December 2018

A New Feature on LinkedIn That Your RMs are Probably Not Using

Event Networking With LinkedIn

Any relationship manager (RM) that has ever worked a conference knows how frustrating it is to try to track down that one prospect you have wanted to meet or catch up with. While you may have an attendee list, it is also equally frustrating to know who is in the room. This is where LinkedIn comes in with a feature that can revolutionize how you network and get the most out of any given marketing event. In this article, we show you how to leverage the technology to make you the smartest banker in the room.

 

How To Use Rewards At Your Bank To Incent Behavior

Increasing Promotion Effectiveness

Banks often run promotions or “behavioral campaigns” to elicit a certain action. The most common is to get a customer to try a new product such as an interactive teller, mobile app or to enroll in a loyalty program. Other uses include educating a customer on a new procedure (such as account access during an integration) or to provide additional information (such as an email). For any bank looking to run such a program, the data below will open your eyes and provide insight into how your bank can be more effective.

 

Managing The Ends of Your Bank’s Strategic Plan

Achieving Strategic Alignment

Quick, what is the single most important item to focus on for your bank’s strategic success? What are the tactics that need to be done today to ensure that success? After that, what is your next strategic priority? Would most of your team answer the same way?  In strategic planning circles, it is called “working both ends of your plan,” and it highlights a weakness in many bank’s strategic processes. The average community bank spends 276 hours per year on putting together an update to their strategic plan, but the question is what value it adds to franchise value.

Defining And Executing On Your Bank’s Customer Service Promise

Improving Bank Customer Service

Almost all community bankers believe that they compete on the level of service that they provide to their customers – and this much is true.  However, many community bankers believe that they provide an above average level of service – and that is mathematically impossible since some banks must be average and some below average.  If you believe that your bank differentiates itself on the level of service that employees offer customers, then you must understand which

Why Your Bank Should Rent and Market Shared Office Space

Banking and Shared or Co-Working Space

Statistically, we call it the density function. The more potential clients that are located in close physical proximity to each other, the higher the probability that each will become a client of your bank. Consider that during college, a time in your life was you likely had a high density of people around you, at any given moment, 20 people could randomly show up to your apartment or house. Sometimes you would be asleep only to wake up to find a small party in your living room without so much as an invitation.

How Does Your Bank’s Marketing Goals Match Up To This Data?

Setting Marketing Objectives For 2019

While many banks do a good job at marketing, few formally state their objectives each year and fewer still take the time to align them with management desires. This could be a mistake as bank marketers are coming under increasing pressure to be held more accountable and to measure their return. Therefore, it is more important than ever to have alignment as to maximize the marketing effort.  In this article, we look at recent data to compare what management wants out of marketing and what marketing thinks management wants.

Using Forward Loan Commitments To Differentiate Your Bank

Innovative Lending Products

There are vast opportunities for community banks to differentiate themselves from their competition and create substantial value-add. One technique that we and other banks are having success with is the use of forward commercial loan commitments. This is a structure where your bank locks in loan terms that may start in the future. Forward periods range up to 24 months and average about 13 months.

This Is Why It Is Hard For Your Bank To Come Up With Creative Innovation or Strategy

Preventing The Vanilla Effect

It is fairly common for a bank to want to be more innovative or take on a new strategic direction and the first thing they do is form a committee. They then decide who should be on that committee and in the desire to be all-inclusive, management invites each department head and maybe a board member or two. The thinking is that this structure will ensure the greatest number of ideas and that those ideas will be vetted. You know what happens? A great number of ideas, good vetting but very little innovation.

10 Industries More Profitable For Banks Than Homeowners Associations

Growing Deposits and Fees

According to the Community Association Institute, approximately 21% of Americans live in common-interest communities. For banks, particularly those that are in FL, CA, TX, IL, NC, NY, MA and GA (in order) on a client acquisition-cost-to-cumulative-lifetime-value basis they are one of the best clients to have. The reason for this is that they are plentiful (over 342k of them in the U.S.) they have high deposit balances, and they generate large fees with their lock box activity.