Get Your Message Out.

Financial institutions have a tremendous responsibility, now and in the coming months. Because right now, your customers are engaged in the financial struggle of their lives.  According to the 2019 U.S. Financial Health Pulse report, less than 30% of Americans are considered financially healthy enough to get through a single month on their savings.  When asked about their financial status, 54% reported “struggling” and nearly 20% described themselves as “vulnerable.” And, sadly, that survey was conducted even before Covid-19 swept the nation.

Your customers need your assistance. They need your assurance.  As their financial institution, what is your message going to be? Here is some of the messaging we’ve created for our banks, which they in turn have put to good use reaching out to their customers.



CARES Act Loans now available

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn.  But with 35 million small businesses in the US, these loan dollars will be distributed quickly. Make sure that your small business owner customers know about this opportunity!

Client Spotlight: Equitable Bank

Alison Larson, Vice President, Marketing Director at Equitable Bank, needed new creative that she could use to let her customers know about SBA Loans that could be available to small businesses. She was able to customize our “Coronavirus SBA Loan - Shot In The Arm” layout to perfectly match her bank's brand and get the message out to her customers via social media.

"That particular one I added to LinkedIn with some links to content I thought our small businesses might be interested in. I may add it to Facebook, too."       - Alison Larson


They’re Safe. And So Is Their Money.

Customers are still very concerned about their safety… and the safety of their accounts and investments. Provide them with the peace of mind they need with messaging that assures them that you’re taking the necessary steps to ensure both their personal health… and wealth.

Client Spotlight: Lifestore Bank

April Hartzog, Marketing and Process Coordinator at Lifestore Bank, wanted to guide her customers in alternative ways that they could still access her bank's services. She was able to easily customize our “Coronavirus - You Don’t Have to Walk In” layout to focus on online and mobile banking, and even included steps to make it easier for her customers to get started.

"I really appreciate the groundwork being done already by Bank Marketing Center. As the only person creating marketing and communication pieces for our bank and updating the website with current information, I just did not have time to create anything from scratch. It was fast and easy to find a layout that worked and to edit it.”           - April Hartzog

 Client Spotlight: American Nation Bank

Kevin Butler, Executive Vice President at American Nation Bank, decided to go in a different direction giving his customers peace of mind during unpredictable times. He needed to create content that reflected what his community needs right now. He was able to customize our "Coronavirus - Economic Stimulus” layout to focus on his bank’s payment deferment options so that customers seeking financial relief knew what actions they could take immediately. 

"We are in a constantly changing environment. New government programs along with waiting for guidance from the government as to how to implement them are a struggle. Yet we need to be united in our message as to the overall strength and stability of our banking system. We need to encourage calmness in a time of stress."  - Kevin Butler



Signs of the Times… Unfortunately.

Closing branch offices? Let customers know with closure signs that are quick and easy to customize and print in whatever quantity you need.

Client Spotlight: United Republic Bank

Amy Keltner, Executive Assistant & Marketing at United Republic Bank, needed to quickly inform her customers of a temporary Saturday closure of the bank's lobby without spending too much time developing content. She was able to customize our “Coronavirus Closing - Temporary Closure” layout to inform her customers about alternative ways they could still access their accounts and bank services.

"During this ever busy and mind-boggling time in keeping things going, it is great to have these various templates and not having to create the wheel but just make it your own.”         - Amy Keltner


For more information on how BankMarketingCenter.com can help your bank with the critical messaging needed during this Covid-19 crisis, contact Neal Reynolds at 678-528-6688 or nreynolds@bankmarketingcenter.com



Leading your Institution in a Time of Crisis

On March 11, 2020, according to the World Health Organization, the Coronavirus Disease 2019 (COVID-19) officially reached pandemic status. Corporations, and their leadership, are now faced with a crisis unlike any in our lifetimes. Even the challenges presented by the 9/11 attacks, as devastating as they were, do not equal those faced by America’s business leaders today.

What are the most important characteristics of good leadership in a crisis? Credibility, transparency, and visibility. These may not be all of what’s needed, but they’re certainly in the top ten.

What the leaders of financial institutions must do right now is respond in the way Mayor Giuliani did in the wake of the 9/11 attacks. In Paul Argenti’s Harvard Business Review article Crisis Communications: Lessons from 9/11, he describes Giuliani’s response, now legendary. “New York City Mayor Rudolph Giuliani arrived at the World Trade Center within minutes of the first attack to take charge of the rescue operation. In the days and weeks that followed, he would conduct several press conferences in the vicinity of the destroyed towers, attend many funerals and memorial services, and maintain what seemed like a ubiquitous presence in the city. His visibility, combined with his decisiveness, candor, and compassion, lifted the spirits of all New Yorkers—indeed, of all Americans.” 

