Banker To Banker

The Perfect Bank Customer Appreciation Event

Bank Customer Appreciation Events

This week, we spoke on the future of business at one of the best bank customer events we have attended. CTBC Bank ($2.3B, CA) put on a stellar show and today we break down the events elements that will give you some ideas for your next customer “thank you” lunch. No matter what your budget or bank asset size, the goal is to create an event that is focused on the customer, but subtly highlights the achievements and capabilities of the bank.

 

Here is the checklist:

 

How Lean Six Sigma Can Help Your Bank

Bank Six Sigma

When we tell banks they need to get to a 35% efficiency ratio to be competitive in the future they look at us like we are crazier than an outhouse rat. Let’s set the branch debate aside (the largest functional cost area) as that is basically a philosophical argument. Let’s just look at your next largest functional cost – loan processing. We get challenged all the time by banks telling us they are “already at full capacity” and “we are already lean.” We point out that there is a difference between being at full capacity and being at optimal productivity.

The Most Profitable Designed Account In Banking

Bank Account Design and Profitability

Banks computing lifetime value of customers know that there are six components: 1) Cost to acquire; 2) Revenue/cost savings (volume and pricing); 3) Cost to service; 4) Relationship life; 5) Interest rate sensitivity; and, 6) Propensity to generate other business (referrals, related accounts, new product uptake, etc.). A customer represents a stream of cash flow and by looking at the revenue generated; the cost of the account and then discounting all that back over the expected life, banks can derive the customers expected lifetime value.

 

Your Bank Could Offer A Spotted Dick Digital Coupon

Bank Innovation and Customer Engagement

One thing that did not make it into our 2014 Banker Gift Guide that we feel a public service need to tell you about is the limited availability of Spotted Dick (Amazon $19.95). In case you are unfamiliar with the item, Spotted Dick is a traditional, British pudding made with golden syrup and raisins to be served with custard, love and a dose of humor.  If you normally don’t associate culinary delights from England, a can or anything called Spotted Dick, we understand, but part of the beauty of this blog is that it expands your horizons.

 

Our 2015 Holiday Gift Guide For You And Your Clients

2015 Banker Gift Guide Content Marketing Template

It is hard to tickle the cockles of a banker’s heart with a holiday gift mostly because most bankers don’t know where the cockles of their heart are. Contrary to what the press might have everyone believe, we do have them and the reality is they are outsized. Banker’s, as a generalization, are among the nicest, most caring, patriotic and honest as you will find in any industry. This year, as we can personally attest, bankers worked hard putting the industry back on solid footing and we want to give every reader a gift.

 

How Your Bank Might Be Missing The American Value Creation Hustle

Bank Compensation

We recently visited Australia in order to experience the culture, domestic beers and visit bank branches (and not necessarily in that order).  On the 15-hour plane ride to Sydney we had the luxury of catching up on movies one of which was “American Hustle.”  The 2013 crime drama is a good depiction of ambition and the pursuit of profit – ironically, a couple things we found lacking in Australia.

 

5 Critical Discussions Bank Boards Should Be Having In 2015

Bank Board Governance

2015 is poised to be a critical time for banks. Changing interest rates, credit spreads and industry economics add up to an environment where boards can really make a difference in a bank’s future. Here are five areas that are often overlooked, but are conversations critical to have in the name of good corporate governance:

 

Efficiency and Cost Structure

 

Why Using Budget Goals For Compensation Is Hurting Your Bank

Bank Budgeting Compensation

It is an age old tradition in banking that management firsts asks the business lines for their budgets and then takes those budgetary estimates and turns them into revenue and/or profit targets for the sake of compensation. While having sales goals is better than not having goals, basing the goals off budget hurts the budgetary process and results in sub-optimal sales incentive response to drive behavior. Let’s look at what happens.

 

The Problem

SmartBiz Can Change Your Bank

Smart Biz SBA Automated lending

If you are looking for a new product to offer to generate fees, deposits and new customers, you should be the bank in your area that carries the SmartBiz SBA application. SmartBiz is a complete SBA loan web application that banks can co-brand or private label to allow small business customers the ability to apply for, and close, SBA 7(a) loans under the Small Loan Advantage Program. Qualification can occur in as little as five minutes and funding can occur in as little as seven days.

10 Bank Marketing Trends For 2015

Bank Marketing

Bank marketing used to consist of some in-branch brochures, print ads and a couple events per year. Now, it is about social media, shared experiences and interactive digital engagement. Given the increase in earnings at banks and the pent up capital expenditure demand at many businesses, banks are primed to boost their marketing efforts like never before. 2015 is the year the banks get savvy about their use of mobile channels, content marketing and personalization.

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