Heart of the Matter

From Emily McCormick

13 May 2013
2 Comments

What Can Banks Learn from the Waffle Taco?

Taco Bell is testing a waffle taco, a product (I will not call it food) that gives me the creeps. While it might be your idea of a good breakfast, the thought of mystery sausage wrapped in a waffle from Taco Bell is just wrong.

Cleverly so.

This is a country that treats the annual return of the McRib like a celebration. College and high school kids will line up in droves for this. Based on the wild success of the Doritos Locos Taco, Taco Bell could have another hit on its hands.

The Taco Bell Takeover

Infographic courtesy of HackCollege.com.

So, what can bankers learn from the waffle taco? Find a way to uniquely deliver what your customers want. Until last year, Taco Bell didn’t even serve breakfast, and in reality, they’re not delivering anything truly different than other fast food chains. Who doesn’t serve a breakfast burrito? And the concept of a waffle taco isn’t really all that innovative. Is there anything more traditional than a waffle, sausage and eggs? Where Taco Bell is turning the breakfast concept on its head is in delivery – turning the waffle into a “taco”  shell.

“You must think differently and take advantage of technology and your unique market position.“

Well-spoken words from Customer Bank CEO & chairman Jay Sidhu at Bank Director’s recent Growth Conference. How can your bank uniquely deliver what your customers need?

Related:

Dan Latimore of Celent reveals how to make your bank more customer-centric.

How profitable is the average checking account?

Posted in Banking, business philosophy, Financial Marketing, Marketing and tagged , ,
07 May 2013

Banks Pay More Per Click

From Wordstream, a search marketing firm:

The most expensive niche groups paying for the most costly keywords are industries with very high lifetime customer value; the most costly AdWords keywords exist in industries where the customer pay-off is considerably high. Ultimately, the amount of money insurance companies get from an individual signing up for insurance with them makes high cost per click rates worth the investment, even at $54 a click.

Where Does Google Make Its Money? [ infographic ]

© 2011
Posted in bank technology, Banking, Financial Marketing, Marketing | Leave a Comment
23 Apr 2013

Big Banks Close in on Service

happyhappyhappyLast week JD Power released its 2013 U.S. Retail Banking Satisfaction Study. I think one of the biggest takeaways – highlighted in the press release – is the fact that, while community banks still lead in satisfaction, big, TBTF banks are closing the gap. In the Midwest, Chase led the rankings.

Not surprisingly, mobile banking usage continues to climb, up 6 percentage points from 2012. While mobile banking may not be the choice of the majority of customers – JD Power found a usage rate of just 17 percent – mobile isn’t going away.

Community bankers often cite that the level of service they provide sets them apart. With big banks making gains in customer satisfaction, combined with a firm grasp on the technology that customers increasingly want, should community banks worry?

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I’m thrilled to announce that the results of the 2013 Risk Practices Survey appear in the current issue of Bank Director, out now. You’ll also find Bank Director’s inaugural Growth Leaders Ranking.

For more information on Bank Director’s research, I encourage you to visit the research section at BankDirector.com.

Posted in Community Banks, Financial Marketing and tagged , , , , | Leave a Comment
15 Feb 2013

The Times They Are A-(Rapidly)-Changin’

Yuppie80sCellWhile in Arizona, I had a chance to lunch with Mika Moser, SVP and digital strategist at Bank Director. As two women north of 29, we enjoyed reminiscing about just how far technology has come. You see, when we were young – other than walking to school uphill and in the snow (both ways) – cell phones were physically huge (and firmly in the hands of businessmen and the wealthy). Want to stay in touch with a friend out-of-state? You had two choices: 1. Make a long distance call, which cost money, or 2. Write a letter,  address it, put a $0.25 stamp on it, and mail it.

We looked back on the Prodigy.net dial-up years, learning DOS in  school, and basically learning the ins-and-outs of email on the job. Oh how times have changed, and FAST.