The challenge you face now is different and, in many ways, tougher. 9/11 did not create the isolation that we’re experiencing with Covid-19. Predictions have the unemployment rate at 20%, and businesses are closing, complete industries are shutting down. Groceries and medications are in short supply. Schools and daycare centers are closed, leaving many parents to not only try to maintain a household in a tough economy, but care for their children, as well.

If ever there were a time when you should be making use of every social messaging tool you have, this is it.  Keep your members and customers abreast of the important developments that are occurring every day, as well as the products and services that you can offer to help. And use every available tactic to do so:  social posting, advertising, newsletters, email and direct mail. Some institutions are even holding live stream town hall meetings for those who bank with them, giving leaders an opportunity to literally converse with stakeholders.

Financial institutions have a responsibility to keep their customers and members, as well as their families, informed… and more. You also have the opportunity to instill the confidence, optimism, and a sense of shared goals that people desperately need at this moment.

For more information on how BankMarketingCenter.com can help your institution with communicating vital information to both your customers and your associates regarding the Covid-19 crisis, visit www.bankmarketingcenter.com, or contact Neal Reynolds by phone at 678-528-6688 or by email at nreynolds@bankmarketingcenter.com.  As always, I would love to hear your thoughts on this subject.

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Elder Financial Exploitation. Are We Doing Enough?


In a June 2018 white paper, “Elder Financial Exploitation. Why it is a concern, what regulators are doing about it, and looking ahead,” issued by the US Securities and Exchange Commission, author Stephen Deane called elder financial exploitation “a public health crisis, a virtual epidemic.” 

Why are our elderly more vulnerable to financial exploitation? And why is the problem likely to get worse?

America is aging at a rapid rate

The number of adults 65 or older is expected to reach 90 million by 2050.  According to the United States Census Bureau, “in less than two decades, the graying of America will be inescapable: Older adults are projected to outnumber kids for the first time in U.S. history.” Already, the middle-aged outnumber children, but the country will reach a new milestone in 2034, says the U.S. Census Bureau, when older adults will edge out children in population size: People age 65 and over are expected to number 77.0 million, while children under age 18 will number 76.5 million. It goes without saying that this aging trend lends a special urgency to the problems of elder financial exploitation.

Substantial financial resources

The second set of factors are related to financial and retirement trends. The assets that the elderly have accumulated through life make them a target of financial exploitation; according to the U.S. Census Bureau, the median net worth for homeowners age 65 and older is $201,500.  Moreover, pension trends increasingly have shifted responsibility to the elderly themselves to manage their retirement savings and investments. 

Cognitive decline

“Cognitive decline” is a condition in which decision-making becomes more and more difficult among the elderly. Losing our ability to make clear-headed decisions as we age, especially on matters of such importance as investing, can be even more debilitating than physical decline. Why? The impact of a decision that leads to elder financial exploitation does more than completely devastate an individual; it can be devastating for their loved ones, as well.  An elderly parent who is suddenly faced with financial ruin can put a tremendous strain on family members, who are then faced with taking on that responsibility.

How big a problem is it?

A  study of elder financial abuse conducted by MetLife estimated the cost of financial abuse of the elderly in the U.S. at $2.9 billion.  The study goes on to say that “it has been widely noted that this number probably underestimates the losses, because it relies solely on amounts reported in newsfeed articles. As a result, the annualized estimate could significantly underestimate the true extent of victim losses.”  The National Council on the Aging has this to say on the subject: “While likely under-reported, estimates of elder financial abuse and fraud costs to older Americans range from $2.9 billion to $36.5 billion annually, as the overwhelming majority of incidents of elder financial exploitation go unreported to authorities.”

Another problem with estimating the damage is that victims are encouraged and sometimes even paid to not report an incident of abuse, and a January 31, 2020 article in the Wall Street Journal cites such an incident.  According to reporting, Bank of America Corp. told a 92-year-old customer that the bank would attempt to recover the nearly $40,000 he lost to a phone scam, but only after promising, by signing legal documents, that he would not discuss the fraud or sue the bank. “Such agreements,” says the article, “help conceal losses to scammers, consumer advocates say, limiting awareness of increasingly sophisticated forms of fraud that many victims already find embarrassing.” 

What’s being done and is it enough?

Fortunately, financial institutions, as well as regulatory agencies, are beginning to take the issue more seriously. FINRA (Financial Industry Regulatory Agency) has already taken steps to curb potential fraud in brokerage transactions; FINRA’s recent rule changes allow certain financial firms to place a temporary hold on disbursements from the accounts of customers when financial exploitation is reasonably suspected.

