That is one of the many findings in “Made in Heaven or Marriage From Hell?” a report on social media in the financial sector. For the study, global communications firm Cicero surveyed 158 financial executives from around the world. Less than half said they were making effective use of social media.

One third of respondents said they are currently exploring how their financial institution might be able to use social media, while 11% claimed to have fully integrated it into their business strategy. One in ten said their financial institution does not use social media at all.

If you work in financial marketing, you should definitely check out the 28-page report. Cicero presents some interesting data, but many of the facts and conclusions don’t correlate with reality, or even the results contained within the report itself. Cicero expresses a clear bias in favor of social media, so you’ll need to keep an open mind and approach the study with at least some degree of skepticism.

Ignore This at Your Own Risk

Cicero Conclusion: “Social media is an opportunity that can no longer be ignored.”

Evidence suggests the contrary. If you’re ignoring social media today, there’s nothing in Cicero’s report that will convince you to change your mind.

Indeed there are many financial institutions that have ignored social media, and quite successfully. There’s nothing to indicate that those who have ignored social media are struggling, whether that be from a branding, communications or growth/performance perspective. You can, however, find many banks and credit unions that are struggling with their social media efforts. But you won’t find one where you can say, “This financial institution would be more successful if they just stopped ignoring social media.” There is no proof. None.

What would happen to your financial institution if they didn’t have a presence on Facebook or Twitter? Probably nothing.

Social media is just another communications channel. It’s a choice you have to make. But it isn’t a massively foreboding imperative, as Cicero asserts.

Results? Bah…

Cicero Fact: One third of respondents are worried about how to measure the success of social media activity.

When Cicero asked which methods were most effective for monitoring the impact of social media, 24% of financial executives admitted they “don’t know.” Nearly one in three felt things like re-tweets and number of Twitter followers were good metrics.

Social media will continue to struggle as a marketing/communications tool until researchers can draw a line — even a dotted one — between tweets, fans, followers, Wall updates… and the bottom line.

It’s worth pointing out that the number of social mentions a firm receives is not necessarily a byproduct of its social media strategy. Usually, people only talk about a brand following an experience they have with a company’s product/service. If your organization has sales or service problems, your social strategy will likely be all apologies. If your organization has sales and service success, your social strategy will be all thank-yous. That makes social mentions a better measure of a company’s sales- and customer service channels, not the strength of its social strategy.

Social Media = The Future of Communications?

Cicero Fact: “25% of respondents felt that social media offers new ways to communicate to tomorrow’s consumers. 30% of those surveyed see social media as the future of communications.”

This means that the vast majority of respondents (75%) don’t feel that social media is a new way to communicate with consumers, and 70% don’t see it as the future of communications, a point Ron Shevlin, Senior Analyst with Aite, noted in his review of Cicero’s report.

Cicero seems disappointed that only one in four financial institutions are “capable of seeing the light today.” The message seems to be that other financial institutions will either hop on board the social media bandwagon or get left behind.

That three in four financial institutions are unsure about social media’s future role and power should be seen as a good thing. Considering how severely banks and credit unions have been goaded into social media over the last five years, it’s refreshing to see financial marketers finally applying a greater degree of skepticism.

Psst…You’re Less Popular Than You Might Think

Cicero Fact: “40% of financial institutions said they were interested in social media because their brand is being discussed online, but one-quarter of respondents are daunted by the volume of social media traffic and how to monitor/manage it.”

Social media analysts often leave financial institutions believing that there is this vast, mysterious conversation about their brand occurring somewhere out in cyberspace. For most banks and credit unions, there isn’t. Consumers just don’t talk about banking in online social circles all that often. A study by The Financial Brand found financial institutions were mentioned only once per month for every $100 million in assets they have. So unless you’re one of the über big boys, you have no reason to sweat the miniscule volume of social data you’ll have to monitor and manage.

Cicero Fact: “41% were interested in discussions of their brand or firm occurring on social media.”

And what about the other 59%? Either they didn’t care what was being said, or (more likely) were conceding that people did not discuss their brand on social networks.

Finding Redemption

Cicero Conclusion: “Social media provides the financial sector with a form of repentance by offering a way to communicate and engage with consumers through innovative channels.”

Do banks need to repent? Maybe. But does it take a “new and innovative channel” to find redemption or to say you’re sorry? Nope.

Truthfully, there are probably better ways to say you’re sorry and make amends than through tweets and status updates. If you’ve wronged someone so severely that you need “repentance,” there probably isn’t much Twitter or Facebook is going to do for you. If you got caught cheating on your spouse, would you apologize through Facebook?

Cicero Conclusion: “The financial sector lost trust among the public during the financial crisis. Now social media arguably offers the sector a real opportunity to rebuild its brands and trust among consumers.”

As study after study has shown, people trust their own bank, but not “banks” in general. While a handful of megabanks have very serious trust issues, the truth is that most financial institutions are not facing a crisis of trust. The industry has a big black eye, but the need for individual banks and credit unions to repair and rebuild trust is actually very low. There may be reasons for financial institution to use social media, but the oft-cited reason “to rebuild trust” is not among them. If blown trust was indeed a problem, social media would not be the tool to use.

Cicero Conclusion: “Social media can offer the financial sector a new means by which to engage with its customers — to understand them better and slowly rebuild relationships.”

Yes, social media is a new means of communication. But that doesn’t necessarily mean it is an efficient tool, nor the one financial marketers should worry about most. Financial institutions have — for a long time now — had other means to figure out what’s on consumers’ minds — e.g., market research and focus groups. They’ve also had other forms of communication at their disposal — e.g., email. That doesn’t mean financial marketers effectively utilize these other tools. For many banks and credit unions, social media just represents one more channel where they will stumble. Financial institutions have mounds of (arguably more valuable) data they either ignore or under-utilize.

There’s a Difference Between Meek and Timid

Cicero Conclusion: “The financial sector has been slow to embrace the opportunities that social media provides.”

This simply isn’t true. Back in 2010, banking ranked third among the most active industries in social media, far outpacing consumer electronics, apparel retailers and travel/tourism. Today, nearly three in four financial institutions are actively using some form of social media. Banks and credit unions are falling all over themselves chasing social media rainbows.

But that doesn’t stop media outlets and consultants from rushing to label banking as “behind the times.” Nearly every story and every report published about social media in the financial industry includes some reference to how slowly banks have adopted it, truth be damned. It is simply assumed and accepted as fact that financial institutions are timid with any new innovation. Not true with social media.

 

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Survey Reveals Mix of Feelings, Approaches Towards Social Media in Banking
• The Startling State of Social Media in Credit Unions
• Special Report: State of Online Services in Banking
• Reality Check 2.0: Social Media Myths & Facts

In a 28-page report titled The State of Online & Mobile Banking, comScore explores nearly every issue and topic financial marketers are wrestling with today. What is the growth rate for online banking? Which online services drive greater engagement? Why don’t more people sign up for online bill pay or PFM? Are consumers aware their financial institutions use social media? What’s the adoption rate for mobile banking, and where is it headed?

In the report, comScore analyzes the state of online and mobile banking activity in the U.S., providing key insights into customer behaviors, attitudes, satisfaction, service usage and mobile adoption.

Mobile Banking Keeps Rising in Usage & Importance

In Q2 2011, 16% of the 234 million mobile users in the U.S. indicated that they conducted some type of financial-related activity from their mobile device in the past month. Nearly three-quarters of mobile bankers indicated interacting with banks on their mobile devices at least once per week, mirroring engagement frequencies seen for online banking use via a desktop or laptop computer.

Three out of every five mobile bankers are between the ages of 18-34, more than double the percentage of those who do not take advantage of mobile banking offerings in this demographic. Mobile bankers are also twice as likely to have a household income exceeding $100K vs. non-users (31% vs. 15%).

Security Concerns Thwart Adoption of Bill Pay

Bill pay continues to receive considerable attention across the industry, as banks increasingly try to grow their engagement with customers using this service. However, among those consumers who don’t use online bill pay, 43% say concerns with security are what keeps them from adopting the service. This signifies as massive 14% jump over 2010, when only 29% cited security concerns. Keep in mind, comScore’s study includes only internet users, so we aren’t talking about technophobes. These are people do a lot of things online, just no paying their bills.

Use vs. Interest in Online Services

A moderate percentage of consumers expressed an interest in various online customer services, such as Personal Financial Management, and security-based services, such as identity theft services. However, adoption of such services was less than half the rate of awareness in many cases (with the exception of account activity alerts), indicating an area of opportunity for financial providers.

