Name Your Own Account

In an effort to give its customers a "fun and easy" way to save money, Americana Community Bank (Sleepy Eye, MN) announced the introduction of its Name Your Own Account this week. The account encourages customers to set a specific purchase goal - like a new TV, boat or vacation - and use the account to save specifically for that purchase.

After opening the account, the Bank also plans to send account holders email updates as their savings grow - and they get closer to having enough money to make their big purchase.

The account is the latest in efforts we've seen relative to institutions allowing customers to customize an account - or features of that account. And, while this will certainly allow ACB to engage its customers, I'd like to see how the value of the account will be communicated to both customers and non-customers.

I was disappointed in not being able to find any information about the account on the Bank's website - I read about the account in a press release, but found no additional information online. Nonetheless, I wonder what kind of long-term success the name your own account will have for ACB. Will customers begin saving again for something else (and re-name their account) after their initial purchase is made?

Unlike initiatives like ING's Your Number - where long-term retirement savings goals are the focus, Americana Community Bank's account focuses on relatively short-term goals. And while these short-term goals are certainly important for the customer, especially given the focus on saving the money before purchasing - rather than using credit, the account structure puts those deposits at risk once the savings goals are reached. What will the Bank's follow-up efforts look like with those customers to continue saving?

The account looks to be part of a series of changes at Americana Community Bank - as noted on the Bank's website, it looks like a new site, new products and new look are in the works.

What kind of financial guidance are you offering Gen Y?

Yesterday’s Marketing Daily featured the article “Gen Y is Going to Need Financial Guidance More Than Most.” Citing outstanding student loans, credit card debt and lack of savings, it’s easy to see why Generation Y may need some guidance to navigate these challenges.

So, what kind of financial guidance are you offering Gen Y?

The article makes a good point about life-stage goals – with Susan Menke, senior financial services analyst at Mintel giving the example that “Many Gen Y consumers have a picture of where they’d like to be financially by the time they’re 35. Often, that picture includes owning a house, having children and being free of student loan debt.” She goes on to say “They key is to build your model so that you’re targeting both short-term profit and log-term profit potential.”

Looking at Generation Y’s current life-stage (many are high school or college students, or recent graduates starting careers), and the challenges many are currently facing – like the student loans, credit card debt and lack of savings, as mentioned in the article – gives us some direction as to what kind of financial guidance Gen Y needs now, in the short-term. Gen Y needs a plan to pay off their debts; and many need a reason to start saving their money. This is where life-stage goals like buying a car or home, or saving for a vacation or retirement can become part of the financial guidance your institution offers.

And, depending on your market, offering financial guidance to Gen Y may also require that you think beyond the traditional in-branch meeting with a personal banker. As an example, how will your institution offer financial guidance to Gen Y through your website or other venues?

If you aren’t currently offering any overt financial guidance, education or planning tools for Generation Y, it may be time to start thinking about doing so. With Gen Y expected to become more lucrative in the coming years, the relationships established with them now – especially during important life-stage events, like buying a first home, should be looked at relative to both short-term and long-term opportunities.

The Impact of Mobile Banking on Your Brand

Jeff Stephens at Creative Brand Communications recently posted a question on Banktastic about the impact of mobile banking on branding for banks and credit unions. With projections of 100 million US consumers using mobile banking by 2012 (cited by Javelin Research in a Business Week article last month) it is no wonder that the industry is scrambling to take advantage of the latest technology. Today mobile banking is an emerging technology…tomorrow, can we say “me-too”?! What do you think? Will the offer of (or failure to offer) mobile banking impact your brand in the mind's of your customer?