Financial Marketing and Cross Selling Blog
What does “Best Banking Experience” mean to you?
I was reading the recent ABA Bank Marketing magazine and there was a section interviewing a marketing manager at a small community bank in Pennsylvania. One question asked was, “In your opinion, what is the biggest challenge marketers will face in the year ahead?” Her response, “Maintaining customer’s trust and belief that our bank will succeed and we will provide them with the best banking experience!”
As I read this statement it hit me that this simple statement holds a lot of weight. I started to think about my own banking experience. I’m of the Gen X group so I have a tendency to be an online banking advocate, which is helpful since my bank is based out of Texas and has zero branches or ATMs in the Boston, let alone the north Atlantic region. I can even cash my checks using the scanner here at work. I’m a frequent online billpayer as well. So you could say my banking experience is one of transactions.
But I have yet to buy my first home, get married, have kids or own a small business. So my needs don’t line up much further past the typical transaction based services provided by my bank.
But what about everyone else. What about those who are married, have kids and are homeowners. Do they also see their banking experience as transaction based? Since we grow up, like I, with an experience heavily weighed towards transactions, does this carry over into our... Read More >>
The future of financial advise and why banks are well positioned to be the leaders
In a recent American Banker article, “New Rules of Retirement Advice Get Mixed Reviews”, Lydell Bridgeford discusses the Department of Labor’s new regulation plans on how financial services firms that act as plan fiduciaries can provide investment advice to their plans participants.
The new regulations allow participants to receive investment advice through a computer model certified as unbiased. The idea is to create a regulatory environment where financial services firms could provide advice to plan participants in a way that doesn’t conflict with their own interests.
These new regulations were introduced back on January 21st but put on hold by the Obama administration to allow further review. The original launch date was set for March 23rd but it’s now set for May 23rd. Many suspect that senior Obama officials and Democratic senators are going to try and reverse some of the Bush-era regulations in the Pension Plan Act of 2006.
But according to Alan Vorchheimer, principal at Buck Consultants in New York, he’s not so sure these new regulations will help plan participants to have access to investment advice. He believes many fiduciary advisers will see the annual audits and compliance ensuring the advice being provide is unbiased as burdensome and won’t choose to provide such a computer system to participants.
How does this go in favor of banks? Simple, unlike plan providers, banks don’t care which product their customers eventually choose. There is no conflict of interest what so ever leaving the investment advice and education window wide open for banks to provide. And studies show that many consumers are more open to receiving messages from... Read More >>
The future of financial advice and why banks are well positioned to be the leaders
In a recent American Banker article, “New Rules of Retirement Advice Get Mixed Reviews”, Lydell Bridgeford discusses the Department of Labor’s new regulation plans on how financial services firms that act as plan fiduciaries can provide investment advice to their plans participants.
The new regulations allow participants to receive investment advice through a computer model certified as unbiased. The idea is to create a regulatory environment where financial services firms could provide advice to plan participants in a way that doesn’t conflict with their own interests.
These new regulations were introduced back on January 21st but put on hold by the Obama administration to allow further review. The original launch date was set for March 23rd but it’s now set for May 23rd. Many suspect that senior Obama officials and Democratic senators are going to try and reverse some of the Bush-era regulations in the Pension Plan Act of 2006.
But according to Alan Vorchheimer, principal at Buck Consultants in New York, he’s not so sure these new regulations will help plan participants to have access to investment advice. He believes many fiduciary advisers will see the annual audits and compliance ensuring the advice being provide is unbiased as burdensome and won’t choose to provide such a computer system to participants.
How does this go in favor of banks? Simple, unlike plan providers, banks don’t care which product their customers eventually choose. There is no conflict of interest what so ever leaving the investment advice and education window wide open for banks to provide. And studies show that many consumers are more open to receiving messages from... Read More >>
America’s financial literacy problem similar to cooking problem
Last Sunday I was awash with a bit of irony as I watched 60 minutes. As you know, the Fed Chairman held a rare interview with the press. Mr. Bernake said the Fed is aiming to be more transparent and this interview was a way of showing the public they’re serious.
But what sparked me to write this post today was not the interview with Mr. Bernake. It was the following segment on Alice Waters. Alice is a celebrity of sorts in the food industry. She is a pioneer of the “California Cuisine” which promotes locally grown food and organic ingredients. In this segment they highlight her goal to install local produce gardens and cooking classes into our schooling system. She’s even pushing for the White House to build the first ever vegetable garden on the lawn. The irony behind these two segments being back to back is the striking similarities between the financial literacy crisis we face today and the food movement struggle that we’ve been faced with for ages.
Watch beginning of this segment:
Banks Need an Image Fix – Now
Sparked by a recent article in the New York Times Business Section, our president, Stewart Rose, recently wrote a one page brief. A full white paper will be available to help banks take the next steps in fixing their image.
“Banks Need an Image Fix – Now”
It’s not just the largest banks that are being painted with an image of excess and greed. That picture of bankers is permeating into the world of community banks as well. A February 5th 2009 article on the front page of the business section of The New York Times cites, “It’s not just big banks like Citigroup. Small and midsize banks lavish perks on their executives, too, and often sweeten salaries and bonuses with fringe benefits.” The article goes on to mention what it considers excesses at several banks that took TARP funds, including, Bank of the Ozarks and Great Southern Bancorp. TARP funds or not, the media is bringing pay and perks to the attention of shareholders and, perhaps more importantly, customers. No matter what the justification, banks are on the defense. The CEO is in a glass house.
Banks need to move quickly to get their own message out there before the damage gets worse. The question is – what positive message should banks convey? What message will boost their image in today’s economic crisis? Take a close look at what the American consumer wants most today – answers. Their confidence level is at an all time low. They have been turned upside down by this economic calamity. Facing the dramatic erosion of their retirement assets, the plummeting value of their homes, and the increasing uncertainty of their jobs, they are scared and confused and looking for... Read More >>
Creating a Service Oriented Sales Culture
In a recent GonzoBanker newsletter, Steve Williams makes the case that sales culture in banks is dead and a new chapter of sales culture is about to begin with the hope that banks have the chance to get it right this time.
In this well written piece, he states, “Across the country, many banks have 10+ years of effort on sales culture without significant improvement in results, but fail to question if they are even building the right mouse trap.” He challenges banks to develop a new type of sales culture built by creating value for customers. In other words, provide a service that customers find valuable that, at the same time, initiates dialogues and creates sales.
What kind of service will do this for banks? To find the answer, you only need to look at what customers are facing today. Customers are scared. For many, the bottom has fallen out of their retirement savings. They are fearful of losing their job. They feel they have no place to turn for answers. The world as they knew it has changed.
And the world too has changed for bankers. In many cases – trust – the backbone of the customer relationship – has eroded. For banks to acquire and retain customers today they need to focus more and more on the value customers see in their bank relationship. The new customer experience needs to go beyond an array of product offerings.
To build strong relationships, banks... Read More >>
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