Ron Shevlin, a Senior Analyst with Aite, noted the anemic level of interest in PFM in particular. “The comScore numbers are not reassuring for PFM vendors,” Shevlin said. “It might be too late to get Boomers — and maybe Gen Xers — interested in PFM.”

Shevlin also things don’t look good for P2P payments. “Nobody knows about P2P payments,” he said. “This is a cause for concern because a number of the core apps providers I’ve talked to recently are expecting P2P payments to be big, and become a revenue generator for both themselves and the banks that offer it.”

Email Marketing & Communications

With customers increasingly relying on online channels for managing their accounts, e-mail has emerged an effective, low-cost solution for communications. Consumer recall of email is quite strong, with 48% of consumers reporting they’ve received some form of e-mail communication from their primary financial institution in the last six months.

Social Media Struggles to Gain Traction

Even though banks and credit unions have flocked to social media sites, consumers haven’t noticed. A 2012 study by The Financial Brand revealed that 72% of financial institutions are on Facebook, 54% on Twitter and 49% on YouTube. But ComScore found that only 18% of consumers were aware their financial institution had a social networking presence. Four in five customers were either unaware or “unsure.”

http://thefinancialbrand.com/21384/2012-bank-credit-union-marketing-study-results/

Reality Check: Just because a consumer is “aware” their financial institution has a social media presence doesn’t mean they care. Even among those who are “fans” and “followers,” engagement rates are still extremely low.

Download the Complete Report for Free

The comScore State of Online & Mobile Banking report provides a comprehensive review of the digital banking industry, including emerging mobile channels. Results are based on a survey of more than 2,000 U.S. internet users. The study focuses on key trends in customer behaviors, attitudes, satisfaction, service usage and mobile adoption. The report includes 28 charts and graphs, all as equally fascinating as the three contained in this article. You can get your free copy after completing a simple contact form. The report is definitely worth downloading, and comes highly recommended by The Financial Brand. To download your copy, click here.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Survey Proves Value of Online Banking, Bill Pay
• Mobile Banking Explodes, Fast Becoming a Basic Expectation
• Checking Study Confirms Trends, Raises Questions
• Banking Ranks #3 Most Active Industry in Social Media

Assets: $1.03 Billion
Area served: Puget Sound Area, Washington State
Website: www.soundcu.com

Number of members: 110,000

Number of branches: 21
Members per branch: 5,238

Number of total employees: 210
Ratio of members to employees: 524:1

Top marketing executive: Robyn LaChance, VP/CMO
Number of employees in marketing department: Seven (3.3% of total workforce)

• One VP/CMO
• One Manager
• Four Coordinators
• One Assistant

Number of campaigns run every year: 7-10 major product campaigns

URL for Facebook page: n/a
URL for Twitter account: n/a
URL for YouTube channel: n/a

Systems & Tools

In-House vs. Vendor

Website

Marketing Channels Deployed

Favorite Campaign

That’s a tough one, but two campaigns come to mind. First, from a sheer results standpoint, we recently introduced a re-purposed home equity product as a no-fee, mortgage refinance option. The target audience was people who had about 15 years or less left on their mortgage, who wanted to take advantage of this current low rate environment but didn’t want to pay closing costs. We received excellent responses from members and non-members alike.

The second was a lighthearted branch relocation campaign. The new location was placed on the corner of two of the busiest streets in our capital city, Martin Way and Lily Road. To draw attention to the new address, the campaign graphically positioned “Martin + Lily” as sweethearts, depicting the names carved into a tree trunk surrounded by a heart. We had terrific feedback from the community, our own employees, and enjoyed many new members/accounts as a result.

The Biggest Challenges Over the Next 12-24 Months

We just merged a similar sized credit union into our ours. We are integrating systems in the Spring, and entering a completely new market as a result. Our challenge will be to gain market awareness and retain members from the merging credit union. A few short months before the merger integration we are converting online banking, online bill pay and mobile banking platforms for our legacy members.

Critical Products to Market This Year

Loans, loans, and more loans. And Checking.

Social Media Strategy

N/A – Currently under development.

How Do You Track ROI?

New members, new accounts, increased portfolio balances, all the usual. We generate reports from our MCIF as well as our core processing system.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• State of Bank & Credit Union Marketing In 2012
• Financial Firm Green Lights Social Media For All 1,000 Employees
• What’s The Single Biggest Financial Marketing Issue In 2012?
• New Visual Trends in Retail Banking Websites

Banks vs. Credit Unions: How their marketing strategies differ in 2012

Suze Orman Says: Some surprisingly mean and nasty things on Twitter

Spin Control? BofA’s CEO admits $5 debit fee was a colossal mistake

Umm, No… Can advertising really save BofA?

Money Chats: Coast Capital dangles $50 for folks to come in and talk

Book of the Month: “Branch Today, Gone Tomorrow” by Brett King

Yours Truly! Strongly worded letter gets prompt response from BofA

Case Study: A small bank’s struggles with social media

Dethroned: Queen of England revokes knighthood for ex-RBS chief

No Bonus: Current CEO at RBS turns down bonus after public outcry

Jumping In: How to ease your bank into social media

Social Data: Banks to mine social media profiles for loans and pricing

Simple Truths: Making banking easy ain’t easy

Woof! A bank for dog lovers

3 Lessons: Financial marketers can learn from Suze Orman’s botched prepaid card

Trust in Banking: A smart Q&A interview with Gallup’s Chief Economist

Ruthless Integration: HSBC’s approach to digital marketing

Gen-Y + Finance = National study of the mindset of 20-somethings by PNC

Digital Journey Manager: RBS hiring for new role

Digital + Physical: How banks can integrate channels seamlessly to drive growth

Are We There Yet? Mobile banking reaches critical mass for big banks

Common Language: Industry pushes for universal terms describing ACH payments

Growing Opportunity: Banks can learn from retailers’ mobile strategies

Marketing Semantics: BofA stumbles with localized messages in San Francisco

Consumer Controls: City Bank offers a mobile app that disables debit cards

Fracking: Bank launches website helping customers with controversial oil/gas leases

Credit Unions

National Campaign: Great idea…too bad it’ll never happen

VIP Members: Coastal FCU rewards valuable members with $1.5 million payout

Chasing Gen-Y: The future of credit union hinges on reaching this generation

Not Quite Adults: Why Gen-Y and credit unions are a good fit

Superfriends: Credit union campaign features cast of cartoon superheroes

Save Up: Credit union think tank needs volunteers to pilot test new program

Golden Mirrors: Early bird deadline to apply for CUES marketing awards

Web Upgrades: Credit union web firm L9 makes strides in 2011

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Special Report: State of Online Services in Banking
• Reality Check 2.0: Social Media Myths & Facts
• When Customers Seek Help on Twitter, Banks Fall Short
• Financial Marketers Tip Toe Between Irritating New Fees And Profitability

These are among the many questions Javelin Strategy & Research tried to tackle in their report, “Banking and Social Media: Easy to Say, Hard to Do.”

In their research, Javelin analyzed nearly 5,500 tweets sent by three of America’s biggest banks — BofA, Wells Fargo and Citi — involving replies to customers who had contacted them on Twitter. (Chase was excluded from the study because they are not active on Twitter.) Javelin specifically broke down how many customer service issues were resolved entirely with tweets vs. how many were diverted to other channels, like email or call centers.

“Social media is not a replacement for call center or in-branch interaction.”
– Mark Schwanhausser,
Sr. Analyst/Javelin

The research found that none of the big banks did an exceptionally good job of resolving complaints on Twitter.

Citi did the best job responding to customers via Twitter. They provided direct answers and successfully resolved customers issues using just tweets alone 36% of the time. Wells Fargo and Bank of America lagged far behind, with 11% and 3% resolution rates respectively.

That doesn’t necessarily mean customers’ complaints weren’t ultimately addressed elsewhere, but they were not resolved via Twitter — the customer’s chosen means of communication. Or perhaps it means big banks struggle to help customers period, regardless of channel.

Twitter Becomes a Lightning Rod

Javelin’s study included three separate research components: (1) the analysis of 5,489 public tweets, (2) an examination of 300 full Twitter conversations, and (3) an online survey of 5,000 customers. The research was conducted over a seven-week stretch from September 20 to November 10, 2011.

This period happened to coincide with Occupy Wall Street protests, the huge backlash over BofA’s $5 debit card fees, and Bank Transfer Day. What Javelin found was that Twitter became a lightning rod for angry customers, with tweet volumes jumping threefold at big banks’ customer service accounts.