Banks and credit unions are following suit, but taking steps cautiously due to legalities and privacy concerns.  Privacy laws, for example, which vary from state to state, can prevent financial institutions from aiding scam victims.

In the meantime, financial institutions can and should consider operational and compliance measures that can stem the tide of exploitation. According to a February 2018 article on BankDirector.com, “while bank and credit union staff are on the front lines in protecting elderly customers, bank directors play a pivotal, top-down role in emphasizing a culture of vigilance, and in defining policy and strategy to combat elder financial fraud.”  What can they do?

Policies, Procedures, and Training

Directors need to create policies and procedures that will address elder exploitation at their branches, where most elderly customers and members make their transactions. This can start with clearly articulating to staff your organization’s views, guidelines and stated mission with regard to elder financial fraud. Guidelines should then be put in place. According to b, “these may include pre-set withdrawal limits (either daily or monthly), disbursement waiting periods or communications with external sources, such as a trusted contact person for the client, local adult protective services (APS) or law enforcement.”

Lastly, in order to be effective in putting these guidelines into practice, it’s important that staff members receive the training they need to help them identify, address, and report potential incidents of fraud. Front line employees should understand it is critical that even suspected exploitative activity must be escalated through proper channels at their institution.  More importantly, they must know that they have the full support of management throughout the process.

Educate your Members and Customers

Your senior customers and members are not the only ones who need to be able to recognize potential fraud.  Family members, too, should understand what fraud looks and sounds like, and know how to respond.  In-branch messaging, along with “Lunch and Learn” meetings, can go a long way in educating those who could be affected.  Taking the message beyond the branch and into the community can be effective, as well, with presentations made to local assisted living and retirement communities, as well as professional organizations such as Rotary Club.

In addition to education, there’s also the promise of new technology. According to the 2018 SEC report, IT advancements present the most viable solution, “with technologies that will detect, prevent, and perhaps even predict the risk of elder financial abuse. Two-method verifications, voice recognition, and facial recognition are just a few of the emerging tools that could be used to foil attempts by imposters to steal money from the account of victims.”


To recap, elder financial exploitation is already considered a public health crisis and is expected to grow dramatically along with the aging of America, and the trends we’ve talked about here will only exacerbate the problem. 

Financial institutions have a responsibility to keep their customers and members, as well as their family members, informed. While regulatory agencies work toward solutions, banks and credit unions would do well to make certain that those who bank with them are protected. 

For more information on how BankMarketingCenter.com can help your bank with communicating vital information to both your customers and your associates regarding elder financial exploitation, visit bankmarketingcenter.com, or contact Neal Reynolds by phone at 678-528-6688 or by email at nreynolds@bankmarketingcenter.com .  As always, I would love to hear your thoughts on this subject.


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The Negative Review... Is there Such a Thing?


In one of our more recent blogs, we talked a bit about the benefits of social media. Since then, we’ve been hearing from some financial institutions that, well, weren’t convinced that a social media marketing program was right for them.

Their reasoning?  Negative comments.

Is that a legitimate concern? Well, the honest answer is yes… and no.

The reasons behind the “yes” answer?  Negative comments and review about your business on social media can be costly. Research has shown that a negative comment can cost your institution approximately 30 potential customers.  That is, however, if that comment or review is not responded to in the appropriate way.  Which brings us to the “no” part of our answer.

Let’s face it.  There’s a lot of truth to the old adage that you can’t make everyone happy, no matter what you do or how you do it. Taking this to heart, you can begin to understand that perhaps negative comments and reviews are not the worst thing in the world.  Why is that?

Be Proactive

We need to start with being proactive with our social media management.  That means staying ahead of potentially negative comments by “diffusing” them before they even appear.  This is accomplished through positive comments.  Integral to your social messaging is the message that you welcome comments.  Invitations such as “tell us about your experience,” and “don’t forget to mention your great experience on our social media,” will ideally keep the positive messages flowing on your social platforms.  When someone sees one negative review surrounded by 7-10 positive ones, the negative effect of that one comment is greatly diminished.  It provides an additional, positive perspective and that’s critical to your social marketing success.  And, believe it not, a negative comment can even “add legitimacy” to your social messaging.  Sad to say, people tend to question the legitimacy of platforms such as Yelp and Facebook when they show only positive reviews and no negative ones.

Take the high road and take it quickly.

Another step to take in keeping your platforms working for you in the event of a negative comment is this: Act quickly.  Individuals watching your social media are just as interested, if not more so, in how you respond to a negative comment than the comment itself. 

