Banker To Banker

Customer Experience

Assume for a second that your bank screws up and causes a problem. The customer comes in or calls to complain - Do you apologize? Of course, you do – but then what? For the most part, community banks are fantastic and solving problems and making customers happy. What comes after an apology for a bank is mostly natural. However, given the rise of data analytics, now there is starting to be a science. In this article, we explore what it quantitatively takes to not only restore customer satisfaction but to make it better than before.

 

Communication Channels

Since your bank's primary value proposition is service and you are likely striving for a superior customer experience, then it would make sense that the first stop you should make is to improve your ability to communicate with the customer. In this day and age, customers have more channels than ever to communicate with your bank. The issue is preference varies widely. In this article, we explore retail bank customer preferences and talk about some ramifications for the future.

 

Storytelling in Banking

Throw all the facts that you want at someone, and you won’t move them to a position anywhere near the effectiveness than if you can work the facts into a story. From the dawn of man, our brains have become hardwired to place facts in context, and a story helps get us that context in the most efficient manner possible. Recently seeing the Irishman, reminded us what a good story is all about. In this article, we layout our checklist of elements that we use to tell stories during our sales process, in marketing, and as we sit around a table to explain things to ourselves.

INCREASING LOAN SALES
INCREASING LOAN SALES

There are many reasons why some customers are more debt-averse than others.  Research has shown that millennials are particularly reluctant to take on debt and are also teaching their kids, Gen Z, to avoid borrowing.  However, lenders need to understand how to position their loan products and provide advice for when taking a loan makes good sense for the customer.

Bank Website Marketing
BANK WEBSITE MARKETING

While last week we focused on bank mobile app usage, in this article we take a look at how mobile and online usage compares to see what insights we can glean for bank marketing and customer experience management. Because your phone is always close-at-hand, mobile banking usage tends to be more stable and regular throughout the week and day. Mobile app banking usage tends to peak around lunch and stay steady until the late evening.

NEW PRODUCT DEVELOPMENT
NEW PRODUCT DEVELOPMENT

In past articles, we have talked at length about using agile methodology for application development, for technical product innovation, and for your risk processes. We are fans of forsaking the traditional “waterfall” approach for new products whenever possible and getting to marketing in a pilot program as quickly as possible so you can learn and iterate to success.

DIGITAL MARKETING
DIGITAL MARKETING

If you think the average American is on their phone throughout the day you are largely right. However, they may not be on your bank’s app. While the usage of the average app on your smartphone peaks at 8 pm at night, largely driven by social media, the average banking app peaks around lunchtime. In an attempt to better understand the banking customer, both retail and commercial, we charted the average banking app’s usage to uncover some actionable insights.

 

COMMERCIAL SEGMENTATION
COMMERCIAL SEGMENTATION

Much has been written about the merits of community banks developing banking expertise around specific verticals.  We recently worked with a bank that won the banking mandate for a family-run funeral home.  At first we were surprised that the term loan was 93% LTV.  But when we looked at the entire underwriting package and the borrower’s financials (showing 3.2X DSCR) we recognized the importance of understanding industry specifics and how the funeral industry might be a perfect fit for many community banks.

 

The Merits of Specializing

 

Money 20 20 Recap

Last week’s Money 20/20 conference in Las Vegas proved that it remains one of the best conferences for banks that are serious about innovation, particularly as it revolves around payments. The conference is big, the hallways are endless, everybody and their granddaughter is a speaker, the expo hall is ginormous, and the whole conference is almost unwieldy. However, despite these flaws, Money 20/20 is still a gathering that shapes our financial future. While the Libra folks were noticeably quiet and the regulators seemed less involved, there was still lots of action.

Commercial Lending Strategies
COMMERCIAL LENDING STRATEGIES

On October 30, 2019, the FOMC decided to lower the target range for the Fed Funds rate to 1.5% to 1.75%.  The decision was not unanimous, and two members voted not to lower the target range.   In the FOMC statement and at the post-meeting news conference, the committee’s communication was clear in that the future path of Fed Fund rate will be data-dependent, and the indication is that the “mid-cycle adjustment” is done.  The key takeaway is that rates may move up or rates may move down in the future depending on economic developments.  The question for many bankers and borrowers is how to v

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