A separate study by The Financial Brand revealed that two-thirds of all banks and credit unions are already on Twitter or plan to launch their account soon.

Customers Blow Off Steam, Banks Respond With Canned Tweets

Customers turn to Twitter to vent, usually when something has gone wrong. Optirate’s Serge Milman says this is like a customer hopping on Twitter to send the bank an SOS.

“Social media is best for blowing off steam,” noted one journalist at US News. “People like to complain online for a reason: it’s an effective way to quickly announce to many people why you are frustrated with a company.”

“Large banks have a long history of poor customer service, regardless of channel.”
– James L Belcher

That’s why Twitter has become a popular customer service option. People who have already encountered poor service in another channel feel that Twitter is there only hope to get a response. It’s nearly impossible to reach a real human being at big banks, but on Twitter customers feel there’s at least some chance of interacting with a live person.

And how do banks respond? With canned tweets. Javelin’s research showed that the majority of Twitter replies big banks sent to customers were scripted messages. Even though banks’ Twitter service reps address only a fraction of issues raised on Twitter, they generate repetitive answers. Usually, the bank uses service jujitsu to shifts the burden of next steps back onto customers.

That’s why David McMillin at Bankrate.com believes Twitter will be “far too impersonal to act as a customer service department for some account holders.”

An Annoying Extra Step

The Javelin report recommends that — whenever possible — banks should try to answer customer questions directly on Twitter. And experts tend to agree. The general guideline: answer customers’ questions within the channel that the conversation was initiated, whether that be Twitter, email or phone.

And yet that’s not how most big banks handle customer tweets.

“Resolving most issues via Twitter is essentially impossible.”
– Serge Milman, CEO/Optirate

Kimarie Matthews, a VP in Wells Fargo’s Internet Services Group, says to get customers the answers they need on Twitter “sometimes means connecting a customer with someone from Wells Fargo who is not on Twitter. And in some instances, to protect the privacy of the customer, an issue is taken offline.”

BofA spokeswoman Tara Burke said her bank’s approach was similar to Wells Fargo’s. “After initial contact we take the issue off-line to protect the privacy of the customer,” she said.

Sairam Krishnan, an authority on social CRM, says “Twitter should be a tool to save the customer’s time, to aid his convenience, and not as yet another step to conventional customer service.”

Indeed customers are bound to get frustrated if redirected to a service channel they’ve already tried. But maybe consumer expectations are unrealistic? After all, is it really even possible to handle sensitive banking matters on a third-party social platform?

“Anybody who understands the complexity of banking and the associated privacy rules will recognize the resolving most issues via Twitter is essentially impossible,” says Serge Milman, CEO of Optirate.

A Viable Service Channel?

According to Javelin’s research, the large majority of Americans have strong misgivings about mixing personal finances and social networks. Only one in six said they would be willing to receive updates about bank promotions and discounts. Far fewer than that — less than one in ten — said they would be willing to check their account balance through a social channel.

“Social media is not a replacement for call center or in-branch interaction,” says Mark Schwanhausser, who authored the Javelin research report.

Schwanhausser, Javelin’s Senior Analyst specializing in financial delivery channels, says social media is but one service option among many for customers needing assistance. “It’s not for all people now,” he adds. “And I don’t think it ever will be.”

Schwanhausser says that as financial institutions begin to participate in social media channels, “they need to be prepared to allocate sufficient resources to address and resolve consumer issues.”

Reality Check: If you’re going to be on Twitter, you’d better anticipate customer complaints and be ready to handle them… because those complaints are going to come whether you want Twitter to be a service channel or not.

Rachel King writing for ZDNet said, “There are plenty of people who are afraid of looking at any kind of financial data online, whether it be on a desktop browser or a mobile app — regardless of how safe it has actually been determined to be.”

Indeed one anonymous bank customer said, “I would never in a billion years send a tweet or post on Facebook to a bank trying to resolve an issue I may be having with my account.”

That’s why some folks are deeply pessimistic about Twitter’s role for financial institutions. “Large banks have a long history of poor customer service, regardless of channel,” said James L Belcher. “They’ll continue to provide poor customer service through whatever types of communication emerge after Twitter.”

James Van Dyke, President/Javelin, is undeterred. “Social media is the next frontier for the ‘financial institution + consumer’ relationship.”

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Online Account Opening Frustrates Customers, As 1 in 4 Abandon the Process
• Study Shows Social Media Sentiment Towards Banks Turns Positive
• 11% of Consumers Have a Social Media Connection with Their Bank? No Way…
• Social Media In Banking: Made In Heaven Or Marriage From Hell?

Monthly account fees are going up. Fees for replacing lost cards are up. Wire transfer fees, up. Money orders, up. Fees for certified checks, up. There are more conditions to waive fees. Customers who want paper statements must now pay fees. New mobile deposit fees are on the way.

Fees, fees and more fees. It’s all about fees.

The banking industry faces income pressure from multiple directions — a bad economy, a weak lending environment, Reg E, the Durbin Amendment. Financial institutions feel forced to explore an unprecedented range of new fees, from some that are tame and mild, to others that sound a little absurd.

“Banks are going to raise existing fees and institute new ones,” predicts Alex Matjanec, co-founder of MyBankTracker, a consumer-education website. “It’s all part of this push to get back lost income.”

Last year, a Pew Charitable Trusts study found that bank customers could potentially incur 49 different fees on a typical checking account.

And there isn’t a financial institution anywhere willing to promise that they won’t be introducing new- or higher fees in the near future.

“The sad but honest truth is that free checking was supported by interest rates and fees. Both those options are not available to banks now,” said Hank Israel, partner at Novantas.

“They have got to make up the income some place,” Vernon Hill, founder of Commerce Bank, told the NY Times. “I think we will see a lot more fees.”

“Banks may try a spectrum of charges — even for good customers.”
– Consumer Reports

Starting with increases in monthly account fees. Last year, BofA quietly raised the cost of its MyAccess checking account to $12 per month, up from $8.95. Citi’s basic checking product jumped from $8 to $10. And Chase started charging $12 to many customers who previously paid nothing at all.

Consumer Reports predicts that megabanks will lead in the three-way tango between financial institutions, their competitors and consumers. Consumer Reports says that big banks will continue to experiment with new fees and increases, while small institutions sit on the sidelines waiting to see if they should follow suit or woo angry customers by offering more competitive deals.

“Banks are closely examining what costs they can eliminate and where they might be able to charge, and what the market will bear and not drive customers away,” says Beth Robertson, director of payments research for Javelin Strategy & Research.

Financial institutions are responding to the dynamics of this fee-strained market with a range of different strategies. Some have deployed relationship pricing models pushing consumers to consolidate accounts. Other banks are shoving credit cards at consumers hand over fist, believing they have better margins with credit vs. debit cards. And banks will continue to do what they can to force consumers to electronic channels. If that means introducing new conditions that trigger fees, so be it.

Consumer Reports warns that banks might even try presenting new charges as a perk, not as a fee. They note TD Bank, who offers customers $1 off their monthly charges for switching to online statements instead of printed ones.

Mark Schwanhausser, a Senior Analyst with Javelin Strategy & Research, says banks that try to charge fees for things consumers used to get for free will fail. Instead, the industry “needs to find the fees people see value in.”

Banks Can Innovative… When It Comes To Fees

There are many critics who deride the financial industry as cowardly and anti-innovative. Not true. All it takes is a little income pressure, and whammo! Banks are willing to try anything, even a $5 fee on debit cards.

“Banks are adamant that they have been transparent about the price increases.”
– NY Times

“Banks are turning to all sorts of fees that fly under the radar,” notes Eric Dash for the NY Times. “Everything, it seems, has a price.”

Here are some examples of the creative new fees banks are gambling on.

Closing Account Fees
Some banks are now charging customers fees for closing an account too soon after opening it. US Bank and PNC charge $25 if it’s closed within 180 days. Chase tinkered with a $25 fee for accounts closed within 90 days, but dropped it in December 2011.

Teller Fees
For a while now, BofA has charged online customers for branch transactions. PNC will start hitting customers with a $3 fee for using a teller to transfer money.

Loan Payment Fees
HarborOne Credit Union in Brockton recently started docking borrowers $9.95 to make a loan payment with a credit or debit card. In the telecommunications industry, Verizon couldn’t even get away with a $2 fee for a similar service.