A great example of this:  Capital One’s response to one hundred million Americans having their personal information, transaction data, credit card numbers, and social security numbers stolen by hackers.  When they announced that "no bank account numbers or Social Security numbers were compromised," but then listed tens of thousands of bank account numbers and social security numbers that were compromised, they caused a “Twitter storm” that took months to subside.

Here’s something you must consider that other businesses needn’t. As a financial institution, there are always security threats when any account holder info is made public, even just a name.  Customers who post to your sites may not be thinking about the fact that others are watching. If for example, a customer has a concern about a particular service you offer, one that they’re taking advantage of, it’s best to take that conversation out of the public view.  Let the individual commenting know that you’re sorry that they feel the way that they do, that you understand, and that you’d like to speak with them further, but privately.  The last thing you both need is a hacker getting into the conversation.

Monitor your Platforms Regularly

By keeping close tabs on the dialogue you’re having with your customers – and responding promptly and in a productive way – you’re creating personal relationships that can then become mutually-beneficial business relationships.  You can also learn from your social interactions. Perhaps many people are complaining about/commenting on a similar topic, service, or member of your team. Perhaps those complaints are legitimate. Social media comments can help you gain insights into how customers, and potential customers, see your business; very useful information when you want them to do business with you! So, don’t let the potential for a few negative reviews or comments deter you from social media marketing.  See these comments, instead of negative, as opportunities to build relationships and with those relationships, your business.

For more information on how BankMarketingCenter.com can help your bank with Social Media, here’s an article on social media marketing that we feel is worth reading.  You should also feel free to contact Neal Reynolds @ 678-528-6688 or nreynolds@bankmarketingcenter.com




Time to Get in the Social Marketing Game.


The name of the game, when you’re a financial institution looking to grow deposits, customers, and revenue, is to build relationships. This can be challenging, however, in the digital age.  While you still have customers who bank in more traditional ways, there’s a new breed of customer out there. And building a relationship with this customer is not easy… but it’s also critical. These are digitally-savvy individuals with high expectations and low attention spans, individuals who are much more apt to open an app than a magazine.  The way to reach these future customers, who you really need now not tomorrow, is through the media with which they’re most comfortable. Social.

Is social a big deal?  You can bet your bottom dollar it is.

According to the latest Global Digital suite of reports from Hootsuite, the number of people around the world who are active social media users reached 4 billion in 2018.  Today, well over half of the world’s population is online. Needless to say, social is here to stay. 

How are financial institutions responding? According to a recent study by the ABA, nine out of ten banks surveyed are either “somewhat active” or “very active” on social media. It’s no surprise that FIs are working hard to build strategies that can make social media marketing an integral part of their overall marketing.  After all, social platforms can help you connect with your customers, build relationships, increase brand awareness about your brand, and generate sales leads. All good things, right?  If you’re not convinced, consider the following.

Why Social?

The quick answer? It’s both efficient and effective. Social media marketing can be implemented for a fraction of what more traditional media such as television, and outdoor boards can cost.  Second, social media marketing is measurable, which means you can refine and re-align your messaging as you go.  A benefit that traditional marketing tactics such as print and direct mail, simply can’t offer. Third, this type of marketing facilitates interaction that others don’t; interaction equals engagement, engagement equals relationship which eventually – hopefully – leads to loyalty and increased revenue.

So, what’s next?

Right now you’re probably experiencing that “pre-social media euphoria,” a feeling that social media marketing is quick, cheap, and easy.  Unfortunately, making the most of social platforms isn’t quite that simple. A successful social media marketing campaign, like any successful endeavor, must start with a plan… a SMART approach.

Social media marketing. It starts with a SMART plan 

The secret to successful marketing is, of course, planning.  Before you spend a dollar, you want to have a comprehensive picture of your market. Who are your potential customers? Where will you find them?  What should you say to them? What are your competitors saying? When is the best time to reach them?  And, how can you get your message to them in the most cost-effective manner?

As a critical component of your overall marketing plan, social messaging deserves the same consideration as any marketing initiative. So, before you even consider posting to Instagram or opening a Facebook account, here is what you need to do first:

Set SMART goals

Step one of any planning process is always goal setting.  What are you looking to accomplish?  Perhaps your goal is to build brand awareness.  To generate qualified leads and drive sales.  To cross sell new products or services to existing customers. Or, to improve customer retention. This is where a SMART goal-setting framework can be of tremendous help. Establishing such a framework will help you create meaningful, measurable, and achievable social media goals that will support your business in the long run.   What does SMART mean? 

