“A bank is a place that will lend you money if you can prove that you don’t need it.“ – Bob Hope
This quote seems to sum up the last couple of years in the banking and financial services business. Since the financial meltdown of 2008, financial institutions have been struggling to find the right post-crisis recover strategy in light of new government regulations. The last couple of years have not seen big financial advertising, but remember financial institutions are not only in the business of keeping your money…but MAKING MONEY. As consumers become more comfortable with the economy, financial institutions are looking to boost revenues. This could be a good year for business development with financial institutions so keep your eyes on these trends in your market:
- Say Goodbye to Free Checking – Most larger banks began making broad changes to fees in 2010. The struggle for most banks will be to get this right, while not upsetting consumers. Many consumers may shop other types of financial institutions. Credit Unions, Insurance Companies and traditional investment firms may prove to be new options for “over-fee’d” consumers.
- Look for new product offerings - The last financial meltdown of the 80′s produced a dramatic overhaul in the mortgage business with a resulting new portfolio of mortgage product offerings. Ironically, many of these products produced the last crisis. Regardless, from adversity comes opportunity. Look for a new wave of product offerings to capture consumer dollars.
- Acquire right customers - Now more then ever, financial institutions are focused on finding those customers with which they can build a long term relationship. For example, it does no good to acquire a customer with a $100 savings account loaded with a lucrative incentive if the consumer takes the incentive and never makes another deposit. Many banks are using technology to evaluate product offerings to help grow business with existing customers that offer potential for opening the right types of accounts. How can you help introduce your customers, listeners, viewers, readers, etc.?
- Focus on customer experience - Many financial institutions have spent heavily on improving the consumer interaction with the bank as a retention tool. This includes employing staff at the branch level that can sell a wide range of products and services, which are recommended during routine banking transactions. Many financial institutions are investing in becoming the Financial Educator to consumers.
- Focus on local appeal - Some of the biggest winners over the last couple of years have been smaller regional banks and credit unions. This is an area where we’ve seen continued spending…even in the down economy. Smaller players can focus on the specific dynamics of their market. They often tend to be more visible at the grassroots level making them great partners with media.
Take the time to find the regional decision-makers for your market. Common titles include Regional Vice President, State President, Consumer/Retail Banking VP. Don’t overlook those decision-makers that focus on Small Businesses.
So while money may have been scarce the last few years, 2011 may be the year to invest your time in finding your share!
abrown@morrisonandabraham.com