Online Bill Pay Fees
Wells Fargo charges $6.95 a month for online bill pay with its Value Checking account. After so many years where customers grew accustomed to free online bill pay, will they swallow new charges?

Card Replacement Fees
BofA hits customers for $5 when they need replacement debit cards — $20 if you want rush delivery (and who doesn’t?).

Savings Withdrawal Fees
BofA charges $3 for every savings withdrawal over three in a month, unless you keep $2,500 with them in savings. Other banks have introduced what they call “Excessive Withdrawal Fees” on savings- and money market accounts.

Mobile Banking Fees
A study by Pricewaterhouse Coopers found that most consumers in the UK would be willing to pay £10 ($15) per month for mobile banking services. Mercantile Bank of Michigan in the U.S. already charges customers $4 per month to view pending transactions on an iPhone.

Mobile Deposit Fees
US Bank charges $0.50 per check. Expect more banks to roll out fees for remote deposit capture as they introduce the service.

Pay By Phone Fees
According to Matjanec at MyBankTracker, banks also will start charging customers for paying bills over the phone as opposed to online. PNC started charging between $2 and $3 for teller-assisted transfers made over the phone. BBVA Compass charges $3 for this service, too.

Minimum Balance Fees
Citizens Bank now charges money-market customers $50 if their account balance falls below the minimum. Similarly, BofA charges a $25 fee to customers who dip below minimums on premium-checking accounts.

Check Cashing Fees
TD Bank unit will start charging noncustomers a $5 fee to cash checks at any of its branches. Chase and BofA both charge $6 to cash checks for non-customers.

Paper Statement Fees
Bancorp South now charges a $2 monthly fee if you get a hard copy of your statements mailed

Banks vs. Credit Unions

An analysis performed for Consumer Reports by Informa Research Services found differences among the more than 1,000 financial institutions it tracks. For example, among those that charge a monthly fee for noninterest checking, the average was $10.27 at the largest 10 banks, compared with $7.45 at banks with less than $4 billion in assets, and $6 at the 10 biggest credit unions. The fee was higher ($6.91) at credit unions that had assets below $4 billion than at the largest ones.

Source: Informa Research Services

Overdraft Fees

Banks have lost billions since Reg E went into effect. In 2010, banks only earned $30 billion in overdraft income, down sharply form the record profit of $37.1 billion one year prior.

That should explain why U.S. banks jacked overdraft fees up $2.50 in 2011. According to a study by Moebs Services involving 2,500 banks and credit unions, overdraft fees hit $30.00, up from $27.50 in 2010. Moebs said the fee hike was the largest one seen in 30 years.

“We went to banks themselves, and first thing they told us was that the regulatory cost is so onerous they have to offset it with higher fees,” Moebs said.

Some banks, like BofA, felt the situation with overdrafts had become so challenging that they completely nuked their overdraft programs altogether. Now BofA requires customers to link another account (e.g., credit card or savings) with sufficient funds if they want purchases made in excess of their available checking balance to go through. That’s right: customers can no longer “go into the red” at BofA — no more overdraft credit. For this pass-through “payment assurance” service, BofA only charges $10 per use.

That decision hit BofA hard. According to research from Credit Suisse, BofA lost an estimated $3.3 billion in overdraft income in the first year following Reg E’s implementation (and that’s on top of $2 billion in annual interchange revenue lost to Durbin).

The Congressional and consumer backlash against overdrafts isn’t over, and things could get even more difficult for banks on the fee front. The FDIC, for instance, is recommending banks not charge overdrafts on smaller items, so cardholders won’t get dinged $30 for a $4 cup of coffee.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• How Does Your Checking Account Stack Up Against the Big Banks?
• Kill Unfair Overdraft Calculations Before They Kill You
• One in Four Banks Defy Law, Won’t Disclose Fees to Customers
• Thinking BofA’s Debit Fee Refugees Are ‘Unprofitable’ is a Huge Mistake

The problem with most charitable gift cards is that the “donation on your behalf” usually goes to a cause important to the giver, not the receiver. But with ATBcares.com, it’s up to the recipient to choose which charity they want to support from among a list of 84,000 different organizations. The recipient of the gift card finds a cause important to them, then makes their donation by redeeming their gift card. Now that’s the right way to do it.

Buyers of ATB gift cards can choose from 10 different stock designs, or they can upload their own custom image — no charge.

The entire gift card process is very straightforward, and you don’t need to be an ATB customer to make it work. Everyone in the U.S. or Canada can purchase ATB charity gift cards, and then give them to anyone who has an email address anywhere in the world.

Buyers can purchase gift cards using either their Visa and Mastercard. The Financial Brand was not able to determine whether ATB has integrated its online banking platform with the ATB Cares service.

Once the gift card is purchased, the buyer gets an instant receipt for their tax records, while at the same time, ATB automatically emails the gift card off to the recipient.

Websites like ATB Cares signal a new era in corporate giving — one where the public controls how donations are allocated, not a handful of corporate officers behind closed doors. Many financial institutions now crowdsource input on which charitable causes they should support. Chase has been running its Community Giving contest on Facebook since 2009. And AmEx has its Members Project. But what makes ATB’s initiative unique is how it works: gift card buyers give up potentially valuable MCIF data, while gift card recipients are exposed to the ATB brand. You could almost think of this as a refer-a-friend program.

Key Question: Will those buying gift cards who aren’t already ATB customers receive marketing messages encouraging them to switch? Is there any reason ATB shouldn’t do this?

To build the ATB Cares website, ATB partnered with Benevity, an agency specializing in online corporate giving campaigns. Benevity says ATB is the first financial institution in North America to introduce a charity gift card where recipients choose which causes receive money.

“ATB wants to move toward a mode of corporate philanthropy that involves their clients and community at large in citizen philanthropy,” explained Bryan de Lottinville, President and Chief Executive Officer.
.
Indeed ATB is no slouch when it comes to corporate giving. Last year, ATB contributed almost 19,000 volunteer staff hours, $4.9 million in sponsorships, $1.19 million in donations, and $1.1 million in corporate fundraising for Alberta causes.

Banks have always been big on corporate philanthropy, but after the financial crisis in 2008, they found themselves subject to scrutiny, with greater expectations to give back and be socially responsible.

“Banks have an amazing opportunity to make a unique social impact based on sheer numbers and trust,” de Lottinville said.

“The challenge is, it’s hard for financial institutions to give back in ways that truly involve their clients and communities,” de Lottinville continued. “But most banks don’t get too far beyond charities like the United Way and the Red Cross.”

If someone just wants to make a straight donation, they don’t have to buy a gift card. They can simply visit the ATB Cares website, pick their charity and hit the “checkout” button.

All online donations are collected by ATB, then transmitted from ATB to the Canadian Online Giving Foundation who distributes funds to over 84,000 registered charities. The COGF, itself a registered charity, serves as escrow ensuring every penny a contributor donates makes it to the causes they selected. If there are any administrative fees associated with a donation, ATB promises to pick up the bill.

ATB says it will match 10% of all donations made to Alberta based charities up to a maximum of $1,000. The exception is religious organizations, however exemptions are made for those representing nondenominational community- and social services. In aggregate, ATB will contribute up to $100,000 in matching funds against the total donations made to Alberta causes through the ATB Cares site.

The bank intends to launch a variety of different donation-matching programs throughout the year. Presumably some of these promotions will be focused exclusively on specific charities selected by ATB.

Presently, ATB has a dedicated Facebook page established specifically for the ATB Cares initiative. Although ATB is active on Twitter with multiple accounts, the bank has been almost silent about ATB Cares in its tweets. Nothing really at ATB’s main corporate Facebook page either. But it’s refreshing to see a financial institution finally resisting the urge to drown every single promotion it runs in thick layers of unnecessary social media sauce.

Nice job, all the way around.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Credit Union Launches ‘Check In for Charity’ Social Media Drive
• Fifth Third’s ‘Duo’: The First Real Combined Debit + Credit Card in the US
• People Switching Banks More Often, Study Reveals Surprise Reasons
• Meet FRANK, Maybe The Coolest Bank Gen-Y Has Ever Seen

According to a study from Accenture, banks still have a long way to go to repair and improve relationships with their customers. The study suggests consumers who got burned in the financial meltdown are holding a grudge against the banks they blame for today’s economic mess.

Accenture’s research revealed that banking customers are less likely to recommend their provider than last year, despite being more satisfied with the service they received.

It’s as if consumers are saying, “Yes, my bank did a better job. But I’m still very mad at them.”

