What makes a good banker is the ability to think in linear fashion. What makes a bad marketer is the ability to think in linear fashion. For hundreds of years, banks think about acquiring customers in methodical progression – one client at a time. While a commendable and stable process, that thinking is in part why many banks are running in place gaining two customers and losing one. It doesn’t have to be that way and, in fact, it might be time to take a lesson from technology companies because they have been growth hacking for decades.
Tag: Marketing Strategy
Last week, we broke down how a quantitative bank may look at credit in order to get more accurate on their credit grades. Most banks do this to make sure they have their loan loss reserve levels correct. However, the better reason to invest in your credit model is to win more loans from the competition, while not being adversely selected. Today, we look at one of those two strategies that a bank might employ to drive out their competition from the marketplace or at least protect themselves from being driven out of business.