  • Specific: Specific goals are more readily measured, making it easier for you to track your success.
  • Measurable: Make it measurable. “Reducing costs” is a worthwhile goal, but it’s vague.  “Reduce payment and deposit processing costs by 20%” is a goal that, by contrast, is not.
  • Attainable: Sometimes, you won’t be able to really determine the achievability of your goal until you’ve begun your efforts to accomplish it. If you set a goal to reduce your processing costs by 20% and reduce them by 10% in the first month, you need to re-think that goal!
  • Realistic: Is your goal a realistic one?  A 20% reduction in cost seemed, initially, like a realistic, attainable goal. Adjust as needed. Keep your goals attainable, but give yourself something to aim for.
  • Time bound: Every goal needs a start and a finish. Without a completion date, you can’t measure success.

Now that you have an idea of how to set goals, next we’re going to talk about social media channels and what they have to offer in terms of helping you grow your business.

On your mark, get set, get social!

You know that you need a social media marketing plan; you just don’t know where to begin, right? Which platforms make the most sense?  Well, here are the ones that should be at the top of your list! As you’ll see, each one is unique, offering its own unique opportunities:


The oldest and by far the most far-reaching of all social channels, Facebook boasts over 2 billion users around the world. This platform has gained popularity among businesses not just for its affluent user base, but also for the variety of options it offers, including professional pages, paid post promotion, and native advertising.  For financial institutions, Facebook is an ideal channel for reaching an older (55+), affluent market with products such as second home mortgages and retirement vehicles. To learn more, visit https://www.facebook.com/business


For a long time, Twitter was known as the platform for Millennials. All that has changed. For businesses, including banks like yours, Twitter is 1) a way for customers to share compliments and complaints (yes, unfortunately!) and 2) an opportunity for you to learn more about your customers and to quickly address their needs in terms of products, services, and social responsibility, for example. Twitter now offers a series of features geared toward customer service and support, which will “enable businesses to focus on personalized, customer-focused responses in order to provide winning social customer service.”  To learn more, visit Twitter Business .


Instagram has a following of approximately one billion users. As of August 2019, 36% percent of users were between 25 and 34 years old while 23% of users were between 18 and 24. Instagram  users, then, are largely Millennials, a desirable market for financial institutions, particularly as they move to a digital banking experience that is “in hand” versus “in branch”. In addition to building social relationships, Instagram also offers paid advertising options.  To get started,  visit Business.Instagram.


YouTube is the second largest social network and second largest search engine in the world. Almost 5 billion videos are watched on YouTube every day. YouTube is an ideal platform for complex products or services – for financial institution, services such as home mortgages, for instance – one, if you’re looking to reach a relatively young audience (perhaps first-time home buyers) and two, where long-format informational videos can go in-depth on the benefits your products/services offer.  YouTube also reaches individuals age 45-64, making it a good vehicle for retirement products.  To learn more, visit youtube.com.

All in all, social media channels can be truly effective in helping you introduce new products, cross sell, gain valuable insights into customer preferences, improve customer service, and more.  Ready to get started?  Get out there, then, and get social! 

For more information on how BankMarketingCenter.com can help your bank with Social Media, contact Neal Reynolds @ 678-528-6688 or nreynolds@bankmarketingcenter.com


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Technology Trends You Can Bank On



Thanks to technology, we live in an ever-changing world, and this is particularly true for financial institutions (FIs). For one, the way consumers manage their money – investing, borrowing, saving, and lending – will not be the same tomorrow as it is today. Add to that the fact that FIs must also manage regulatory and compliance issues, data and personal information security issues, and much more, FIs are becoming increasing reliant upon the solutions that financial technology, or fintech, companies can bring. As a result, fintech is no longer limited to back-office functions. Fintech solutions, with their ability to help institutions streamline processes, expedite services, and secure information, are transforming this $8.5 trillion industry, most significantly in the area of customer-facing processes.

Here's the situation. The industry’s biggest players are under siege from not only small competitors such as de-novo banks (ala Grasshopper), but “non-banks,” as well; those financial service providers that are not regulated by the banking industry. Since these companies – such as the Big Four; Google, Apple, Facebook, and Amazon – can devote a greater percentage of their assets to cutting-edge financial technology, they’re well positioned to steal tech-savvy customers from traditional banks. FIs need to be both nimble and digitally savvy in order to thrive and are hoping that technology will allow them to deliver a faster, more robust experience that can contend with these new threats. Given, however, that a significant portion of their resources must be dedicated to security, compliance, and other industry-specific requirements, FIs have a tough battle ahead.

Security, blockchain and cryptocurrency

What does this technology mean to the financial services industry? Security. Around the globe, FIs are moving toward block chain technology (BCT) for operations such as money transfer, record keeping and other back-end functions. BCT is extremely useful in FI processes such as secure document management, reporting, payments, treasury and securities, and trade finance. Some FIs, including JP Morgan Chase and Ethereum, are already exploring the potential of this technology.

