Banker To Banker

Bank Customer Value Proposition

Every January, we advocate taking another look at your value proposition to see if there are any changes that need to be made.


Part of the problem with the current state of banking is that it is hard to tell one community bank from another. Because of this fact, loans, deposits and other bank services have largely turned into commoditized products. In some cases, bank margins are lower than they are for bottled water. If retailers can charge up to $6.00 for water, surely a bank can differentiate itself.


11 Things Bankers Shouldn't Say

While bankers have rightly started to change the industry’s image from being old and stodgy to being hipper, we caution against swerving into dork-dom.  The other day we were in a meeting where a banker started “raising the roof” with the double open hand pumping gesture over his head because of getting a loan approved.  Unless you are working with Habitat for Humanity, no roofs should ever be raised in banking.


In case you didn't get it...


This is one of the more common fraud pattern for small dollar loans that was highlighted by Clarity at nonPrime101 but one that all account officers should be on the look out for. Note the opening and closing of multiple accounts and the cell phone number change. 


Fraud Pattern

Interest Rate Risk to Commercial Real Estate Lending

Given that rates are poised to move up in 2014, this could negatively impact commercial real estate (“CRE”) loan quality. Fortunately, rising rates create some offsetting forces that could help or hurt underwritten CRE loans. The net impact of these multiple forces is why bankers get paid the big bucks to take the risk.  To better understand these forces, we break this down into a quick interest rate risk primer for commercial real estate that we believe every lender should know.


Bank Pricing

In case you missed it, Chipotle’s already expensive burrito is going up in price again starting in January. What is going on? Are margin’s shrinking, costs going up? The answer to Chipotle's pricing power lies in the strength of their brand and it is a good lesson for banks.


Bank Email Marketing

We understand that there is a fine line between spam and marketing. However, banks dramatically underutilize email marketing to drive business. We highlighted a case study not too long ago where a couple simple reminders can help boost deposit balances and improve profitability.


Bank Marketing

A couple weeks ago we discussed Part I of the best tactics we learned for building a bank customer base over the holiday season. Traditionally, while the holiday season is one of the worst times to market, this campaign is designed to take advantage of bank customer behavior and put the odds back in your favor. Since growth is so difficult to come by these days, we are looking for every advantage we can get and this campaign starts the year off with forward momentum.


Thanksgiving Banking

Thanksgiving is a special time when we take a break from our hectic lives and make things even more hectic by trying to cook a four course meal, while pleasing family members and fighting holiday travel. It is a time to rediscover why, despite loving our family dearly, we are thankful we don’t live with them. It is also a time of honored traditions and to understand that for generations before you, going all the way back to the Pilgrims, half the family is going to be on your case for overcooking the turkey and half will be warning you against the evils of salmonella.

Bank Decision Making

Say what you will about the morals and politics of President Kennedy, but his administration did more for bank decision making than almost any other group of people. After a horrible set of decisions connected with the Bay of Pigs in 1961 Kennedy vowed never to make those mistakes again. As a result, he commissioned an “after action review” that was uncommon at the time, but is now standard procedure for the military, highlighting some key failure points in the decision making process of the operation.