April 2018

An Effective Trick To Make Your Bank Marketing More Effective

Bank Marketing

We see this all the time; a beautifully produced piece of bank marketing that fails to provide a clear call-to-action (CTA). That is like sending a salesperson to a client’s door, have them make the sale and then walking away before getting the transaction. Look at most bank’s websites. They give great information but fail to provide any mechanism for the reader to take action. Bank brochures and ads are often the same way. In this article, we will talk about calls-to-action and the best way to create a sense of urgency.

 

Will Rising Rates Cause Our Next Recession?

The Next Recession in Banking

Some pundits and economists are sounding alarms that by increasing interest rates too fast or too high, the Federal Reserve might cause the next recession.  However, we believe that bankers should direct their concerns to other economic and credit developments – such as low cap rates, high LTVs, and dubious pro forma cash flows.  We believe that the likelihood of a Federal Reserve policy error causing the next recession is exceedingly low, and the cause and effect between short-term interest rates and recessions is not so obvious.

How To Use “Strategic Product Communication” In Banking

Better Customer Communication

A recent survey from the CFA Institute caught our attention on why wealth management clients leave. 47% of the respondents said they left because of the poor portfolio performance. That makes sense. But, do you know what the second highest reason for leaving your wealth manager was? Communication. 43% of the respondents left because of the lack of communication. That got us thinking about how we can improve communication with our commercial customers.

The $238k Wall Street Journal Prime Mistake

Last month, right after lunch, the borrower came into the bank to close his company’s owner-occupied commercial loan for $5mm – it happened to be March 21st. The borrower closed the loan, locked in a 4.50% rate for 10-years, shook hands, smiled and walked out the door. The Chief Lender and the CFO walked over to the business development officer and congratulated him on a job well done. High-fives ensued, and everyone was happy. Should they be? The Bank just lost $238k in one day, and the worst part is, no one knew the difference except the borrower.

Turbocharging Project Management Webinar Recording and eBook

Bank Project Management

One way to increase your efficiency ratio is to cut costs, but another way is to increase output. It is in the vein that our bank decided to add to our cost and hire a professional project management team to get more stuff done. It has worked like a dream as we now can take on more projects, get them done in less time and have a methodology to improve the process of project management.

Here is What Real Estate Investors Think About The CRE Market

CRE Risk

As we analyze commercial real estate (CRE) capital allocations this morning, we can’t help but draw similarities to last night’s second season opener of Westworld – in our opinion, one of the best television shows ever produced. A common rubric on the show is the Romeo and Juliet quote, “These violent delights have violent ends” and it fitting to any bank’s CRE analysis. As community banks, we can’t stay away from CRE, but we know it is dangerous at some point.

This Method is the Best of the Three Ways To Price a Loan

Better Loan Pricing

Loan pricing is both an art and a science. While there are three primary ways to price bank products, one methodology is consistently used by top performing banks. Since we talk and see the pricing at hundreds of banks each month about loan pricing and we monitor credit risk, cost and non-bank competition in every state, we have a unique vantage point to see what works and what doesn’t when it comes to banking profitable commercial customers.

How To Manage The Cadence of Your Bank Marketing

Determining Marketing Frequency

Let’s say you want to introduce a new product – online commercial account opening for example. Being the savvy bank marketer that you are, you already advised your team that you will need a $30,000 budget to hit the required reach and penetration that your product team desires. Now, as the product is getting ready for testing, you have to decide how best to spend the budget. Do you send it all at once, spend it over a quarter or spend it over a longer period? The answer lies in understanding your marketing cadence.

 

An Effective Negotiating Technique Our Bank Learned from the FBI

Bank Negotiation Techniques

It was 8:30 in the morning back in September of 1993 when the Brooklyn Chase branch was robbed by two masked gunmen. The security guard was hit across the head and locked in the men’s room, a teller was pistol-whipped, and the branch manager had a gun put in her mouth, the trigger was pulled, and luckily, the only thing that happened was a click. “Next one is real,” said the thug. “Now open the vault.” How this robbery was resolved sticks in our minds and is was one of the lessons that drove home our most valuable, and seemingly cheesy, negotiating technique.