BankMarketingCenter

Like many of you, I frequently check in with The Financial Brand, as there’s always some piece of content of interest. I was just reading their recent article, BNPL’s Dark Side: Younger Consumers Face Credit Trouble Ahead when a term that I’d not heard in a while grabbed my attention.

“The Fed goes so far as to warn that a large share of BNPL users are 'financially fragile.'”

“Financially fragile.” Are you familiar with the phrase? According to Google, it's a phrase that economists use to describe people who would not be able to pull together $2,000 in cash within 30 days.

The Financial Brand article lays out some learnings of a Federal Reserve Bank of New York study of BNPL users:

• “Nearly one in three — 32.7% — had a credit score of less than 620, had had a credit application rejected, or had been delinquent on a loan in the past year.
• Only 42% of BNPL users said they could handle a financial shock by drawing on their savings and would not have to borrow to deal with the emergency. 
• The BNPL users who would need to borrow said it would be from friends and family or from banks or credit cards.
• 48% say their money situation is bad enough that they will never have the things they want in life.”

Just how many BNPL users are there out there? I’ve seen 360 million worldwide. I’ve also seen that Klarna, alone, has a user base of 147 million, and that 1 in 10 US consumers regularly use BNPL services at checkout. So, yes, we’re talking about a significant number of people.

Here’s what I’m thinking. You know what’s needed here?  A bit of good old-fashioned financial wellness training.

As a community bank, you play a critical role in local economies by serving as a pillar of support and trust for both your customers and your community. With so many individuals struggling with managing their money, don’t community banks have a responsibility (and an opportunity) to help these individuals improve their financial well-being? A great place to start is with the kind of money management training that can lead to a lifetime of financial wellness; the kind that you can offer … with the right tools.

According to BAI’s, “How banks can help customers with their finances,” a majority of banking customers in North America would consider switching banks for better money-management support and personalized advice. In order to keep their customers from switching, the article goes on to say, banks need to invest in the right tools and ensure they are providing tailored insights and recommendations that customers need, when they need them. While offering personalized financial wellness and money management education should always be high on a community bank’s “to do” list, it is especially critical for those customers who may be financially fragile.

Although most banks already provide digital money management tools, adoption and engagement rates are disappointingly low. According to a recent Forrester report, 88% of respondents say less than half of their customers actively use these tools. That is in part because many tools take a “one-size-fits-all” approach. They also require too many steps to gather insights. Even then, the capabilities fall short. 

Today, there are much better tools out there, tools that deliver personalized insights and recommendations. “A new generation of advanced money management tools that,” according to BAI, “provide actionable insights based on financial data, such as cash flow analysis, transaction categorization, smart budgets, automated savings tools, and personalized advice and recommendations.” 

If you’ve not done so already, as a community bank you should embrace these advanced money management tools. As I mentioned before, local banks have a responsibility to their community and their customers… especially those most in need. Isn’t that what sets community banks apart from the rest? And let's face it; those banks that offer better money management guidance can create better customers and better relationships, which in turn will drive repeat business and loyalty over time.

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 — that will help you build trust, relationships, and revenue.  Now, through our partnership with ChatGPT, customizing our layouts is even faster and easier. With the addition of AI-assisted content development, our clients can very quickly generate articles they need for newsletters and blogs and any other content they might need in their marketing efforts.

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.

Well, history certainly does repeat itself, doesn’t it? I immediately thought of this ages-old adage when I ran across this very recent American Banker piece on the challenges banks face with hiring. Here’s an excerpt:

“Recent research shows that 30% of new hires leave a role within the first 90 days. Statistics show that employee retention among non-officer levels is currently at 23.4%, a significant jump on the previous years and a worrying statistic that shows how talent acquisition remains one of the financial world's biggest concerns. This jump comes as those working in financial services enjoyed the largest salary increase of the last decade, with the sector as a whole seeing an increase of 5% on average.”

Sound familiar? it should. It was just over a year ago that we wrote in a blog: “Despite higher-than-normal pay increases, banks are still struggling to hire new talent and slow turnover, according to a report from consulting and accounting firm Crowe LLP. The survey of 429 financial services organizations revealed that in 2022, bank turnover at the non-officer level reached 23.4% — its highest level since 2019.

