Today’s banking customer has lots of questions for their institution. And those questions are primarily about trust. As cited in a July 6 American Banking Journal article, The trust dividend:
“Customers are asking harder questions about where their money sits, how it’s protected and whether institutions can clearly explain those protections. The rapid growth of embedded finance and partner banking models has accelerated customer expectations around transparency and security. Consumers and businesses increasingly want to know not only where their funds are held, but also how those funds are protected.”
Mistrust in organizations and institutions has always been with us. Why is a “trust dividend” so important now?Americans are experiencing one of the lowest levels of trust in institutions in decades. Recent research tells us that they are losing confidence in nearly every major institution at an alarming rate.
According to a recent Gallup poll, Confidence in U.S. Institutions Remains Near All Time Low:
“Americans’ confidence in U.S. institutions remains historically low, as reflected in their average view of 14 institutions measured each year since 1993. Currently, only 27% of Americans express “a great deal” or “quite a lot” of confidence in these core institutions, one percentage point above the record-low average in 2023.”
And yet another survey, this one by Edelman, tells us that more than six in ten respondents expressed a moderate or high sense of grievance, believing that “governments and businesses serve narrow interests rather than ordinary people.” The report also found that many people now fear being lied to by institutional leaders more than they fear economic disruption itself.
Trust in a Time of Doubt
Community banks have always competed on relationships. Now, they must compete on something that is becoming even more valuable: trust.
There was a time, not long ago, when banking customers were simply interested in products, services, and features, such as the best interest rate or the latest online banking enhancement. Now, they’re looking for reassurance. They want to know their deposits are protected, their PPI (Protected Personal Information) is secure, and that someone will be there to help in a case of fraudulent activity. They want to bank with an institution that is transparent, accountable, and genuinely invested in their financial well-being.
That's a story community banks are uniquely positioned to tell. But, building trust isn't something that can be accomplished with a single marketing campaign. It can only be earned over time; through educational content, social media, email campaigns, website messaging, and in-branch marketing. Taking a multi-channel messaging approach with a consistent cadence, i.e. the right message in the right place at the right time to the right audience, community bank marketers can demonstrate why they're worthy of a customer’s confidence.
Thankfully, they have countless opportunities to accomplish this; by reinforcing trust across every customer touchpoint. They can showcase:
- the sophisticated security measures that safeguard accounts and information
- their visibility at events that are important to the community
- their support of charitable organizations
- the financial guidance they provide to customers and small businesses, and
- the personal relationships that their employees have with their customers
Telling these stories across all of their marketing channels transforms trust from a promise into a visible, everyday experience.
Community Institutions Have a Head Start
There is some good news for local institutions. According to the Edelman study, as trust in large institutions has declined, consumers have increasingly placed their confidence in organizations "closer to home." As the report notes: "People are placing greater trust in those closest to them; local businesses, community organizations, and people within their own networks." The study goes on to note that “people increasingly place their confidence in organizations that demonstrate shared values and meaningful contributions to the communities they serve."
Turning Challenge into Opportunity
In this age of mistrust, community banks can turn the trust challenge into an opportunity by telling a story that national institutions simply cannot. And that’s the story of a neighborhood institution that prides itself on personal relationships; an institution that can be trusted with their customers’ personal information, and their money. The good news? They already have a head start.
Bank Marketing Center
We’re Bank Marketing Center, the leading subscription-based, automated marketing platform designed especially for community banks. We are presently helping the bank marketing professionals at over 300 institutions craft and distribute topical, compelling marketing communication that builds trust in their brand, deepens customer relationships, and grows revenue. We do this by automating the essential marketing functions banks rely upon; content creation using professionally designed bank marketing templates, social media scheduling and monitoring, digital asset management, compliance routing, and more.
We also believe in sharing what we know and learn. Whether it’s insights on the latest AI tools, tips for attracting and retaining top talent, a webinar on operational efficiency, or what experts are saying about the future of banking, we’re committed to helping community banks thrive.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.