BankMarketingCenter

I found the recent article in American Banker, "2023 tech trends banks can't ignore," a pretty interesting read.  It talks about a few of the challenges that banks face and some of the tech solutions out there that can help them address those challenges. Among many take-aways, this occurred to me:  It’s not so much tech trends that banks can’t ignore.  It’s their customers that are feeling ignored.

“With the cost-of-living crisis and general economic uncertainty” says the article, “many consumers want their banks to offer them more financial advice. A 5,000-person survey by Personetics uncovered that 51% of consumers want more advice on managing their money and 66% want proactive insights from their bank. But, sadly, 63% say they have not received any advice or communications from their institution about their financial stresses.”

Now, you might be thinking, “well, we’re a community bank, of course we offer financial advice and, of course, our customers know that.” And, to some extent, you’d be right. But, as you can see from the stats above, you’d be missing the mark by almost 40%; that’s a pretty significant number of customers. American Banker goes onto say that “sitting back and waiting for customers to find your financial advice content or proactively reach out to a financial advisor means they likely won't.” This missed opportunity to show your support for customers during tough times, and to provide them with personal money management guidance, is a tremendous (and costly) miss for those bankers who aren’t getting that message out to their customers. And here’s another eye-opening (and a bit frightening) statistic. A JD Power satisfaction survey revealed that 63% of customers won't switch banks… as long as their bank supports them during challenging economic times. And only 44% say their institution is offering that support. You might want to ask yourself: “Are 40% of our customers thinking that we simply don’t care?  

The article goes on to suggest the use of one of the self-serve appointment scheduling tools that are out there. And, I think that’s good advice. Being a “marketing guy,” however, I wonder if that’s enough. After all, simply because one offers a product or service doesn’t mean people will be interested in it… or even know about it, for that matter.  This is where a bit of bank marketing can really come in handy.

“When something is easy, clients are more likely to do it—and more facetime with them will give them the peace of mind they need to weather the storm with your institution,” the article tells us in conclusion.  And I couldn’t agree more.  Now, go make it easy for your customers by reaching out and telling them that you’re here for them in tough times.

About Bank Marketing Center 

Here at BankMarketingCenter.com, our goal is to help you with that topical, compelling communication with customers; the messaging — developed by banking industry marketing professionals, well trained in the thinking behind effective marketing communication — that will help you build trust, relationships, and revenue. In short, build your brand.  Like these bank marketing campaigns designed to help community banks tout the fact that they offer personalized, money management guidance.

To view our marketing creative, both print and digital – ranging from product and brand ads to social media and in branch signage – visit bankmarketingcenter.com.  You can also contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com.  As always, I welcome your thoughts on the subject.

As you all know, bankers are continually required to do more with less… and the management of their marketing programs is certainly no exception. Because BankMarketingCenter.com is a Florida Bankers Association endorsed partner, I recently had the pleasure of speaking with Brian Hickey, who you all know of course, as the FBA’s Director of Partner Relations and Associate Membership.  We talked about some of the trends in banking and how members can make the most of our partnership.

Brian: Thanks for meeting with me, Neal. Let me begin this conversation by giving our members a bit of background. Now, for those association members who are not familiar with the process, this is important; our selection of endorsed partners is an on-going one. In other words, once selected, a vendor doesn’t simply enjoy permanent endorsed vendor status. As new suppliers and technologies appear, we know that we must continually review these partners and potential opportunities, to remain assured that they are, in fact, the best organizations in their field. And subsequently, that members receive the best services in the industry.

As your state banking association, we feel that it is always important to help keep you, our partner banks, abreast of the trends, developments, and new opportunities that present themselves in this fast and ever-evolving industry.  We’re taking this opportunity to update you on developments in the area of marketing, brought to you here by Neal Reynolds, founder and president of one of our endorsed marketing partners, BankMarketingCenter.com.

Reynolds: First off, thank you Brian, for giving me the opportunity to address your association banks. We are committed to bringing the FBA banks the best in marketing messaging, which is so critical, especially with the many challenges bankers now face. A top challenge, of course, is that banks are continually being asked to do more — regulation is a good example — and resources are stretched thin. The competition for customers has become incredibly tough with fintechs constantly entering the marketplace. Consequently, smart marketing is more critical than ever.

Brian:  You mentioned that resources are stretched thin and I’m pretty sure that all of our member banks would agree. Tell me, how can your service help banks stay on top of that all-important function, marketing, without, perhaps, staffing an entire department or hiring an expensive outside firm?

Neal: Good question, Brian. For starters, our web-based marketing portal gives your banks the ability to produce professionally designed, bank-branded marketing materials in a matter of seconds. It puts the user in complete control of the ad production process, saving valuable time and money. Our design interface is super user friendly, so no design skill is required, which is huge. Users log in, select an ad that most closely meets their needs, and then customize it with their desired images, brand colors, and copy; simply by dragging and dropping.  And they have unlimited access to thousands of layouts and millions of Getty photos and images.

Brian: I get it. I’ve been in your portal and seen the campaigns.  It looks like you offer everything from digital signs, direct mail, statement stuffers and social media posts to ads, flyers, and brochures.  Basically, well, everything a bank needs to market their products and services, honor holidays, build their brand, celebrate their employees… all kinds of things.

