On Friday night the Dodgers and the Padres were tied in the bottom of the 12th and San Diego had the bases loaded with one out. Left fielder Seth Smith was at bat so the Dodgers did something incredible – they utilized their data to optimize their defense. Since Smith bats left handed, has not exhibited much bat control/range (0-13 in the last 3 games and an extreme pull hitter) and was desperate just for a base hit to move a runner to score, the Dodgers calculated that if Smith got a hit it would be short and to right field.
Banker To Banker
There is a split between community bank managers on how to best manage loan portfolios in today’s environment. While some take a passive approach, others are attempting to rebalance the credit portfolio for today’s environment, while still others are attempting to rebalance the credit portfolio for tomorrow’s environment. Where your bank falls in this spectrum depends on your view on active bank portfolio management.
Over the past month, we received lots of questions about better defining what we mean when we talk customer satisfaction. Banks use predominately one or more of four key measures. If your bank prides itself on service then it should be tracking satisfaction in some fashion in order to improve. If not, you never really know that your main value proposition is any better or any worse than it was last year or is it any better than your competition.
Most banks think of marketing in terms of channel - print, digital, radio, in-branch collateral material and so on. While that is one way to think about it, the next time you talk marketing, figure out how much of your limited resources are going to these three functions: 1) New customer acquisition, 2) Retention and 3) Cross-sell. This purpose-driven approach has the advantage of keeping the objective in mind while providing a framework to measure objectives.
Chances are if you are like most banks you might price a 3, 5 or 10-year loan at the same spread. If it is a fixed rate loan, maybe you price it off the appropriate Treasury, swap or FHLB index, but that only takes into account interest rate risk. As can be seen in the accompanying graph, based off community bank loan historic performance, credit risk starts off very low the first couple years of a loan, only to ramp sharply up before it starts to plateau around year seven.
Last week we helped close on a loan where a community bank won a relationship away from Wells Fargo. This case study demonstrates that a rewarding borrower experience can be delivered under almost any circumstance.
First it started in China and then hit the US. You know it is a trend when something like this impacts banking! Coming in a range of colors, the “Face-kini” is the latest summer craze hitting the U.S. and offers the latest in high-spf protection. In China, the Face-kini became popular as a deep skin color is often associated with outdoor physical labor.
At CenterState, we, like many banks are undergoing a customer experience improvement initiative. This is our attempt to make customer service more than just talk and to move it into the realm of strategy. While we are not there yet, we are making progress and have started to work on key areas. One thing that helped us get moving is understanding the six steps to improving performance. For other banks going through the process, we wanted to present our roadmap.
When is the last time you updated your logo? Chances are you developed your bank’s logo long before really considering your current growth plan, customer targets, use on social media or application to digital advertising. While your logo may work well for your current customer base, banks now turn their attention to the historic wealth transfer that is on the verge of taking place and must decide on best ways to attract a younger demographic.
Any bank merger announcement comes with the discussion of people, a bank’s most valuable asset. When Bank A acquires Bank B, there is the risk that key staff from Bank B will defect. While both Bank A and Bank B want to retain those key staff, Bank C and D are in the wings waiting to pounce on opportunity. No matter if you are Bank A, B, C or D, there are powerful psychological and economic forces in play that should be understood and managed in order to achieve your goals.