September 2018

The 8 Virtual Functions You Need For Branch Transformation

A Branch Transformation Strategy

If you are a bank that believes in either the omnichannel or mobile-first view of the future, then you need a five-year roadmap to achieve the transformation. If you are a closely held bank that is $500mm in assets or below and do not have the need to grow, then it’s possible that you can skip this strategic step and take your chances. Other than that, not having a clear transformation roadmap within your strategic plan is asking to be sold at just slightly above book value.

Understanding Your Loan Competition To Sell More Effectively

Competitive Lending

To compete effectively, community banks need to understand who their competitors are; the products and services that competitors offer; plus, how the competition is positioning and selling these products.  Conducting competitor analysis allows banks to rank themselves in the industry, leverage competitive insights, discover trends and improve their product offering.  Unfortunately, many community banks do not have the resources to conduct a thorough competitor analysis.  We would like to share one recent pitch from a small regional bank on how they position and sell a novel prepayment provi

PLANNING FOR GROWTH: THE 6 WAYS TO GROW BANK EARNINGS

Strategy & Bank Growth

As your bank heads into strategic planning this year, it is likely that one of the first, and most important, questions to answer is  - What level of growth should the bank set as a target for next year?  While seemingly a simple question, the answer trips up many bankers. In fact, some bankers get it wrong by 180 degrees. In this article, we look at some factors to think about when deciding your growth targets.

 

Getting Asset Growth Directionally Correct

 

How To Calculate The Interest Sensitivity Of People, Products, Branches And Technology

Combining Rates and Strategy

Recently we had a meeting that few banks have. It was a rarity for us, but it was eye-opening for all that attended. It brought an important clarity about the future, a clarity that would be helpful for any bank to achieve, no matter what their size. This meeting was an asset-liability committee meeting (ALCO) of sorts, but it was also strategic.

This Concept of Preferred Habitat Theory Will Improve Bank Performance

Taking Advantage of the Yield Curve

Sometimes things are not as they appear.  Consider the classic optical illusion of the three-prong image below.  The prongs are confusing and it is hard to tell where one prong starts and stops. Combine this concept with “preferred habitat theory” that says that bankers prefer certain maturities or “natural habitats” over others. Preferred habitat theory explains why banks don’t make unhedged 30-year fixed rate loans. In this article, we look at how illusions and preference for natural habitats come together to often mislead bankers.

The Effectiveness of Bank Email Marketing – Deposit Example

When it comes to marketing bank products, email remains king. It is not only the preferred marketing channel of every age group, but it is the most effective as well. Of course, no one wants an irrelevant message that clogs up their day, so a bad email message also has the power to inspire the greatest backlash. In this article, we look at the data on email’s effectiveness and highlight ways banks can better hyper-personalize their message to take their email marketing to the next level.

 

How To Mess Up A Branch Experience

The Branch Customer Experience

We routinely open accounts at banks to assess the experience in an effort to improve our own performance. We recently opened two online accounts (one at a national bank and one at an online bank). Both account openings were fast (under 10 minutes), and the experience was pleasant. We then opened an account in a branch at the same national bank where we opened the online account.

How To Facilitate The Tactical Refinance To Increase Retention

Increasing Loan Portfolio Return

One of the easiest ways for community banks to increase profitability is to stem commercial loans from refinancing to a competitor.  Competition is intense, and community banks that develop a strategy to retain profitable clients can increase income substantially.  While most banks devote resources to marketing, sourcing, and booking new business, much less emphasis is placed on maximizing profitability on the existing loan portfolio by identifying and controlling customer loss (or refinancing risk).  We would like to share one specific strateg