January 2019

Why You Should Tidy Up Your Bank Products

Kondo-izing Your Bank

After a bestselling book and new Netflix special, Marie Kondo has tens of millions of people around the world organizing their homes and businesses. The key to the methodology is not minimalism but mindfulness. It is asking yourself - does this procession “spark joy”? If the answer is yes, you neatly put a trifold in it and put it in your drawer or closet in such a way that you can see it. If the answer is no, you thank the object for its years of service and then promptly donate or trash it. Banks should do the same thing.

 

Curated Banking: How Rebundling Could Impact Your Future

The Future of Banking

Years ago, you went to the record store to purchase an album of music. It was curated by the artist, and maybe you liked two or three songs (unless it was Michael Jackson). In 2003, Apple Music was launched, and it soon became popular to purchase individual songs for a mere $0.99 each. However, it took work figuring out which songs to purchase and so by 2015; more people streamed music than downloaded songs. Now you go to YouTube, Spotify, Pandora, SoundCloud, Google or Amazon and simply listen to either their curated playlist or choose one from your friends.

Learning from Other Bank’s Commitment Letter Mistakes

Better Term Sheet Practices

One of the best ways to become a better banker is to pay attention to your competition and analyze their strengths and weaknesses.  We pay particular attention to term sheets and commitment letters from other banks to learn what other banks are doing well and where they make mistakes.  We intend to capitalize on competitors’ weaknesses and to learn to address and respond to other banks’ strengths.  We recently reviewed a term sheet that we thought highlighted some in

Better Understanding Your Bank Competitors

Competitive Positioning

Knowing who your competition is, what they are offering, their delivery channels and service levels can help community banks differentiate their services and enhance their competitive advantage.  Understanding the competitive banking landscape helps community banks set proper pricing, effectively respond to rival marketing, and compete more effectively.  Analyzing the competition can also help a bank be realistic about which products it can sell and at what price.