What’s intriguing is that a similar study conducted in the U.S. by Prime Performance found that consumers rated their individual experiences with financial providers very highly, even though overall trust in the banking industry is down.

More Satisfied… But Less Likely To Recommend

Accenture’s research, which encompassed 4,000 checking customers in the UK, showed that customer satisfaction levels in retail banking improved over the past year. Accountholders satisfied who say they are satisfied with their bank rose from 56% to 60%.

The number of customers complaining about their bank dropped from 17% to 13%. Among those customers with a complaint, more customers were satisfied with how their problem was handled, up from 34% to 39%.

Despite these improvements, the survey revealed that the number of customers who would recommend their bank to family and friends has fallen over the past year, down from 61% to 47%.

This wasn’t the only bad news the Accenture study contained. Only two out of five customers surveyed said they felt their bank was fair and transparent, and the same number said they were getting good value for their money.

“While customers may think their own bank is doing a decent job, the banking industry as a whole still has a long way to go to rebuild its reputation and win back the advocacy of its customers,” said Peter Kirk, author of the Accenture study and head of their UK banking division.

“In order to rebuild relationships, banks need to invest more in improving customer service,” Kirk added. “They should also look at rewarding customers through loyalty schemes.”

At least Kirk sees a silver lining. “These results show that the banks’ efforts to fix underlying service issues and engage better with their customers are working.”

Good News: Customer Switching Declines

“There is a clear problem that customers perceive the switching process to be overly cumbersome.”

Accenture’s survey showed that switching levels among UK banking customers declined in 2011. Only 11% of respondents said they had recently switched one or more products from their bank, compared with 16% a year ago. Similarly, research from Prime Performance found that U.S. consumers said they were less likely to switch… but that was back in the first half of 2011. Now if Prime Performance repeated their U.S. study today, in the wake of the turbulent year that left big banks marred, these numbers would be radically higher.

Of the 6% who switched checking accounts in the Accenture study, one in four encountered problems with the process. Nevertheless, a large majority felt switching was still worth it, and 75% said they were pleased they made the switch.

Among those who did not switch their checking account, 90% said they had no desire to change. The remaining 10% wanted to switch but did not do so, with half saying they thought the process would take too long.

“With nearly a quarter of those switching their current account still experiencing problems, the industry certainly needs to tackle the shortcomings in the system to create fluidity in the market,” Kirk said. “There is a clear problem that customers perceive the switching process to be overly cumbersome, which does not necessarily match reality, and this needs to be addressed.”

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• UK Banks Feel Pressure as Satisfaction & Loyalty Sink
• Despite Turbulent Year, Consumers Are More Satisfied With Banks & Credit Unions
• Consumers Sour on Big Banks, Sweet on Credit Unions
• Datahead: Opt-in, Reg E, Innovation, More…

Best Use of a Celebrity Spokesperson

Financial Institution: DnB, Norway
Title: Good Morning Mrs. Clooney

This spot is like a 30-second version of “The Hangover” for women. You wake up in a hotel room. You’ve obviously had a rough night. You look down at this ginormous rock on your ring finger. You’re married? You weren’t yesterday. You pick a wedding dress off the floor. Before you can think “What have I done???” none other than George Clooney steps out of the bathroom — for real, in the flesh. “I like your dress,” says the handsome Hollywood star. “Looks better off than on.” O.M.G. This commercial from DnB, a Norwegian bank, is hilarious. It’s a bit indirect with the link back to financial services: “Some people are lucky in life. For the rest of us, saving up can be smart.” But who cares? It’s super funny. The one-minute spot has been viewed over 2 million times on YouTube.

DNB – MRS. GEORGE CLOONEY

Most Freaky Guerilla Stunt

Financial Institution: NAB, Australia
Title: Guerilla Traps

NAB went fully guerilla with this pair of clever stunts. The Aussie banking giant produced two fascinating spycam videos capturing how people react when forcibly trapped. In one video, job applicants are held captive in an interview by a creepy manager who bolts and bars the doors. In the other video, apartment shoppers get locked inside a unit by the rental agent. The point? No one likes to get trapped, even in a home loan, so consumers should consider NAB’s flexible options. Don’t try this in kind of campaign in America, or you’ll get sued for kidnapping. Seriously.

NAB – TRAPPED IN JOB INTERVIEW

NAB – TRAPPED IN APARTMENT

Best Tear Jerker

Financial Institution: ASB Bank, New Zealand
Title: Mint Sauce

A young boy wants a new Nintendo DS. Alas, he can’t afford it. So the plucky little New Zealander decides to raise a sheep for slaughter (as boys in New Zealand so often do). But after nurturing his baby lamb, he has starts having second thoughts. In the end, he can’t do it, and opts to sell his sheep’s wool instead of its carcass. You know the expression, “You can sheer a sheep many times but only fleece it once?” It’s a touching production with a refreshing and honest perspective on humanity. It’s much more clever than many of the spot’s “Lemonade Stand” counterparts you see so often in the U.S.

ASB BANK – MINT SAUCE

Best Use of Man’s Best Friend

Financial Institution: FNB, Africa
Title: Lost Dog

This moody, 90-second TV commercial shows the lengths people are willing to go to for their pets… but with a clever, unexpected twist at the end. The minimalistic soundtrack (think: Trent Reznor’s soundtrack for “The Social Network”) creates a palpable tension, but the lofty narrated speech isn’t really needed. Dog lovers will totally relate to this spot.

FNB – LOST DOG

Best ‘Glee’ Knockoff

Financial Institution: Innovations FCU, USA
Title: Bad Romance

The credit union’s staff get together for a dance routine ala Glee, set to Lady Gaga’s “Bad Romance.” There are two questions that will probably cross your mind when watching this video: (1) Who is this video for, and (2) how did a credit union with no more than 50 staffers wind up with so many young and attractive employees? The 4:48 long video obviously took a lot of staff time to produce, but with only 2,925 views, you might think it was more work than it was worth. But… Innovations’ employees clearly have a lot of fun making these little dance numbers, so maybe the answer to the first question is: The video is primarily made to benefit staff as an internal team/culture-building activity. You can see another video with the whole Innovations’ staff (including the CEO) in this superb 2009 Christmas video.

INNOVATIONS FCU – BAD ROMANCE

Most Ridiculous Lawsuit

Financial Institution: New Zealand Credit Union
Title: Piggybankers

This spot shows average consumers lugging their banker around everywhere, like monkeys on their backs. When one person toting a piggybanker walks into a New Zealand Credit Union branch, the banker gets tossed out. Bankers in New Zealand didn’t care for the message and filed a complaint, saying that it was an attack that discredited registered banks and thus was a deliberate attempt to undermine the stability of the country’s entire financial system. Psshaw!!! It’s a parody, lighten up.

NZCU – PIGGYBANKERS

Most Bizarre Cartoon

Financial Institution: Numerica Credit Union, USA
Title: Animal Instincts

This animated spot with bears and bunnies is so bizarre, you might have a hard time believing it’s a real commercial that actually aired on TV. You can watch another wacky animated ad — this one with raccoons — at the credit union’s official YouTube channel.

NUMERICA CREDIT UNION – ANIMAL INSTINCTS

Best Drive-Thru Theater Act

Financial Institution: Michigan First Credit Union, USA
Title: Boogie Woogie Banking

Michigan First set up a hidden camera to film members’ reactions as a dance crew puts on a show in the credit union’s drive-thru lanes. “Would you like some entertainment today while you wait,” the drive-thru service rep asks. “Ummm, sure?” A troupe of seven young dancers pops out of nowhere, doing their thang to C+C Music Factory’s “Everybody Dance Now.” The credit union also surprised drive-thru members with a mariachi band.

MICHIGAN FIRST – BOOGIE WOOGIE BANKING

Best Mr. Mayhem Imitation

Financial Institution: RaboDirect, Australia
Title: Stealing Your Dreams

A metaphorical thief working on behalf of big, bad banks steals people’s financial dreams — the same kind of dark humor found in Allstate’s Mayhem anti-spokesman character. Consumers are encouraged to steal their dreams back with a 6.5% term deposit.

RABODIRECT – STEALING YOUR DREAMS

Best Pirate Movie

Financial Institution: Island FCU, USA
Title: Pirates Tale

Aye, this video be a wee bit unusual mates. It starts with a one-minute narrative about big banks swindlin’ yer doubloons, then shifts into a singing/dancing pirate act (if you’re thinking of “Pirates of Penzance,” you’re about right). The lyrics, costumes and props in this video are all worth checking out. The credit union turned the three-and-a-half minute pirate production into a 30-second TV spot. Their website even has a banner ad saying “Tell yer bank to walk the plank!”

