December 2019

How To Use NPV for Loans and Get Our Free NPV Calculator

RELATIONSHIP PROFITABILITY
RELATIONSHIP PROFITABILITY

We were recently working to close a commercial loan when the lender officer paused the closing.  He did not want his bank to spend legal fees to clarify some tax-transfer issues (costs which the borrower also refused to cover).  The legal bill would be between $2 and $3k.  We asked the lending officer to calculate the legal costs versus the loan’s net present value (NPV) of income – the lender gave us a puzzled look.  We quickly calculated the lifetime income of the loan versus the legal fees for the lender, and the lender proceeded to close the loan within two days.

Should Your Bank Pursue A Single Mobile App or Multiple App Strategy?

MOBILE BANKING STRATEGY
MOBILE BANKING STRATEGY

In your strategic planning, one decision that needs to come up as you grow towards $1B in total assets is if your bank will have one mobile banking app or multiple apps. If your bank has not proactively decided, then chances are you are either not looking far enough in the future or not being active enough in guiding your bank’s technology architecture.

Here is the Data on Bank Customer Problem Resolution

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.

 

How Your Customers Want to Communicate With Your Bank

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.

 

The Irishman’s Guide To Bank Sales and Marketing

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.

How To Position Loans For the Debt Averse

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.