mind. What could possibly be more emotionally compelling to customers than their futures and financial well-being? Coffee? That being said, there are a few who are pushing the idea of fanatical commitment to "wowing" its customers and employees, for example Umpqua Bank and Commerce One.

BW: What barriers to you see facing community banks and credit unions when it comes to branding? And, what steps can executives and marketers take to overcome these barriers?

TA: The only true barriers are mindset and will. Seek first to understand, and then have the audacity to do what you know is right.

Sleepy Markets and Tired Brands

noreply@blogger.com (Brady Walen) — Wed, 20 Feb 2008 18:05:00 +0000

I have spent the last few days at the ABA National Conference for Community Bankers in Orlando (which is a welcome break from winter in Chicago).

During my conversations with some of the bankers here, I’ve heard quite a few refer to their markets as dead, stagnant, slow, or sleepy. The attendees at this conference are community bankers, and many serve small communities, so I’m not surprised that they’re using these words to describe their markets - they're all over the country.

But, it was interesting to hear one banker in particular banker talk not about his "sleepy market", but about his "tired brand". I found this interesting for a couple reasons.

First, tired implies exhaustion, like his brand has been allowed to go unchanged for too long (In our experience this is extremely common – the “if it ain’t broke, don’t fix it” mentality). It’s exhausted, outdated, dull, mediocre and in dire need of a refresh, a jump-start, a critical evaluation. As a result of being tired, his brand isn’t having the impact he would like; it’s not creating the right perceptions; and it’s not allowing his customers to have the experience he would like them to have. I'd bet that his tired brand is becoming irrelevant to his market.

Perhaps more interesting than describing his brand as “tired”, is the fact that this guy recognizes that his brand is not as strong as it could be, or should be. Keeping a pulse on your institution and your brand, or taking the time to critically evaluate each, is critical to your institution’s success – especially in today’s marketplace where changes are happening faster than ever.

Over the last year, we have all seen branding become a buzzword – and I’ve seen a lot of bankers simply dismiss the idea or write it off as an industry-fad. In fact, I have seen it here at this conference – with bankers saying things like “I know branding is what everybody is supposed to be doing this year.”

It’s is not a one-time deal. As long as you’re in business, you have a brand that needs constant attention and the occasional refresh to keep it awake and relevant to the markets you serve – regardless of if your market is sleepy or not.