About 70% of all men have worried about genetically programmed hair loss since the days of Julius Caesar (who incidentally had a serious comb over). As a man ages, somewhere around his early twenties, hair loss takes place and no amount of Rogain, head massages, Cayenne pepper rub or goose dropping treatment can replace it. Similar to Male Pattern Baldness, some banks are genetically programmed to lose younger customers. They start to lose them around the edges, in the middle and then the most profitable on top.
After meeting and demo-ing some 70+ companies at Finovate (including non-presenters), there is more of a gap that we alluded to yesterday. Yes, the technology presented was interesting and the show format perfectly efficient, but there are a couple more glaring holes outside of the lack of discourse around profitability and risk management plus the lack of innovation around handling the small to mid-sized commercial customer that we highlighted yesterday.
In banking, it takes six to twelve “touches” to a potential customer before you can convert them to a full blown customer. One of the best ways we have found of segmenting and qualifying a customer is to hold a webinar. The webinar is an efficient way to start discussing a topic with a wide number of customers that are just entering the sales funnel. While most webinars from community banks are product related, we have found success, and encourage other community banks, to hold webinars on topics where the bank can become a local thought leader.
As loan growth picks up at banks, we see more attention turning to gathering low cost, high duration deposits. One of the best ways to do this is through grabbing the operating account at businesses. One of the best ways to get the operating account is to offer an online, low cost set of payroll services. This is why the offering of online payroll services is picking up for community banks.