According to the survey, and 95% of its respondents, the challenge lies in finding and keeping candidates that are considered a “right fit.” Worker expectations of what a job can and should be are sky high, and meeting those expectations is critical.  After all, the stakes are very high in terms of productivity, performance, and importantly, cost.”¹

Well, the more things change, the more they stay the same, right? So, what can employers like small community banks do to attract and retain top talent? Sure, you need to work hard at “culture,” with initiatives that, for instance:

• Strengthen the relationships between coworkers
• Give team members maximum exposure to leadership
• Enhance their skills and abilities so they feel like they are true experts in their field
• Communicate objectives and paths to their achievement clearly and often so that they see success as attainable
• Engage with team members on their future goals and help them chart a path forward

But what do you do when you’re looking to attract top talent, and it’s important to communicate the “features and benefits” of your brand? I’m giving the same advice I gave over a year ago: 

Use your social media platforms!  

Good news. I’ve observed that many of the banks with which we partner in social media messaging are extremely active in this regard and I suspect that, as a result, they are doing well when it comes to attracting and retaining top talent. After all, when it comes to hiring, social media messaging is about a lot more than posting job openings. Here are just a few examples of the more popular topics that our client banks are using social to promote:

• Their brand
• Their associates' birthdays and anniversaries (and nothing says “this is a great place to work" better than a multi-decade anniversary post)
• Their associates' awards, recognitions, and achievements (both professional and personal)
• Their social responsibility initiatives
• Their community involvement

As you can imagine, social media posts that praise your employees also go a long way with potential customers, as well as hires. They reinforce that brand perception that is so important to small banks; that unlike the big national, you’re a neighborhood institution that is trusted and knowledgeable, and that you take a personal interest in the people who bank with you. And to think you can accomplish all of this with just a few social posts!

Making use of your social media messaging can help you avoid what American Banker points to as a major issue:  the lack of a culture fit. “Research shows that 32% of those who leave a role within the first 90 days do so because they don't consider the company culture to be a good fit with their own.” Well, here’s an idea. Use social media to help prospects come to you with a solid grasp of your culture. Social media can do that. And it can be as simple as posting on the topics mentioned above.

In conclusion, I’ll leave you with the same thought I left you a year or so ago, when we were talking about the very same recruitment challenges. Take advantage of social!  Why?

Targeted Outreach

Social media messaging platforms like LinkedIn, Twitter, and Facebook allow you to target specific demographics and job roles with precision. You can use these platforms to identify individuals with the skills and qualifications you seek and send personalized messages, opening a direct line of communication.

Showcasing Company Culture

Social media messaging isn't just about job postings; it's an opportunity to showcase your culture, values, and vision. By sharing compelling content about company achievements, corporate social responsibility initiatives, and employee success stories, you can create and reinforce an attractive employer brand.

Real-Time Engagement

Social media messaging provides real-time engagement opportunities. You can promptly respond to inquiries, address concerns, and provide instant information about job openings and the application process. This responsiveness can significantly enhance the candidate experience, and speed along what can often become a very time-consuming and expensive process.

Building Relationships

Talent acquisition is not just about immediate hires; it's about building relationships with potential candidates. Social media messaging allows you to nurture relationships over time, even if a candidate isn't currently looking for a job. When the time is right, these candidates may consider you their first choice.

Showcasing Expertise

By sharing insightful articles, research, and commentary on industry trends, you position yourself as a thought leader and attract professionals who are passionate about staying informed and being part of a forward-thinking organization.

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 — that will help you build trust, relationships, and revenue.  Now, through our partnership with ChatGPT, customizing our layouts is even faster and easier. With the addition of AI-assisted content development, our clients can very quickly generate articles they need for newsletters and blogs and any other content they might need in their marketing efforts.

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.

¹Insider Intelligence. Banks struggling with employee turnover. September 2022.

At a time when the marketplace is increasingly competitive, community banks face a unique challenge: how to effectively compete with larger financial institutions while, at the same time, maintaining their local, community-focused approach. One powerful tool that you, as a community banker can leverage to stand out, and stay connected with their customers, is newsletter marketing. In this article, we’ll talk a bit about the importance of sending out newsletters on a regular basis and why doing so is well worth the effort (PS: And, how it can be far less effort than you think!)

