Banks Are Upbeat—Really!
Denver — I’m on the floor of the American Bankers Association (ABA) Marketing tradeshow, and the outlook here is positive.
That’s right—I said positive! Why?
While many of the large banks and investment banks are taking it on the chin with their credit and risk exposures, smaller banks smell blood. There’s market share to be had—share they have been consistently losing over the past several years as nationals and super-regionals rolled out web services and captured wallet share through mortgages, loans and other offerings.
Clearly, the time for small and community banks is now. Consumers need banking, and where better to turn than to your old, trusted friend—your neighborhood community bank…the one where the mortgage officer is your neighbor and your kids go to school together…where he or she knows your situation and calls you by name.
A few observations:
• The word on the floor is marketing. Build out web services. Leverage the online channel. Recent studies show 54% of consumers say online service capabilities are the most important factor in choosing a bank these days. Leading the charge is Generation Y, the 77 million Americans born 1977 and 1997. Expected growth of online banking with this group will top 136% to a whopping 66 million users by 2011.
• It’s time to position for future growth. Loyalty is key. Account holders who pay bills online are proven to hold more in deposits, and they’re less likely to move money to another institution. Wallet share is digital, and your bank can enjoy the critical mass of scale in this arena while actually saving money due to fewer touches per transaction.
• You must make it easier to conduct transactions. Also make it easier to understand your offerings through education, marketing and content.
Now, where’s that damn Easy Button?
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