Online Banking On Its Way Out?

In a conversation with a banker last week, I asked about his intentions to add online account opening capabilities for his customers. And, this sparked an interesting conversation about the limitations placed on his institution's online banking platform by its core processor (the company also hosts his online banking service).

You see, this banker had been considering adding this feature to his online banking for some time – and he really saw the value in making online account opening available to his customers. But he told us he couldn't add it because his core processing company had no plans to offer online account opening as part of its services to its bank customers. I understand that it takes time to develop these technologies, but it was the rationale behind this specific company’s choice not to offer online account opening capabilities to its bank clients that was pretty shocking.

They told the bank's management that online banking was on its way out. That’s right, they told them that the regulators would certainly kill online banking in the near future, and as a result, there was no reason to make the investment in developing the technology which would allow online account opening.

Online banking on its way out? Seriously? I don't think so.

Consumer behaviors are changing rapidly - especially relative to the Internet. And, today's successful institutions are those that embrace the changes and partner with outside companies who do so as well.

BarCampBank San Francisco

On Saturday, I had the opportunity to attend the BarCampBank San Francisco conference. I had never attended a BarCampBank conference, so I was excited – and didn’t know what to expect. I must say, I was not disappointed. The conversations and group discussions were very intriguing, and the relaxed atmosphere of the whole event had everyone participating without hesitation. It was a lot of fun to join such a diverse group of people to talk trends that are taking place right now in the financial service industry.

Now when I say the group was diverse, here is what I mean. The list of attendees ran the gamut from credit union CEO’s, to college students (a total of around 60 people overall). There were people representing startup ventures, corporate marketing departments, consulting firms, and there were also some programmers in attendance. This is why there is a buzz around these BarCamp events, I think. People contribute to discussions and bring a very wide range of background and perspectives with them. I learned as much in one day (if not more) at this conference than in attending an entire weekend at a traditional conference.

If you don’t know the scoop on BarCamps, here it is right from the source:”BarCamp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos and interaction from participants.”

The beauty is that anyone can organize a BarCamp, and as long as some interest is generated and there are people who want to attend. There are no rules and no pre-decided outline of content - the topics of discussion are decided upon by the attendees the day of the conference.

Anyway, enough about what they are. The BarCampBank San Francisco was very successful overall, and we should all definitely thank Matt Iverson for organizing the event (and all others that helped make it success). There is already talk about BarCampBankSF2 happening in another six months or so, and is generating discussion by attendees.

One of the biggest points made during the day was made during various discussions - if you are going to create a successful online service for customers in today’s Web 2.0 world, it must have three components: community, trust/transparency and stickiness. In today’s generation of internet users, these are the things they are looking for in any site or service they use online.

This is important for banks and credit unions because it translates into knowing what your customers are looking for in service offerings. An institution can’t just throw a website together for the sake of having a website; it must connect with, and be meaningful to the user. An example that came about during the conference centered on providing financial advice or financial planning tools online, and why there are so many that aren’t successful. The reasons included the fact that people don’t just want a tool to spit numbers at them, they want to feel connected and have a more meaningful overall experience. They want a community of users to interact with, they want real world advice about what the tool is telling them, and they want feedback from the community about whether that advice is good or not.

A lot of what was discussed at BarCampBank San Francisco dealt with technology and trends that are happening in the financial world right now. While not all of it was presented as having a direct relationship with banks and credit unions, it is certainly reshaping the industry in some way. If you want to learn more about all of the various topics discussed at this BarCampBankSF you can visit the wiki site and check out discussion notes from participants. Also, here are some photos from the event taken by participants and posted on the flickr.

If you haven’t had a chance to participate in a BarCampBank conference, think about doing it - it is a very engaging and rewarding experience.

Direct Marketing

According to a recent Direct Marketing Association report, American financial services institutions are increasing their use of direct marketing. The $13.4 billion that U.S. banks and credit institutions spent last year on direct marketing advertising generated $178.8 billion in sales. How's that for ROI? These sales are forecast to hit $286.2 billion in 2012, according to the report.

Have an idea for us?

After reading about the latest Starbucks training sessions where each of its stores were closed for a three hour training session a few weeks back, and hearing about some of the initiatives it will be launching to get back in touch with its customers, I've been looking for examples of these initiatives coming to life in my trips since to Starbucks stores.

The one idea I particularly like, called My Starbucks Idea (Netbanker has a great write-up of how this can tie into banking) is a website that allows customers to submit ideas and feedback about all things Starbucks. And while the initiative is web-based, I was interested to see an in-store display this morning on the table with the coffee creamers.