ISLAND FCU – ARGH, IT BE A PIRATE TALE

Best Villain

Financial Institution: NAB, Australia
Title: Banks Hate Us

You’ve heard the expression, “The enemy of my enemy is my friend.” Well NAB tries to ingratiate itself with consumers in this TV advert by painting itself as the bank hated most by other bankers. The bank’s reasoning: If other banks hate NAB, they must be doing something right. The spot puts a fresh spin on an all-to-common meme in financial advertising: the reasons why people hate banks.

NAB – UNPOPULAR

Best Customer Testimonial

Financial Institution: Webster Bank, USA
Title: Type W Personality

This ad campaign features real Webster bankers and customers. The spot tells the story of one customer, Pat, who was about to depart for an early international flight. But Pat forgot her passport, which was locked in a Webster safety deposit box. So she calls Cheryl Poryanda, a real VP at Webster, who wakes up some folks to have them open the branch early. “Losing sleep over her customer’s needs? That’s just a part of Cheryl’s ‘Type W’ personality.”

WEBSTER FINANCIAL – TYPE W PERSONALITY

Weirdest Use of a Talking Squirrel

Financial Institution: BankWest, Australia
Title: Click to Chat

A middle aged man woos his lunch date when a gust of wind suddenly blows his toupee off. Yikes! Fortunately, there is a talking squirrel lunching at the table right behind him. The helpful little bugger plops his tail perfectly over the man’s hairless dome. His date doesn’t notice, the man’s dignity saved. It’s cute. It’s creepy. And what does it have to do with the bank’s innovative click-to-chat online customer service program? Who knows? But aren’t talking squirrels cute?

BANKWEST – CLICK TO CHAT

Best Use of Bad Habits

Financial Institution: UBank, Australia
Title: Habits

This spot presents some common habits like nail-biting and toe-tapping in a lighthearted manner, then encourages viewers to start a new habit — one that’s good for you: a savings habit. As with many TV commercials these days, UBank opts for the creative non sequitur — 23 seconds of acerbic humor, followed by a casual segue into the product offer. It’s a good ad — better than most bank commercials — but it could do a bit more to highlight the benefits of frequent saving.

UBANK – HABITS

Best Use of a Goofy Foam Costume

Financial Institution: NAB, Australia
Title: We Killed The Asterisk

NAB ran a whole series of commercials where a couple of secret agents (Blues Brothers look-alikes) defeat a guy wearing a foam asterisk costume. The asterisk always ends up on the run and imperiled… or worse. NAB says consumers will undoubtedly encounter this evil asterisk character whenever other banks claim to have free checking. So NAB “kills” the evil asterisk to emphasize that their checking accounts have no/fewer conditions.

NAB – WE KILLED THE ASTERISK (ROCKET)

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Wanted: Vice President of Unbanking
• Kiwibank Imitates ‘Call of Duty’ Spy Game With ‘Operation Easyswitch’
• Credit Union Ads Admit Two-Pronged Truths
• Special Report: State of Online Services in Banking

Wedbush describes their approach as a “compliance friendly way for financial professionals to actively join the dialogue.”

The company is encouraging all of its financial advisors, investment bankers, traders, analysts and other employees to engage in social media for business purposes under the Wedbush brand.

“Each area of our firm markets a different service to a different audience,” explained Natalie Taylor, Vice President of Marketing, Wedbush Securities. “Limiting customization only prevents the Wedbush brand from accelerating into a market with a communication reach that spreads faster and further than we’ve ever seen.”

By distributing social media responsibilities to hundreds of employees — each with their own unique personality — Wedbush hopes to humanize online conversations, avoiding what they call the “industry-standard canned responses” you see so commonly from other financial institutions.

“We want our team to be truly social with their networking,” Taylor said. “By offering a more organic approach, their personalities will show and allow them to truly connect with people.”

While Wedbush has let its employees off the social media leash, this newfound freedom does not come without some caveats.

For starters, employees can’t just dive right in. They must first undergo a modest level of training on the proper business use of social media in a financial context. Additionally, Wedbush has a social media policy that provides guidelines, outlines expectations and explains appropriate usage.

Furthermore, employees are limited to the three biggest social media communities — Twitter, LinkedIn and Facebook — at least for the time being. The company hopes to see its employee social media program expand.

“Down the road, we anticipate looking beyond the ‘Big 3’ and venturing into other social platforms such as Google+, YouTube, SlideShare, industry forums, etc.,” Taylor told The Financial Brand in an interview.

Wedbush sees social media as an increasingly critical component to every financial firm’s marketing plan and overall growth strategy.

“Many firms have been reluctant to allow social media,” Taylor said. “But Wedbush sees it as an integral part of the sales and marketing mix.”

“If you aren’t on board,” she warned, “you will get left behind.”

Employees can’t use their personal social media accounts for Wedbush business. They must instead create separate professional accounts wherein all content and activity — regardless of the nature, professional or personal — will be treated as official business and company policies will be enforced.

The company is monitoring employees’ use of social media to ensure content is appropriate, ethical and compliant. Requiring staff to create special, separate professional accounts will undoubtedly make monitoring employee activity easier.

Wedbush partnered with Socialware, a significant player in the financial social media space, to help the company properly review and archive its employees’ social networking communications. Socialware also provides Wedbush access to a large library of social media training- and regulatory resources specific to the investment industry.

Analysis & Conclusion

This isn’t Wedbush’s first foray into the social media jungle. They are already on Facebook and LinkedIn, and they launched their Twitter account back in September 2011. On the Social Media page at the company website, Wedbush even touts its Wikipedia entry — not something you see many financial institutions do.

Whatever your feelings might be about the general importance of social media in the financial industry (or lack thereof), you’ve got to give Wedbush credit for trusting so many of its employees to make responsible decisions when interacting online. It’s rare to find any company — much less a financial institution — that’s willing to extend so much faith and communications power into its staff. Of course some may argue, and rightly so, that these are the same employees entrusted to conduct millions of dollars in transactions, so it shouldn’t be too great a leap to allow them some degree of social media latitude. Fair point, you’ve got to admit.

It will be interesting to see how this experiment from Wedbush plays out. But based on a similar initiative from Best Buy, where some 3,000 employees have successfully manned the company’s Twitter account since 2009, it shouldn’t come as any surprise if Wedbush employees are still posting tweets and Wall updates in 2015 or beyond.

Taylor at Wedbush is optimistic too.

“As we become more sophisticated in our social media communications,” she said, “we can explore scalable, proven ways to grow our presence and increase our engagement with prospects and clients.”

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• No ROI on Social Media? Here’s Why
• Does Google+ Matter to Retail Financial Institutions?
• 11% of Consumers Have a Social Media Connection with Their Bank? No Way…
• Peek Inside: Sound Credit Union’s Marketing Department

If you have something you’d like to contribute, either leave a comment below, or send an email to the editor. If you’d prefer your quotes remain anonymous, that’s fine. But if you want attribution for your insights, please be sure to provide your full name, title and current employer.

Article #1: Keeping Creativity Alive in Financial Marketing

A recent guest post on The Financial Brand raised some really good questions about creativity in the banking industry. How can bank and credit union marketers maintain their creative energy? Doesn’t it get boring working on the same old stuff every day? When you’ve already done 100 different auto loan promotions, how can you come up with another concept for number 101?

Employees at most ad agencies and marketing firms enjoy a wide variety creative assignments from multiple clients spanning many divergent industries. But those working inside bank and credit union marketing departments (as well as creative firms specializing in financial) don’t have this luxury. They have to grind it out. So how do you keep your creative muscles strong and limber when working within a single vertical such as banking? Where do you draw inspiration — other industries, design books? How do you avoid regurgitating the same tired ideas you’ve already explored dozens of times before? How do you keep your ideas fresh?

What does it take to get creative ideas approved internally? How do you present your concepts to senior leaders, especially when you know there are curmudgeons eager to shoot down anything that isn’t dull and boring? When you get your creative ideas quashed, how do you find the resilience to bounce back?

For managers, how do you keep your creative employees motivated, particularly when they’ve had so many of their ideas rejected? What tips, tools and tricks help you stimulate creativity in your staff? When it’s time to hire a new creative person, what are you looking for? How can you be sure a new employee won’t get burned out on financial marketing in three months?