Turbocharged ATMs

ATMs transformed the bank tech system when they were first introduced in 1967. The next revolution in ATMs is likely to involve contactless payments. Much like Apple Pay or Google Wallet, soon you’ll be able to conduct contactless ATM transactions using a smartphone.

Some ATM innovations are already available overseas. For example, biometric authentication – which allows the consumer to be identified by evaluating one or more unique, distinguishing biological traits like face, hand, retina, voice and ear features – is already in use in India, while iris recognition is already being utilized by banks in Qatar. These technologies can help overall bank security by protecting against ATM hacks, but may not be available to US-based FIs for some time due to the strict regulations governing North American banks.

Regulatory technology

In recent years, there has been an increase in instances of compromised consumer data. Whether incidentally allowing user information to be hacked, or covertly sharing consumer’s private search histories and other analytics, many corporations are feeling the backlash of compromised personal customer data. The good news is that this increase in cybercrime has given rise to a host of new technologies designed to enhance privacy controls and further safeguard client data. One such technology is regtech, or regulatory technology.  Regtech companies, through the use of data and machine learning, are helping FIs reduces risk by analyzing data on breaches and illegal activities. Two products currently on the market that offer this protection are ProfitStars Gladiator Suite and RedOwl, which was purchased by Forcepoint.

Artificial Intelligence

Artificial Intelligence (AI) can provide quick and personalized services, dealing with each customer and focusing on their specific requirements. How? By collecting information and building models – and subsequently, customer conversations – based on that information. And, what about robotics, a technology that mimics the actions of humans performing simple rule-based processes? Software robotics will one day automate all of those inefficient, rule-based processes that demand little human judgement.

The banking sector has yet to fully embrace the use of artificial intelligence (AI) and software robotics, but they are making tremendous strides. Some banks are making use of robotics in combination with human support to give their customers relevant advice on how to improve their banking experience or make small changes to their accounts and services. Others are using AI in the back office. Some institutions -- U.S. Bank, Wells Fargo, and BBCA Compass, to name a few – are implementing robotics and AI to streamline back office procedures and establish more uniform (and cost-effective) processes. The automation of every-day tasks such as cutting and pasting data from one app to another is causing a shift in banking jobs and the skills required to do them.

Another example of AI implementation is the automation of customer service lines. Some of the advancements in this area have been so great that some consumers find it hard to distinguish between a robot and a live customer care agent. (Hint: Attire is a giveaway).

Last, but not least, is the chatbot. Some FIs have been using chatbots for years, and advancements in the field of artificial intelligence (AI) technology will continue to add value in this area. As chatbots’ intelligence has increased, so too have their capabilities.

With the new “conversational banking”, chatbots can address a variety of customer service issues, and FI customers can get answers immediately. This not only gives the customer the personalized information they demand, but one, it ensures that everyone who interfaces with the FI gets the same level of attention and two, CSRs are free to focus on more important areas of the business.


As time goes on, an increasing number of remote technologies will continue to enable FIs to enhance a digital experience that consumers will access via their mobile devices. According to Samsung Insights, wearables such as smartwatches are “poised to become the future of the retail banking experience. One example is that banks could use Bluetooth beacons to push personal greetings to customers’ smartwatches when they enter a banking location.” Another type of wearable might be smart glasses for bank tellers, according to a report from Deloitte, “which could process customer banking information for the employee as the employee is simultaneously doing other customer service tasks.”

With the digitalization of the banking world growing, there are a lot of exciting things to look forward to in 2020 and beyond. Fintech solutions, with their ability to help institutions streamline processes, expedite services, and secure information, will continue to transform the banking experience and, with it, the entire financial services industry.




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‘A Walmart-sized battle’ about fairness between community banks and core providers

Having spent the last 40 years in the marketing industry, I’ve always wondered why when I log into my Farmers and Merchants Bank account, the name Jack Henry Associates, Inc. shows up. Fortunately, I know who Jack Henry is, but for most people, that has to raise a red flag. Who the heck is Jack Henry and how did he get unto my account? Why did Farmers and Merchants Bank send me to him?

Who is Jack Henry?

Turns out, the company, as well as its competitors – like Fidelity National Information Services (FIS) and Fiserv, Inc. – is a big deal in the banking world, providing what The Wall Street Journal recently described as “much of the modern banking system’s financial plumbing, especially for smaller banks.”