So when I saw the following question in a LinkedIn discussion group, I couldn’t help but chuckle:

What Mobile Banking Feature do you think will be the most important to consumers in three years?
– Account Balances
– Remote Deposit Capture
– Peer-To-Peer Payments
– Bill Pay
– Personal Financial Management

It’s a valid question, and I’m not looking down my nose at it. Banks do need to focus priorities not only on where consumers are now, but where consumers will be (and arguably, where the banks will want the consumers to be).

Yet I did chuckle, because I think that frankly these won’t be just “important” to consumers – every single one of these will be EXPECTATIONS. Increasingly, consumers are expecting their mobile devices to do everything for them. Looking ahead 3 years, all of these will be a vital and expected part of mobile banking.

So if these features are all expected – what will become the “bells and whistles” that set your bank apart from the rest? I’d love to hear your thoughts.

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Pew Internet just released their Demographics of Social Media Users for 2012. Take a look.

Jim Marous offers advice on just how banks should approach big data.

Al Dominick’s got a new blog focused on banking – About That Ratio. He’ll still be blogging at DCSpring21.

Posted in bank technology, Banking, technology | Leave a Comment
25 Jan 2013

A warmer opinion on banking?

ArizonaPalmTreesI recently had the pleasure to speak with a few bank general counsel and experts in the industry about a side of Dodd-Frank we typically don’t focus on: the good side. Yes, Dodd-Frank, has a good side, though whether that good side outweighs the bad is up for debate. One benefit, pointed out by both Simon Fish, executive vice president and general counsel of BMO Financial Group, and Tom Feltner, director of financial services at the Consumer Federation of America, is that the myriad of rules that comprise Dodd-Frank can lead to increased consumer trust.

On the same theme, earlier this week Edelman published its 2012 Edelman Trust Barometer, exploring the ‘state of trust’ around the globe. Trust in financial services remains at the bottom of their list; but if you’re in the U.S., things are looking up. While trust in U.S. banking isn’t close to the 69% seen in 2008, it is UP over the last year – rising to 35% from a record low of 24% in 2011. It’s the best the industry has seen since Dodd-Frank was passed in 2010. Also of note – 50% of Americans “trust banks to do what is right”  – another significant gain for the industry.

So does that mean that Dodd-Frank, in this aspect, is helping the industry? Are consumer opinions of the industry warming?

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I’m heading to sunny Arizona tomorrow, for Bank Director’s annual Acquire or Be Acquired conference, where M&A is a big focus. What are the expectations for bank M&A in 2013? Rick Childs of Crowe Horwath LLP highlights findings from our recent research.

What do you think of the FFIEC’s proposed guidance on social media? I’d love to hear your thoughts.

 

Posted in Banking, Banking PR and tagged , , | Leave a Comment
18 Jan 2013

Diversity of Thought

Extrovert-Introvert_o_130380I recently read Susan Cain’s Quiet: The Power of Introverts in a World That Can’t Stop Talking. I can’t recommend the book enough. Certainly it spoke to me as an introvert – it’s more typical for me to spend a Saturday night curled up with a good book – but the book also speaks on a deeper level of understanding how introverts and extroverts can differ, yet work together.

One theme I pulled from the book is that you need diversity of thought to run a successful business. Yes, you need big, vocal extroverts that can charm a crowd with their charisma and bravado. But you also need the cautious introvert quietly waving the red flag when you’re making a risky move.

American business tends to laud the extrovert: we love the brashness of mavericks like Richard Branson and Mark Cuban. However, Susan Cain, as quoted in this Time article, feels that the culture of the extrovert played into the financial crisis:

I don’t want to be too simplistic because obviously it was caused by many different factors. But I think one underappreciated role is the fact that Wall Street has such an extroverted culture and bold risk-taking. It doesn’t appeal to the type of person that is more cautious and pays attention to warning signs. What happened is that over the last few years, those types became more and more discredited because it seemed as if their warnings were false. There was one bull market after another. Even those who had doubts didn’t feel empowered to express them.