Building Stronger Customer Relationships

Community banks pride themselves on their personal touch. As a community banker, your newsletter can be a valuable marketing vehicle for strengthening your relationships with customers. By regularly communicating through a newsletter, you’re not only providing updates on new products and services, sharing financial tips and insights, and showcasing community involvement, among others. You’re building trust and with it, loyalty.

Educating Customers

One of the most valuable opportunities open to you as a local bank is your ability to offer one-on-one, personalized financial guidance to customers. A newsletter is an excellent platform for sharing valuable financial information, tips, and guidance. Topics can range from budgeting and saving strategies to explanations of the financial products and services you offer.

Cross-Selling Opportunities

Newsletter marketing also creates opportunities to cross-sell your products and services. By strategically featuring different financial offerings, you can remind customers about products they may not be aware of or have not considered. You can also give them a reason to consider such products. If, for example, you mention home equity lines of credit as the holiday season approaches, such a mention might remind customers that a lower-interest HELOC might be preferable to a high-interest credit card when it comes to covering holiday expenses.

Staying Top-of-Mind

Consumers are bombarded with information from various sources, thousands of times each day. It’s critical, of course, that you take advantage of ways to stay top-of-mind with your customers and in so doing, ensuring that you are their first choice when financial decisions need to be made. Newsletter marketing keeps you in regular contact with your customers and helps your bank stand out in all the “noise.”

Need a bit of help with newsletter content?

Sound like a lot of work? Not at all. Now, we’ve talked about ChatGPT before but it’s certainly worth mentioning again, especially in the context of creating long-form marketing materials such as newsletters. The ChatGPT functionality that is now a feature of our portal can be a tremendous help when you’re searching for newsletter ideas. Here’s an example of just how useful it can be. Start by entering a prompt such as, “what financial services products should my bank promote in the month of November?” 

When I did this, my AI-assisted writer gave me this advice:

The financial products and services your bank should promote in the month of November can depend on various factors, including your bank's goals, target audience, and current market conditions. However, I can suggest some common financial products and promotions that banks often consider for November:

• Holiday Savings Accounts: November is the beginning of the holiday season in many countries, and people often start thinking about holiday expenses. Promote special savings accounts or certificates of deposit (CDs) with competitive interest rates and incentives for those looking to save for holiday shopping.

• Personal Loans: Many people may need extra cash for holiday expenses, travel, or home improvements. Promote personal loans with competitive interest rates and flexible repayment terms to attract borrowers.

• Credit Cards: Offer special promotions on credit cards, such as cashback rewards, lower interest rates, or no annual fees, to entice holiday shoppers and travelers.

• Home Equity Loans or Lines of Credit: Some homeowners use the holiday season to make home improvements or renovations. Promote home equity loans or lines of credit for these purposes, highlighting the potential tax benefits.

• Auto Loans: November can be a good time to buy a new car, as dealerships often have end-of-year sales events. Promote auto loans with competitive rates and quick approval processes.

• IRA and Retirement Planning Services: As the year comes to a close, individuals may be looking to maximize their contributions to retirement accounts. Promote Individual Retirement Accounts (IRAs) and retirement planning services to help customers plan for their financial future.

• Online Banking and Mobile Apps: With the holiday season's busy schedules, promote the convenience of your online banking and mobile app services. Highlight features like mobile check deposit, bill pay, and budgeting tools.

• Financial Education Workshops: Offer free or low-cost financial education workshops on topics like budgeting for the holidays, debt management, or retirement planning. These can attract customers and build loyalty.

• Charitable Giving: Promote initiatives for charitable giving during the holiday season, such as partnering with local charities and offering to match donations made through your bank's accounts.

Of course, now that you have a few ideas, you can prompt ChatGPT again, this time with a prompt such as, “write a 100-word article on why November is a good time to get a personal loan from Your Bank & Trust.” Here’s what you get:

• November is the perfect time to explore personal loan options at Your Bank & Trust. As the year-end approaches, many people find themselves in need of extra funds for various expenses, such as holiday shopping, home renovations, or unexpected bills. Your Bank & Trust offers flexible and affordable personal loans that can help you meet your financial needs. With competitive interest rates, easy application processes, and quick approvals, getting a loan from Your Bank & Trust can provide the necessary financial aid without added stress. Don't let financial worries overshadow the joyous holiday season; instead, secure a personal loan from Your Bank & Trust this November and enjoy peace of mind as you tackle your expenses.