If you work at a bank or credit union in an in-house creative role, The Financial Brand would love to hear from you. Similarly, if you work at an ad agency or marketing firm specializing in financial, please share your advice and insights.

Article #2: Profiles of Bank & Credit Union In-House Marketing Departments

There is virtually no discussion — no articles, nothing — on the subject of how to structure and manage an in-house marketing department at retail financial institutions. That’s why, for quite some time now, The Financial Brand has wanted to run articles profiling the internal marketing departments of various banks and credit unions. How many employees do you have working in marketing? What are their titles and roles? How is the department organized? Who does the top marketing person report to? Who writes the marketing plan, and how many pages long is it? How many campaigns do you run a year? How do you get support from staff and senior management for marketing initiatives? What social media channels are you using, and when did you start using them?

The Financial Brand is looking for financial institutions willing to volunteer for an article profiling their in-house marketing department. Don’t worry, nothing proprietary or awkward will be published, and you’ll have the opportunity to approve the article prior to publication. If you’re interested, please send an email to the editor.

Article #3: Working Effectively With Ad Agencies

A few years ago, The Financial Brand wrote an article offering banks and credit unions advice on picking the right ad agency. In response, one reader who worked at an ad agency suggested a similar story but from the opposite perspective: what do creative shops look for from their financial clients. An excellent suggestion indeed.

If you work at a marketing firm specializing in financial services, what do you expect from your clients? What kind of information do you need in order to successfully launch a project? What are your biggest frustrations about working with clients in the financial industry? Who are the best clients to work with and why? Who are the most difficult clients to work with? You know, like the kind who say, “I don’t know what I want, but I’ll know it when I see it.” Or, “You can use any color you want except orange because my wife hates orange.” Come on, this is your chance to lay it all out there.

Conversely, if you work at a bank or credit union, what advice do you have for your peers when working with creative marketing firms? What can they do to improve their relationship with their ad agency?

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Peek Inside: Sound Credit Union’s Marketing Department
• Calculating the Time-Opportunity Costs of Social Media
• Your Service Is Not What Differentiates You
• Bank’s Innovative Charity Website Signals New Era in Community Giving

A guest post from Tara Street, Co-Owner of BraidCreative.com

If you work in marketing at your credit union, “creativity” should rank high in your job description. In the ad biz, this makes you what’s known as an “in-house creative.”

The double-edged sword of working as an in-house creative? Yes, you’ve got an insider’s understanding and deeper level of ownership that no outside creative firm ever could. But those working at ad agencies typically get to work on a wider range of concepts for diverse clients in different industries. Your creative challenge working in-house is that you don’t have much variety. Everything — every drivethru banner, every billboard, every email campaign, every promotion — all boils down to marketing the same darn thing: a credit union.

So the question is, when all your ideas have to be “credit union” 24/7, can creativity even stand a chance?

Creative Burnout vs. The Creative Blahs

If you have too many creative problems to solve in too little time, you’ll get creative burnout. But working in-house, you wear lots of hats… and sadly creativity is the one you get to wear the least, so you don’t usually have to worry about burnout. The challenge working in-house isn’t the number of creative problems you have to solve, it’s having too little room for creative freedom. This is what’s giving you the creative blahs. How many ways can you compellingly, cleverly or just plain clearly talk about “member-owned?” Seriously.

The two favorite cures for creative blahs in-house marketers like to prescribe themselves:

1. Cute/Crazy Theme + Punny Headline
2. Boring Stock Photo + Stuffy Headline

These trusted approaches might get the job done, but they’re just treating the symptoms not the problem. And they can be a big disservice to your credit union’s brand.

What’s The Cure For The Common CU Blahs?

To keep your ideas fresh, you need to find ways to constantly keep your creativity muscle active. For instance, I like to draw in meetings, routinely saving my illustrated snippets for future inspiration. But at a fundamental level, you need to find ways to stay creative and avoid getting stale without getting just plain silly.

So here’s a way to diagnose and prescribe a meaningful treatment for the common in-house creative challenge: Ask yourself, “Is this creative project ‘promotion’ or ‘brand’?” Ask this question before you begin any project, every single time.

Vanilla is Not Blah. It’s The Base.

Your brand is like vanilla ice cream. It’s how you explain the difference between your credit union’s and  the other credit union down the street. So back to the question of how many ways you can say member-owned? Pick one. Figure out your brand message + style and stick to it — no matter what. This is going to be the vanilla base of your brand. Just be sure to craft it with care — like a marble slab of well-made fine vanilla ice cream.

THE VANILLA – A BRAND PIECE
Think of it as the intentional base. Not boring!

Toppings Are The Variety

Even the finest plain can still be… well, kinda plain. That’s where your promotions come in. They are the toppings. The loan push, the home equity push, the credit card push — that’s where you can avoid the creative blahs. But don’t go overboard. Don’t douse your vanilla in hot sauce. It should still compliment the base. Think about your brand’s personality and your audience before choosing the toppings, then sprinkle the appropriate creative flavors into your mix. That’s your chance to tap all that inspiration you’ve been gathering, or time to pull out your markers and start drawing in your next staff meeting.

THE TOPPINGS – A PROMOTIONAL PIECE
Where you can exercise your creative muscles. But use responsibly!

Striking Creative Balance

When it comes to brand pieces, replace “boring” with “deliberate” and “intentional.” But when it comes to promotional pieces, you can brush off your creative hat and have fun (responsibly!). Hopefully you’ll soon be able to replace those routine creative blahs with some creatively rewarding bright spots.

Tara Street is co-owner of BraidCreative.com where she blogs about branding methodology and empowering the creative professional.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• 4 Ways ‘Bank Transfer Day’ Is Silly
• Credit Unions, Here’s That Awareness Campaign You’ve Been Waiting For
• Best of Credit Union 2011 Diamond Award Winners
• US Bank Steals Page From Credit Union Playbook

Executive Summary: Superb recap of the strategic issues facing the financial C-suite

Image Woes: Fascinating interview with Anne Finucane, BofA’s CMO

12 for 2012: A dozen big ideas for the financial industry this year

New Years Resolutions: Ten things financial marketers can’t ignore in 2012

Going Broke: 1 in 2 Americans are poor or low-income

Multiple Millions $$$: Leaked email from bank exposes overdraft’s seedy underbelly

Looks Can Be Deceiving: A bank can look good but have an ugly brand

$300 Million Up For Grabs: BofA shops for new ad agency

Products & Services

BofA Gives Guy The Boot: And all over a measly 80¢ typo

Begging & Pleading: Music video and blog finally force BofA to finish home loan

Freedom of Choice: Fifth Third lets customers dictate features of online bill pay

eTrade Keeps Encroaching: Now offering remote mobile deposits

Lowering the Bar: Will AmEx drag its brand down by offering prepaid cards?

Fine Print: Experts troubled by Suze Orman’s prepaid cards

Alternative Banking: Regions expands services for the underbanked

Social Media

Facebook National Bank? It could happen…

Naysayers: Financial advisers seeing fewer benefits of social media

Social Currency: Citibank lets customers pool rewards points through Facebook

Facebook Milestone: Commonwealth Bank celebrates 100,000th fan

Delivery Channels

Email Marketing: How one credit union increased revenue per email 205%

Wallet Killer: Don’t expect mobile payments to take off anytime soon

Multi-Channel M&A: Where do branches fit?

Gift Cards: Now dispensed through ATMs

Face to Face: BMO expands retail video conferencing with consumers

Digital Merchandising: Jyske Bank installs 750 CoolSign LCDs — six per branch

Credit Unions

Scenario Planning: Drivers, values and strategic questions for credit unions

Seeking Gen-Y: How credit unions attract this elusive age group

Save to Win: Nebraska credit unions launch savings lottery

Bank Transfer Day: CUNA seeks trademark on populist slogan for switching event

Fad or Functional? The State of Social Media for Credit Unions

Early Bird Discounts: Now at the National Credit Union Youth Week online store

Switch Kits: Credit unions making it easier for consumers to move their money

Pretty Clicky: Credit union microsite engages 33,734 unique visitors

Student Branches: Credit union opens 3 branches in Ohio elementary schools

Braves Promo: Credit union teams with Atlanta Braves for great member perks

This article © 2012 by The Financial Brand and may not be reproduced.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Q&A: BancVue’s Kasasa Tunes Checking Product
• A Smarter Way to Drive Auto Loans
• State of Bank & Credit Union Marketing In 2012
• The Echo Project: A Credit Union Blueprint to Attract Gen-Y

Inadequate budgets.