I can’t help but wonder how many introverts serve on boards – particularly risk committees – today. Yes, the world needs risk takers – but we also need those introverts quietly saying: “Hey, wait just a second. Should we take this risk?”

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The Bank Director team is looking towards our biggest event of the year – Acquired or Be Acquired! Al Dominick looks into growth options for banks as we approach the event.

What do you think of GoBank?

What works – and what doesn’t – on KickStarter.

 

Posted in business philosophy, general business and tagged , , , , , | Leave a Comment
14 Dec 2012

Can Big Data Go Small?

BigDataGrumpyThe term “BIG DATA” implies just that – data, and lots of it. Typically it’s thought to be held solely in the realm of large corporations – something more for Bank of America than for your local community bank.

Yesterday I attended a teleconference by Intuit, in advance of the release of their report “The New Data Democracy: How Big Data Will Revolutionize the Lives of Small Business and Consumers”, co-authored with Emergent Research. Their premise is that “Big Data” isn’t just for big business, and technology has created a data democracy that will level the playing field for small business.

Intuit predicts that small businesses will have fully embraced data on the cloud by 2020, using products already available like Amazon Web Services and Intuit’s QuickBooks Online, whose “Trending” feature anonymously aggregates customer data so small business can compare themselves to other, similar businesses across the country.

Another key takeaway? All this technology means that the customer is more empowered than ever before. Via social media, consumers literally have access to the data they need at their fingertips – for everything from finding the best deal on a coffee pot to finding the most-trusted bank for their financial needs.

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Pretty cool – the Intuit Loan Finder matches small businesses to banks.

As someone that strives to live a healthy lifestyle, I love this unique banking idea.

More bank M&A? Legal experts think we’ll see a slight bump in 2013.

Posted in general business, technology and tagged , , , | Leave a Comment
04 Dec 2012

Walmart in the Mortgage Race?

pinewoodcarsI blogged here not too long ago about Walmart’s Bluebird. The response from one banker when I shared that post within a LinkedIn group? Bankers don’t need to worry about Walmart. It isn’t competition for us.

With the results of a recent survey by Carlisle & Gallagher Consulting Group showing that ⅓ of Americans would be willing to go to Walmart for a home mortgage, I wonder. You know there’s a team at Walmart right now evaluating how they could offer mortgages, and what partnerships to build to make it happen. Walmart does offer small business loans via Sam’s Club stores, so a Walmart mortgage isn’t that far-fetched.

But it’s not just Walmart. 80% of those surveyed would consider a mortgage with a non-bank, period. Why the dissatisfaction? What’s frustrating consumers?

Three of the big reasons given come down to one very simple thing: COMMUNICATION.

56% of consumers believe the mortgage process is too slow. Can your bank responsibly speed things up for the customer? If not – are loan officers communicating with the customer so they know the bank’s on top of things?

32% find it difficult to communicate with their lender, and – I feel this is related – 31% are unable to track the status of their mortgage application. Communication difficulties with a lender should, I feel, be rare – yet a third of those surveyed cited just that frustration.

And – ouch! – 26% don’t trust their lender’s advice.

As stated in Carlisle & Gallagher’s press release: “Consumer attitude is driven by three things, price, service and trust,” said Doug Hautop, Senior Manager and Lending Practice lead for CG.

Do I think Walmart as a lender is anymore trustworthy – or prone to be a better communicator – than a bank? No. But Walmart or no, if trust continues to diminishes in banking, it looks like 80% of consumers don’t feel a need to rely on banks.

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Banks: Mobile Apps vs. Social Media

Video Banking: Folly or Foresight?

Posted in Banking and tagged , , , , , | Leave a Comment
28 Nov 2012
3 Comments

Big or Small, Data is Key

BIG DATA. It’s a hot topic these days. Jim Marous has an excellent piece over at The Financial Brand on the topic, and however you define “Big Data”, Jim makes a great point:

…understanding the value of data being created today allows a bank to understand their businesses, customers, channels and the marketplace dynamics, including new sales and service opportunities.