Neal:  Very true, Brian. And you’re making a very important point about our marketing messaging.  The content on our portal has been created by people who know the business and this is really critical. We have a team of financial industry marketing professionals who are constantly researching financial industry trends, products, and services. Then, using decades of marketing experience in the financial services space — community banking, in particular — they develop and add new, customizable creative to our library of ads almost every day. This is the major difference between our service and some of the template-driven applications out there, such as Canva. Like everything in life, you get what you pay for. Programs like Canva don’t apply the highly sophisticated principles of marketing that we do at Bankmarketincenter.com.

Brian:  Can you talk a bit more about how it works?

Neal:  Sure. Our portal can also, if the user wants it to, automatically insert their institution’s logo, address, and phone numbers into their ads. The portal then facilitates proofing of the ad, automatically routing it along a pre-determined, pre-arranged compliance approval path. Another very useful feature, and one that many overlook the importance of, is that each user has easy access to their order history, enabling them to track all the marketing materials that are produced. This is a huge benefit if and when, in a compliance review, they’re asked by regulators for access to their marketing materials.  No other web-based messaging portal does this.

Brian:  You mentioned images.  Millions of them?

Neal: Yes, roughly 9 million and that includes videos as well. And your members can use any of them without concerning themselves about the usage rights. Here’s an example of what I’ve actually been seeing; banks promoting their mobile banking with an image of an iPhone. That doesn’t sound like a big deal but, well, Apple thinks it is. Their Trademark Guidelines tell you that “Only Apple and its authorized resellers and licensees may use the Apple Logo in advertising, promotional, and sales materials.” Needless to say, the last thing your bank needs is a Cease-and-Desist letter from Apple’s legal department. 

Brian:  Thanks very much for your time, Neal. This has been great… very informative stuff.

Neal:  Thank you, Brian, for giving me this opportunity. I hope it helps you banks better understand what we can do for them.

As I’m sure many of you do, I often check in with the ICBA to see what’s “in the wind” for community banks. Many of the banks with whom BankMarketingCenter.com has partnered do business with local farmers or what most small banks call their “farm families.” So, I found what I learned about what farmers face and the actions being taken by the federal government not just interesting, but very relevant to what I do as a bank marketer.

It also took me back to my own days growing up on a farm, a small farm in LaFayette, AL. We had hogs, horses, and 120 head of cows. I took part in clubs like 4-H and FFA (Future Farmers of America) and served as a member of the Livestock Judging Team. I know what hard work farming is. Believe me, cutting and baling hay in the Alabama heat is tough. I know the beating that sweaty hands will take repairing barbed wire fences in a sweltering Alabama August.  There’s the pain, too, of getting up before school, in winter darkness, to break the ice on the watering troughs. I know what it’s like, for instance, to plant seed and hope that it rains. That’s not just a matter of hard work… It's a matter of having faith, as well. Then, there was the worry that comes with running a small farm… my dad keeping track of the cost of feed, maintenance, and supplies, especially when the price of beef would drop. And, finally, yes, that’s me with my favorite steer after winning First Place in the State Showmanship competition.

So, you can understand why I take such an interest in all things farming… including the legislation around this important way of life. It’s that interest that led me to do a bit of research around the all-important Farm Bill. A recent article on the ICBA website, I learned, provides a pretty thorough overview of the industry and what the upcoming Farm Bill will mean for farm families.  And, subsequently, how that piece of legislation will affect the many farming communities that are served by small, local banks.

First, a bit of history. Why a Farm Bill and why is it important? Sure, there are economic reasons, but for me, there are other reasons, as well. Farming is a centuries-old “tradition,” if you will, and in many ways epitomizes those traits that we want to associate most with being Americans:  Generosity, a huge work ethic, determination, and a love of this land, to name just a few.  So, to me, anyway, there’s more at stake here than simply supporting an industry; it’s about supporting our rural American families, as well as a way of life that is deeply ingrained in who we are as a people and a nation.  And Thomas Jefferson would agree with me.  After all, it was Jefferson who said: "Cultivators of the earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its liberty and interests by the most lasting bands."

It was 1862 when President Lincoln signed legislation establishing the U.S. Department of Agriculture. He called it "the people's department" since, at that time, 90 percent of Americans were farmers. The first Farm Bill was enacted during the 1930s as part of the New Deal and had three main goals: Keep food prices fair for farmers and consumers, ensure an adequate food supply, and protect and sustain the country’s vital natural resources.

Needless to say, the economics (and politics) of our agriculture industry have gotten far more complex since the New Deal. The basic tenets, however, do remain the same and it is upon those basic tenets that the new Congress is currently working to build the 2023 Farm Bill. Farm bill provisions are designed, at least in part, to provide lenders and farm families with a long-term policy framework for business and planning purposes, along with money that will help farming communities to thrive.  