Conclusion

As a community bank, success depends on your ability to connect with customers, earn their trust, and maintain your unique position as a community-focused financial institution. Newsletter marketing is a powerful tool that can do just that; by building stronger relationships with customers, educating them about financial matters, cross-selling products, and keeping your brand top-of-mind. And, now with ChatGPT, all of the above is easier than ever.

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 — that will help you build trust, relationships, and revenue.  Now, through our partnership with ChatGPT, customizing our layouts is even faster and easier. With the addition of AI-assisted content development, our clients can very quickly generate articles they need for newsletters and blogs and any other content they might need in their marketing efforts.

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.

The Wall Street Journal recently issued this rather stark warning to what some are calling “resistors,” i.e., those employees who are less than enthusiastic about returning to an office. “Bosses are stepping up office surveillance this fall, vowing to use regular reports from badge systems to determine how many people are adhering to the return-to-work policy.”¹

Unfortunately, this is what it has come to; badge swipes, ceiling mounted heat sensors, and weight sensors in office chairs. The WSJ article goes on to say that “according to a survey of employees conducted by real-estate services company CBRE, 57% of companies are now tracking attendance. Among those conducting such tracking, almost half are doing so based on feedback from managers, while another 41% are tracking through badge swipes, sensors or data indicating where an employee’s computer is being used.”  

While I loathe the phrase “new normal,” employers are now faced with an entirely new kind of workforce. Is hybrid work here to stay? I’m not sure that anyone has the answer. I do know that as an employer, I struggle every day with the issues that come with hybrid work. 

Unfortunately, as if we employers didn’t have enough to worry about – with an uncertain economy, lingering supply chain issues, geopolitical unrest, and new competitors entering the marketplace daily, we are now contending with a workforce characterized by:

• Quiet quitting – when employees continue to put in the minimum amount of effort to keep their jobs – a portion of the workforce which Gallup estimates to be at least 50%² 
• A rise in the impact of sustainable business practices — workers feel strongly about a company’s mission and values, with 70% of workers prepared to leave if their company had an unfair gender pay gap and 68% saying the same about a lack of a diversity and inclusion policy³
• The rise of the “side hustle,”⁴ where individuals, primarily remote workers, attempt to work two jobs at the same time, while being compensated by one employer for full time work. This is a workplace trend in which a significant number of workers are engaged.
• Historically low unemployment rates

Is all of the above theoretical? Hardly. I spend far too much of my time addressing the above employee “characteristics” than I should. I have a business to run, not a daycare center. I’m also noticing that roughly 80% of the resumes I receive are from people who have had four jobs in the last four or five years, with many of them at their current job for just three or four months. Why would I hire such a person? Why should I think that in three or four months they won’t be looking to leave my company, leaving me to go through the whole recruiting process again, which is time consuming and expensive? It seems like individuals don’t stay at a job more than a few months before they start looking for another one.

Now, I’m sure that banks are committed to offering a workplace environment where employees can feel empowered, can collaborate, have a path forward, etc. I want all of those things for my employees, too.

But, there’s only so much employers can do and, right now, it appears – not just for me, but for many business owners – what I’m willing to do simply isn’t enough. Which is why we’re all looking at measures such as badge and screen time monitoring.

Since I work closely with banks, I take a special interest in how issues like these affect my banking customers.  This is what I hear:  banks want and need their employees onsite every day of the week. Watch the news and you can see that this is where they’re heading. An obvious reason? The financial services industry is a different kind of animal. Financial institutions handle massive amounts of data and face a continually evolving regulatory landscape. They’re prime targets for cyber criminals. In short, banks face unique challenges when it comes to remote workers. After all, each remote employee’s device – connected to a home Wi-Fi network – constitutes a security risk, one that exposes the bank to a malicious cyber attack. And the consequences of that data being breached can be massive  – from burdensome fines to irreparable reputational damage. So, is it any wonder that banks would love to bring their employees back into the office on a full-time basis? Not to me.

So, when it comes to a hybrid workforce, what is a bank to do? Seems pretty obvious.

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.

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.

¹The Wall Street Journal. Attention office resistors: The boss is counting badge swipes. September 24, 2023.

²Gallup. Is quiet quitting real? September 2022.

³ADP Research Institute. People at Work 2022: A Global Workforce View. April 2022.

⁴Bankrate. Survey: 39% have a side hustle, and 44% believe they’ll always need one. March 2023.