Make it Simple. Make it Work.

I recently opened a CD and a high-yield savings account online in less than 25 minutes. I understand that this is not typical, as my previous three attempts at opening the accounts left me frustrated, confused and looking for another institution with an easier application process. This should interest you, because you need to know what you’re up against. You need to know that there are institutions that have found ways to make account openings quick, simple and secure despite regulatory woes. You need to know that if you can’t open accounts easily and quickly, deposits are being lost to those that can.

The first attempt was with ING Direct, one of the more recognizable online banks around. The initial application process took about 30 minutes though, wanting to make sure to read the fine print, I was admittedly working rather slowly. Still, having taken longer than I expected, I decided to save my application and finish it later. When I tried to complete the application the next day, it was nowhere to be found. My application (personal information and all) had vanished somewhere into Cyberspace.

Frustrated, I searched for another option.

I found Capital One’s Direct Banking at the very end of the application process (after I had saved my information), I clicked what was to be the final “submit” button in the process. My computer lost connection to Capital One’s server. My account had been locked, because I had “abandoned” my application. Despite my pleas to the customer service representative, I would need to wait 30 days and start from scratch.

Third time’s the charm, right? Nope.

I tried my luck with Corus Bank in Chicago. If I had problems this time, I would be able to walk into a branch and sort it out. With that in mind, I reluctantly clicked on their online application. The online portion was smooth and quick. The problems came after that portion was complete. In 5-7 business days, I was to receive an information packet with my account details and instructions for completion of my account opening. It was 10 business days before I received my packet of instructions, and the rest of my application. My online, paperless application included paperwork.

You’ve got to be kidding me. Is this really so difficult? Doesn’t anyone want my deposits?

In true Generation-Y fashion, I put down my iPod, picked up my laptop and visited www.bankrate.com. In a matter of minutes, I found AmTrust Direct which had the products that I needed, paid higher interest rates than the previous three, and had a guaranteed 10 minute application for each product. In twenty five minutes I had found AmTrust, completed both applications, and gone back to enjoying my day. My accounts were opened the next business day.

Alone, my deposits are too small to make an impact on the bottom line of a behemoth like Captial One. But, how many other people, with much larger balances have had similar problems? How much of this low maintenance deposit money is walking out the door? More importantly, has money like this walked out of your institution’s doors? Have your customers or prospects had these or other problems with your institution? Ask yourself, have we made it easy to open an account, to switch to our institution, or to manage our accounts?

Does your process work seamlessly every time? If not, how can it be improved? Either way, can you make it quicker and simpler? Can you provide a process to bring accounts to your bank in 10 minutes?

Make it simple. Make it work. Or, in 25 minutes, every deposit dollar in your institution can be gone.

On Leadership

Facing New Realities in the Financial Services Industry

A chilly, damp Sunday morning in October found me with about 40,000 other men and women participating in the 26.2 mile Chicago Marathon. This was my fifth marathon so I knew what to train for and I knew what to expect; but I also knew that each race was different and offered new opportunities and challenges.

As you might imagine, there are countless thoughts filling your mind during a run of that length – my pace, the next water stop, the cramp in my leg, my personal best. But along this year’s course my thoughts were interrupted by a spectator at various points along the course who was yelling “Just get it done! You’ve committed, just get it done!” And while his message had clear meaning for so many of us that were running; his unsolicited encouragement also prompted me to think about the topic of leadership.

“Why leadership?” you ask. It is really rather simple. Leadership is the capacity to create a compelling vision and translate it into action. And within the financial services industry, top management teams may talk a lot about growth, profitability and competition – but they often fail to flex their leadership muscles and translate the talk into meaningful action. They need someone on the sidelines reminding them to “Just get it done!”

Read More Here

Issues Facing Your Institution

As we prepare our presentation Hot Topics for 2007, we would like to invite your suggestions regarding the issues facing your institution that you would like to see addressed in our upcoming presentations and/or articles. The consultants at Market Insights are constantly seeking fresh ideas - so let us know what you would like to see discussed in the coming months.

Industry Focus: Differentiation

The BAI Retail Delivery Conference is right around the corner, and Market Insights is looking forward to participating in an event that will focus on the themes of innovation, strategic clarity and differentiation – as we have supported our clients in these areas for quite some time. Upon reviewing the program for the conference, which takes place in Las Vegas from November 14th-16th, it’s obvious that the industry as whole is facing many of the same issues; BAI’s program sites the following as “your challenges:”

- Respond the forces of commoditization
- Escape the trap of old ways of doing things, and
- Transform your organization

Market Insights has recognized these “challenges” in many of our projects, and has been involved in many Differentiation and Messaging Programs to help institutions respond to the ever-present forces of commoditization. In addition, our approach promotes action – and is definitely designed to help organizations transform their thought and business processes.

It comes as no surprise that the November/December issue of BAI’s Banking Strategies magazine focuses heavily on the issue of differentiation; the conference is all about it. The conference description starts: “It’s not easy to differentiate. To do it right, you need to change your perceptions and challenge how you think about your business.” I would encourage you to read the following articles from the magazine:

- Generating Customer Delight Across a National Franchise
- How Umpqua Sustains and Builds On Its “Pretty Cool” Status
- Customer Experiences Rule

“All banks and credit unions are the same.”

We spent a great deal of time in 2006 researching bank and credit union value propositions, messages and taglines – and most of them are mediocre at best. Today’s customers don’t want to hear you talk about your “great service,” they expect it. That being said, here are five over-used value propositions that will not differentiate your institution from the competition:

1. We provide exceptional service
2. We are your community bank/credit union
3. Our decisions are made locally
4. Our people make the difference
5. Come see what makes us different

Success in today’s commoditized financial services industry depends heavily on value added – value that is truly different from the competition, and the effective communication of that value. Until a unique value proposition is communicated, most consumers will tell you that all banks and credit unions are the same.

Does your value proposition look like any of the five listed above? These may have done the trick in years past, but do little in today’s financial services industry to differentiate based on real value. Remember, in order to differentiate yourself you must be different, truly different – and not just say that you are.

Learn more about Market Insights' Differentiation and Messaging Program.