As stated in the ICBA article, “the 2023 farm bill should continue to provide essential assistance to the farm sector and to rural America,” and fortunately, the ICBA has been extremely involved, and vocal, in ensuring that farming families continue to receive the assistance, and protections, that they need, including but not limited to:

• A strong crop insurance program
• USDA farm loan guarantees with increased loan limits
• Continued community bank market access provided by Farmer Mac
• Assistance with the high costs associated with inflationary times
• Climate change programs that do not cause economic burdens
• Agricultural export programs that support the industry
• Funding for university-led agricultural research

In conclusion, I applaud the ICBA which, back in 2018, worked tirelessly to help secure the futures of our farming families and is doing the same great work now. I applaud, too, all of America’s community banks that do the absolute best they can to support their farm families. Do I have a bit of a personal interest in this, as well as a professional one? I certainly do and you can bet the farm on that.

About Bank Marketing Center 

Here at BankMarketingCenter.com, our goal is to help you with that topical, compelling communication with customers; the messaging — developed by banking industry marketing professionals, well trained in the thinking behind effective marketing communication — that will help you build trust, relationships, and revenue. In short, build your brand.  Like these campaigns designed to help community banks support their farming family customers.To view our marketing creative, both print and digital – ranging from product and brand ads to social media and in branch signage – visit bankmarketingcenter.com.  You can also contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com.  As always, I welcome your thoughts on the subject.

Despite the fact that “digital transformation” has been with the banking industry since around 2011 and the need to achieve it has – for a host of reasons – become a necessity over the past two years, many banks are still far from achieving their planned digitization model. In fact, according to a study developed through a partnership between Adobe and Microsoft and reported in a November 22 Forbes article, roughly half (49%) of the over 600 senior digital and technology executives surveyed said that “their restructuring of workflows remains incomplete or unsatisfactory,” and nearly two-thirds (65%) of CIOs said “they’re now re-evaluating workflows to achieve higher operational excellence.” Why the re-evaluation, especially since many banks have been in digitization mode for several years now? That re-evaluation, I think, is largely due to what I’ll call “the four C’s,” the primary headwinds that are slowing banks in their quest to achieve that operational excellence.

Granted, banks are feeling pressure from all around, but based on what I’ve been reading, these are the challenges, I believe, that are causing bankers the most sleepless nights:

• Cybercrime – ever more sophisticated threats
• Customer Experience – demanding, digitally-savvy consumers
• Compliance – an evolving regulatory landscape
• Competition - loosely regulated fintechs constantly entering the marketplace

Given all of the above, what banks desperately need at the moment, in a nutshell, is automation. As mentioned earlier, yes, nearly half of surveyed tech execs feel that “their restructuring of workflows remains incomplete or unsatisfactory.” The good news, though, is that the other half doesn’t feel that way. Indeed, many banks are already implementing innovative, agile, and powerful technologies – such as Artificial Intelligence and Machine Learning— driven solutions — and with them, discovering more efficient ways of working and addressing the challenges presented by the four “C’s”. And they're making progress despite the fact that many are working with legacy technologies — such as an aged core — that can make evolving one’s tech stack expensive, time-consuming, and disruptive.

Being a marketing guy, I always see challenges and solutions through a marketing lens. And, for this reason, I always view marketing as a bank’s most critical function. Not to say that the other “C’s” aren’t important. A customer experience that will earn and keep customers is certainly important.  So is the threat of cybercrime, along with what seems to be a regulatory minefield that gets continually difficult to navigate. But in my mind, fending off the competition is the most important of the C’s. Automation technologies can certainly help in these areas, and it can help in a huge way when it comes to a bank’s marketing function, as well.

What, exactly, is marketing automation?  Salesforce defines it this way: “In its most basic form, marketing automation is a set of tools designed to streamline and simplify some of the most time-consuming responsibilities of the modern marketing and sales roles. Automation is all about simplifying a business world that is growing far too complex, much too quickly.”

And what is one of the most costly, time-consuming functions of marketing? Creating the message.

Banks have a couple of options here. They can hire an outside firm, which can often be expensive and time consuming, i.e., “It would be quicker and easier if I did it myself!” They can maintain an internal marketing staff, which can be a challenge when banks are looking to maintain a slim headcount. Or, they can utilize some of the marketing automation technologies that are out there. Yes, there are any number of automation tools out there that can assist in functions such as targeting the right audiences, testing a marketing message, and supplying the key performance data that enables the marketer to refine a message based on customer engagement across any number of channels.

But, there’s one important function that most marketing automation platforms cannot address; and that’s the all-important process of developing a marketing message that is not only creative, but always relevant and engaging. And that’s where we can help, with a solution that blends the speed and ease of automation with the creative thinking of a team of financial industry marketing professionals. Now, your messaging can not only be developed quickly by an individual on staff (no design experience necessary), but also impact your audience, build your brand, and enhance your bottom line.

About Bank Marketing Center 

Here at BankMarketingCenter.com, our goal is to help you with that topical, compelling communication with customers; the messaging — developed by banking industry marketing professionals, well trained in the thinking behind effective marketing communication — that will help you build trust, relationships, and revenue. In short, build your brand. 

To view our marketing creative, both print and digital – ranging from product and brand ads to social media and in branch signage – visit bankmarketingcenter.com.  You can also contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com.  As always, I welcome your thoughts on the subject.