But here’s the deal: Just as Congress dropped an oversized hammer on community banks when it enacted reforms after the 2008 financial crisis, some small-town bankers and their organizations contend that core providers aren’t playing fairly with them, giving big banks access to their leading-edge technology while making smaller banks delay implementation of their latest software.

For example, the Journal reported in its April 11 edition that Lead Bank, a community institution in Kansas City, Mo., wanted to offer Zelle, the payments app, to its customers. They were told by Fiserv, one of its technology providers that it would have to wait until June at the earliest to launch.

Big banks, however, began offering the service two years ago, the Journal reported.

Therein lies a problem.

Fiserv, FIS, Jack Henry and their competitors are known as “core providers” whose pitch to small banks is that the core providers can give Main Street banks access to the same tech as the Wall Street institutions.

But with a nod to the musical “Oklahoma,” when it comes to this promised technological access, everything isn’t up to date in Kansas City, or at other community banks, putting them at a competitive disadvantage.

But community banks aren’t going to let this pass without a fight. In fact, some are filing lawsuits, looking to startups and taking a strength in numbers approach, negotiating as a group for a better deal, the WSJ reported.

American Bankers Association CEO Rob Nichols speaks out

This alleged failure to deal fairly isn’t isolated, American Bankers Association CEO Rob Nichols told the Journal.

“I’ve met with over 3,000 bank CEOs and this came up time and time again; the challenges and constraints they face with their core provider,” Nichols told the WSJ. As you know the ABA represents banks big and small.

But the problem is about more than equal, timely access, according to the story. Community banks and industry organizations say that unfair contracts and sometimes-mediocre offerings make it hard to compete with their bigger rivals.

“Executives at some small banks say they feel they are becoming franchises of the core providers because they are so reliant on their technology,” the Journal reported.

Community banks and core providers began working together in the 1990’s, as the banks sought to computerize paper work. But now, the small institutions turn to core providers for everything from websites to apps.

Ask community bankers, and dollars to doughnuts they’ll tell you that while eye-to-eye relationships are critical to keeping customers, flashy, user-friendly tech is often the difference between gaining and keeping – or losing -- a new client.  Especially with younger customers, tech is critical.

The WSJ cited numbers from the consulting firm J.T. Kearney:

“Midsize and local banks hold 13 percent of primary banking relationships but capture only 7 percent of the customers who switch banks,” the WSJ reported.  Cutting-edge tech is more often than not the deciding factor in the banking choice for customers who switch institutions. Banks with less than $100 million in assets hold only 6.42 percent of industry assets.

Community Banks are putting up a fight

Given the significance of all this to the future of community banking, small institutions are putting up their dukes.

An examples from the WSJ:

  • Millington Bank in New Jersey found that if it sold itself, it would owe FIS more than $4 million, according to court records cited by the paper, an amount equal to a year’s profits. Millington sued FIS and the case is awaiting arbitration.

Aaron Silva’s firm Paladin fs negotiates contracts with core providers on the banks’ behalf.

“They’re not building highways to the banks’ data,” Silva told the Journal, “they’re building toll roads”.

For its part, Fiserv said it has updated its processes and plans a widespread roll out of Zelle to many banks at once. But in this spring of small banks’ discontent with core providers, Lead Bank CEO Josh Rowland and other community banks are growing impatient. He compared their battle with the fight between big box stores and mom-and-pop retailers.

Community banks, he told the Journal, “are fighting a Walmart-sized battle.”

“We’re not going to wait around,” Rowland told the paper. “But it’s harder than it feels like it should be.”

In an earlier article posted HERE, we discussed the importance of reliability and technology for community banks. In light of these recent developments in the relationship between core providers and small institutions, some points bear repeating:

  • “Invest intelligently in technology. Community banks know their markets well, better than one of the big Wall Street players. As a result, your bank should know specifically what technology works best for your customers. Tailor your tech investment to those specific needs.
  • Face Facts. The bottom line is that in 2019, it’s short sighted to rest on the laurels of community relationships and ignore technology. If you want to attract new, younger customers who will one day want mortgages, car loans, or investment services, community banks must adapt to changing times. And remember, your older, established customers may be more tech-savvy than you think.

Too, remember the fate of print newspapers, which failed to adjust to the tech boom and as a result, failed to monetize digital content. As a result, the morning Daily Bugle that used to be part of your morning routine is no more. Without adapting to technology, your bank could go the same way. Consider this chilling number from Finextra.com: In 1985, there were nearly 16,000 community banks. By the end of 2015, there were 5,874.

  • You’re not too small to have a mobile app. With an app, you can maintain relationships, while at the same time maintaining expectations about customer convenience. Maintaining a reliable app boosts customer loyalty.