According to The Financial Brand’s 2012 Bank & Credit Union Marketing Survey, bank and credit union executives say their organization’s lack of marketing investment is what holds them back, this despite the fact that nearly half saw their budgets increase in 2012. They also feel that their I.T. systems are limiting, that it’s difficult to get employee support for marketing initiatives, and (of course) there’s always a boatload of compliance headaches.

If financial marketers seem cranky, maybe they have good reason to be. The turbulence of 2011 strained both banks and credit unions alike, and it doesn’t look like 2012 is shaping up to be much easier. Indeed, marketing executives at banks and credit unions have their work cut out for them this year. They say their number one priority is to increase their financial institution’s lending portfolio. How? By cross-selling mortgages, auto loans and credit cards to existing customers. But the lending market — everything about the entire economy — isn’t cooperating. There aren’t many consumers brave enough to apply for credit in this rotten economy, and only a handful meet lenders’ new, stricter requirements.

The 2012 Bank & Credit Union Marketing Survey also revealed that financial marketers plan to emphasize their e-strategies more in 2012, with a specific focus on social media, PFM and online advertising. Meanwhile, the more traditional aspects of bank marketing — TV/radio spots, physical branches and even print ads — continue to hold steady ground.

You can review the full results of The Financial Brand’s study in detail below. There is also a companion piece to this article,“What’s The Single Biggest Financial Marketing Issue In 2012?“ highlighting answers to the survey’s only open-ended question.

Special thanks go out to all those who participated in the survey. These folks appreciate the value of collective insight — that you can learn a lot by contributing a little. The Financial Brand also extends a big thank you Jim Marous, Senior Marketing Director with Harland Clarke and publisher of Bank Marketing Strategy, for his logistical and marketing support that contributed so much to the success of this survey. You can read Jim’s take on the survey here at his blog. Thanks go out to the good people at ACTON Marketing as well, who helped recruit survey participants.

Breakdown of Participants

The survey was completed by 228 total participants, including 84 banks, 30 community banks and 104 credit unions. 82% of respondents worked in a marketing capacity. Financial institutions in all asset classes were well-represented — 15 responses came from those with over $100 billion in assets, while 57 responses came from those with less than $100 million in assets.

Biggest Marketing Challenges in 2012

What do financial marketers feel is holding them back? Topping the list in 2012, half blame insufficient budgets and manpower. It is perhaps a bit ironic that financial marketers feel they are (#1) inadequately funded and understaffed considering that they struggle with measuring and proving the impact of their efforts (#2 on the list).

Many of the challenges facing financial marketing executives involve other departments, particularly  I.T., sales/operations and HR. In order for bank and credit union marketers to succeed, they need forge closer ties with these departments in 2012 and beyond. An isolated marketing department can only achieve so much.

It is simply stunning that only 9% of financial marketers see consumers’ lack of trust in the banking industry as a significant marketing challenge in 2012. (Try telling that to BofA.)

Reality Check: For consumers, their economic meltdown is far from over and banks are still to blame.

Changes to Marketing Budget in 2012

When asked how their financial institution’s marketing budget will change in 2012, 45% said it would increase, 12% anticipated a decrease, while 39% said it would stay about the same. The Financial Brand has frequently noted that marketing budgets at banks and credit unions should equate to approximately 0.1% of assets — a $1 billion financial institution should have a marketing budget around $1 million.

Top 3 Marketing Priorities

For this question, respondents were asked to rank their top three marketing priorities over the next 12-24 months. The data in the table signifies the number of respondents who ranked that priority either a #1, #2 or #3 on their list. The majority of financial institutions see cross-selling and loan growth as critical to their success in 2012.

If banks and credit unions want to deepen relationships, you’d think they see value in retaining those relationship, but they paradoxically put “customer/member retention” at the bottom of their priorities.

Reality Check: It may be easier to sell to an existing customer than to find a new one, but you can’t cross-sell customers/members (#1 in the list) that you don’t retain (#10).

Most Important Products & Services

In the survey, this question presented respondents with a randomized list of financial products and services, asking them to check those that their bank/credit union will concentrate on promoting most heavily in the next 12-24 months. Not surprisingly, lending products such as home loans, auto loans and credit cards top the list.

Most Important Marketing Channels

Despite many predictions declaring that traditional media is dead, roughly half of all bank and credit union marketers assert that print, TV, radio and outdoor advertising will have about the same importance in 2012 as it did last year. However, financial marketers also say that online advertising, social media and PFM tools will be growing in importance over the next 12 months. This data suggests that future of bank and credit union marketing will shift to the internet, but old habits die hard. It’s also worth noting the increase in significance of data-driven initiatives such as onboarding, database/matrix marketing, CRM systems and direct mail.

Utilization of Marketing Vendors & Suppliers

Roughly two-thirds of banks and credit unions utilize the services of an outside ad agency or design firm. A similar number turn to web developers for their online needs, while nearly 3-in-4 use a production company for their TV and radio spots. Only about a quarter of financial institutions utilize a third-party vendor to help them in areas like public relations, social media and financial education.

Primary Tools Used to Measure Branding and Marketing

Anyone who works in management — especially those in marketing — knows how hard it can be to correlate advertising and branding with results. When you look at the tools financial marketers are using in 2012 to assess and measure the success of their efforts, you see the usual suspects, mostly metrics that gauge the overall health and performance of a financial institution. But what’s startling is the number of bank and credit union marketers that don’t look at these things. Nearly a third (28%) don’t view marketing activities through the lens of customer acquisition. One in three don’t incorporate customer feedback. Three in five don’t factor attrition/churn rates.

Changes in Size of Branch Network

Pundits have been predicting the demise of branches since the mid 90s, but (for now) banks and credit unions seem reluctant to accept this. Rather than close branches, 42% say they are planning to open more locations in 2012, while nearly half say the size of their branch network will not shrink and at least stay the same. Only 6% of financial institutions say they intend to close any branches in 2012.

Utilization of Online Marketing Tools

When The Financial Brand conducted a similar study back in 2010, only 69% of banks and credit unions said they utilized email, but that number increased 10% in 2012. Similarly, 68% say they now pay for online banner ads vs. only 54% who said they did so in 2010 — an increase of 14 percentage points. Those pursuing an SEO strategy grew by 13 percentage points. But it was ads in eStatements that saw the most growth, moving from 44% in 2010 to 63% in 2012 (up 19 points). Fewer financial institutions say they are using microsites in 2012 (52% vs. 38%), signalling a significant slowdown in this once-popular internet marketing approach.

Utilization of Social Media Tools

Two in five financial institutions either have a blog today or plan to soon. Three in four use Facebook, making it the dominant social channel for banks and credit unions. Just about half are using the other three major social platforms: Twitter (54%), YouTube (49%) and Linkedn (48%).

In an August 2010 study, only 46% of financial institutions were using Facebook. 35% were using Twitter, and 25% were using YouTube. In both the 2010 and 2012 surveys, the same number of banks and credit unions said they had a blog (18%). Financial institutions utilizing an online discussion forum dropped by a quarter, down to 6%.

Staff Time Spent on Social Media

When asked how many staff hours are applied to social media every week, a staggering 40% of banks and credit unions say only 1-5 hours. And financial institutions wonder why they don’t get more out of it? There is practically nothing in marketing worth doing that only takes 1-5 hours per week — and that’s especially true with social media. You’re going to get out of it what you put into it. Little investment = little/no return.

When Was the Last Major Website Redesign?

The Financial Brand looks at hundreds upon hundreds of bank and credit union websites. Based on what we see, it’s hard to believe that nearly one in three financial institutions have undertaken a major redesign in the last year, or that two-thirds of banking websites have been refreshed within the last 2-3 years. There are still many websites in the financial industry that look dated (e.g., more than five years old).

Do You Have Formal Brand Guidelines?

When asked if their financial institution currently has a formal, written set of brand guidelines, 53% said yes, although it’s likely that many of these respondents have only a set of graphic design standards rather than a broader brand manual applicable to all employees. One in five financial institutions don’t have brand guidelines of any kind, but an equal number intend to.

This article © 2012 by The Financial Brand and may not be reproduced.

Similar Articles:

• Banking Consumers Getting More Mobile and More Digital
• No ROI on Social Media? Here’s Why
• Social Media In Banking: Made In Heaven Or Marriage From Hell?
• CMO Study: Consumer Anxiety Straining Bank Marketing Communications