My thoughts? It all boils down to knowing your customers (and prospects). What is important to them? What products and services are a good fit? Data that resides in silos doesn’t provide you with that big picture view you need – you need to know how your bank touches your customer base to know how to best serve them. Without the right information, you can’t make the right decisions.

I wish I could find the piece to cite, but the other day I read an anecdote about one of the ultimate missed opportunities in customer service. A man is at a very nice hotel for a three night stay. First night he requests a wake-up call for the next morning. Would you like a newspaper tomorrow? Coffee? Wall Street Journal, and tea please. Second night: Would you like a newspaper tomorrow? Coffee? Wall Street Journal, and tea please. Third night: Would you like a newspaper tomorrow? Coffee? Wall Street Journal, and tea please. The hotel offered all these great little perks, but in having to request it each time, the “specialness”, the knowledge of who that customer is, is lost.

Data – big, small, or in-between – can help your bank know your customer – and treat them like you know them too.

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You’ll find another “Big Data” piece from Jeff Marsico here.

Buyers and sellers can’t agree on price in bank M&A. Results of the 2013 Bank Director/Crowe Horwath Bank M&A Survey.

Town & Country Bank of Springfield, IL has overhauled its image.

Posted in bank technology, Financial Marketing, Marketing and tagged , , ,
15 Nov 2012

More Power to the Consumer

Do you know how your customer base wants to interact with your bank?

Yesterday I attended the Bankerstuff webinar, “Branch Transformation: Positioning Your Branch Network for the Future”. Chris Gill, Jim Flannery, and Jason Wolf of Diebold Branch Transformation Advisory Services presented some fascinating information on consumer trends.

Consumer interactions are changing. Teller transactions should decline, and ATM transactions should remain flat, by 2015. Growth will be found in online and mobile transactions, with mobile growing from 5 billion transactions in 2010 to roughly 18 billion by 2015. Additionally, consumer expectations are shifting as they interact with retailers in a variety of industries. What can you learn from retailers? How do your customers interact with you – and how do they want to interact with you?

Consumers have a lot of choice. Within the banking industry we tend to focus on the fact that the number of banks is declining, so there’s not a lot of thought put to the fact that consumers have literally thousands of banks to choose from – and that doesn’t even include the “non-bank” financial products on the market, like Bluebird. Diebold Branch Transformation Advisory Services found that 64% of consumers select a financial services provider based on the brand’s reputation. How are you strengthening your brand?

The branch isn’t dead.

  • 67% of consumers still prefer to go to the branch to make a deposit.
  • 53% prefer the branch for problem resolution.
  • 73% want to open an account, and 67% want to apply for a loan, in a branch.

The trend in the industry – the call for branch transformation – tends to focus on having a more specialized staff, with a shift in the branch from a transactional center to a service & sales hub. Banks may have to guide those consumers that still want to use the branch for transactional matters, like deposits, in order to create a more profitable branch system. Offering the right mix of branch, mobile, and online banking will help lead these consumers to choices that could be more convenient and better meet their needs – and help the branch become more streamlined and profitable.

Keep an eye on the young ‘uns. Gen Y’s and Millenials will hold the most spending power by 2017, and will conduct 40% of transactions. While only 33% of consumers consider mobile banking important when choosing a financial provide, 49% of Gen Y consumers, and 39% of Gen Z, do. But don’t discount the branch: 56% of Gen Z and 58% of Gen Y still consider the number and location of branches when choosing a bank. Where will these customers transact with you? Where will the relationship be? Are you offering the right mix of web, mobile, and branch?

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PwC Financial Services Managing Director, Nate Fisher, highlights how banks can align their pricing structure by using data from customer preferences.

Mike Branton of StrategyCorps shares how to put the retail back in retail checking.

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