While the WSJ article, as well as the reality of the declining numbers of community banks may send chills through our sector of the industry, as long as your bank’s doors are open, it’s not too late to change.”

Read the entire Wall Street Journal article here:


What’s been your community bank’s experience with core providers? Send me your story at nreynolds@bankmarketingcenter.com


Financial Literacy Becomes Required Subject

April, Financial Literacy Month, is the time of year when we recognize financial literacy and how we are doing at this as Americans. So what better time to talk about financial literacy and our school systems? Knowledge about the ins and outs of daily finance activities is lacking among a large population of Americans. Many schools are taking notice. Knowing how to navigate the bare minimum requirements of adulthood, such as paying bills and filing annual taxes, is an integral part of being prepared for the future. Yet it is an area where there is a lot of room for improvement. In order to properly prepare our children for the huge leap into adulthood it is imperative they are equipped with tools to properly manage their money, obtain and maintain credit, plan for their future savings, budget their expenses, and much more. Financial literacy has become a required subject for many schools across the nation, and this practice is taking hold and growing.

What is Financial Literacy Month?

April has been recognized as Financial Literacy Month in the United States since the year 2003. Financial Literacy Month has a long history with inception dating back to nearly 20 years ago. The National Endowment for Financial Education (NEFE) introduced a financial literacy program nearly two decades ago as part of their High School Financial Planning Program. NEFE’s involvement in this literacy program helped to establish Youth Financial Literacy Day, which over the years impressively evolved to Financial Literacy Month.

Joining Forces With Schools

Concepts such as student loans, interest rates, qualifying for a mortgage, credit, and balancing a checkbook are proving to be foreign concepts to many Americans. Recent studies show that around 63% of United States residents could not pass a basic financial literacy quiz – a worrisome figure! Not only are people not attaining financial literacy, but a staggering percent are also not preparing for financial security. According to a recent survey done by the Federal Reserve Board, around 40% of U.S. adults do not have enough money in their savings account to cover a $400 emergency or household expense. Reports and studies such as the above have been receiving the attention they warrant. Many schools are making a change in their curriculum because of it.

Several states have taken steps towards making financial literacy lessons a priority in their schools. Wisconsin took a huge leap in the right direction. This happened when then Governor Scott Walker signed a bill requiring their school districts to include a personal finance curriculum into their kindergarten through 12th grade classes. New Jersey is now requiring schools to integrate financial literacy lessons into each year of middle school, and Iowa and Kentucky are now requiring all their students to pass a financial literacy course as a pre-requisite to high-school graduation. While these efforts are great, and the feedback is so far good, we hope to see other states following suit and passing similar legislation.

Since bankers are experts with money management, being involved in consumer education programs is a natural fit for them. Bankers are stepping up in communities nationwide to participate with financial literacy programs that are directed towards younger children, high school students, adults, as well as senior citizens and those with limited access to financial services.

For example, the Oregon Bankers Association, or the OBA, is pleased to have provided a Financial Education Resource Guide for teachers, bankers, and the general public. Here they provide the tools for managing all aspects of financial life - from creating a budget to managing your credit and protecting your identity.

By setting up a time to go into schools you can give students and faculty information about financial literacy. And, help promote your bank.

Encourage Teachers to Add this To The Curriculum

The topics for lesson plans on financial literacy are seemingly endless. Currently, most financial literacy programs are covering topics such as investing, credit cards, budgeting money, interest, managing debt, and bill paying. Ideas for additional useful topics such as how to file taxes and how to start a business, to name just a few, are plentiful and wait on the sidelines for funding and resources.

Luckily, teachers do not need to have a specialized degree in finance to teach their students a successful financial literacy course. These lessons can be introduced into everyday topics and subjects that students are already learning, and they can be started as young as kindergarten with the concepts of sharing, bartering, and saving for something special. The options for integration are endless, making this necessary change in our school’s curriculum affordable.

Look for simple integrations or information that you can provide to teachers and students.

Want to Get Involved?

You don’t have to be a legislator, educator or finance guru to get involved in Financial Literacy Month. Any bank can help educate the public about financial literacy at any time. This movement can help bring awareness to the problem lacking financial literacy among our children and young adults.

Sometimes referred to as Hill Day, this event has grown from a once small gathering on the steps of Capitol Hill to a large public event that attracts hundreds of participants each year. Hill Day is free, open to the public, and we encourage anyone who wants to get involved.

Financial Literacy Day on Capitol Hill is usually hosted in April, but this year the event will be held on June 26th, 2019. We would love to hear feedback on how you improved financial literacy in your community. Or, if you’re looking for ideas on how to get the word out, reach out to us for more information on bank marketing