The display is a small (8.5X11) table top with a stack of tear-off, business-card sized pieces of paper attached to it. These pieces of paper simply read "Have an idea for us?" - and, I have to admit, it intrigued me. I tore it off, and turned it over, the back simply directs you to mystarbucksidea.com.

It's not a survey. There are no questions. It simply directs you to submit your ideas to the bank's microsite.

I can definitely see the opportunity for financial institutions to offer this kind of feedback loop to their customers - and could easily be placed at teller stations or on check-write tables. In Starbucks' case, because it's such a large company, having the comments directed to one central point is a great way to keep them organized.

It's such a simple way to keep the feedback loop open for customer dialogue.

Will This Year Be the Tipping Point for Mobile Banking?

I guess that depends on who you ask, and how you define “tipping point”.

I read a report today suggesting that 2008 May Be the Tipping Point for Mobile Banking. The article focuses on research conducted by the Tower Group and brings up some interesting points about mobile banking, those likely to use it, and the technology that supports it.

But I’m not convinced that mobile banking will “move into the mainstream” this year as the article suggests. And even if it does enter the mainstream spotlight and increase awareness, I doubt that will translate into mainstream adoption by both institutions and customers.

Sure, I agree with Virginia Garcia, Research Director at Tower Group when she says “the downloads are faster, and the devices are better”, referring to cell phone technology that supports mobile banking. But what about preparation on the bank side? I’d be willing to bet that, while some institutions are planning to introduce mobile banking this year (these being the national and regional players that don’t currently offer it), many more haven’t taken that first step.

The article also quotes Garcia as saying "It's not necessarily for the mainstream customer base, but its going to grow as a factor in retaining and attracting new customers.” And, “As these bigger banks move into the regional markets, the smaller banks will have to develop technological platforms, such as mobile banking, to maintain parity and keep their customers…the competition is on a level playing field, forcing the smaller institutions to respond.”

I agree that mobile banking isn’t for the mainstream customer base. And, I also agree that smaller banks will need to take steps to stay competitive in terms of technology. But, I have a hard time thinking that mobile banking will play a significant factor in today’s institutions’ customer retention and acquisition strategies – or that banks and credit unions need to be worried about adding mobile banking to “keep their customers.”

And, even if the regional and national competition is on a level playing field offering mobile banking, the response by smaller institutions shouldn’t automatically be the addition of mobile banking just because the guy up the street is offering it.

Will mobile banking be offered by more institutions and used by more customers by the end of the year? Without a doubt.

Will 2008 be the tipping point for mobile banking? What do you think?

TD Commerce Bank Stakes its Claim: America’s Most Convenient Bank

TD Commerce Bank, the result of the TD Banknorth and Commerce Bank merger, will adopt Commerce Bank’s tagline and position itself as America’s Most Convenient Bank after the two banks come together.

TD Banknorth’s President and CEO, Bharat Masrani was quoted in a press release today about the bank’s position:

"TD Commerce Bank will own the convenience and Customer service space from Maine to Florida and will live the promise of being America's Most Convenient Bank…We will be relentlessly focused on building a better bank for Customers by staying open longer than our competitors and providing Customers with the WOW! experience they have come to expect."

This begs the question: What does it mean to be America’s Most Convenient Bank?

As far as I can tell, TD Commerce Bank’s idea of convenience focuses on the number of branches and ATMs in its delivery network; it also means staying open seven days a week and having extended hours at its branches on a daily basis. And, I can certainly see how this offers customers that live in the markets served by the bank added convenience – but what about those who don’t?

Would TD Commerce Bank be considered America’s most convenient bank to a bank customer in Savannah, GA? - Or any of the other markets along the East Coast where the bank does not currently have a presence?

The bank has made its intention clear to “own the convenience and Customer service space from Maine to Florida.” And, with convenience at TD Commerce Bank focusing so heavily on its branch and ATM presence, it will be interesting to see how it lives up to this promise.

Will we see TD Commerce Bank embark on an expansion/acquisition effort along the East Coast in the coming months?

And what about the rest of America? I don’t think many people here in Chicago have ever heard of America’s Most Convenient Bank.

ING: On Message Once Again

If you're an ING Direct customer, you recently received an email thanking you for being a customer of the bank. Not something we typically see from financial institutions. Have you ever received an email like this?

But, more important than the fact that ING is using email to stay in touch with its customers, is the fact that the bank recognized the email as an opportunity to reinforce its "save your money" message. Check out the closing of the email:


Much like my experience with the banker/baristas at the ING Cafe in Chicago, this is a great example of how ING is constantly looking for ways to remind us, both directly and indirectly, that the bank is here to help you save your money.

What message are you putting out there?

Person-to-Person Lending Sites Gain Traction with Small Businesses

In recent presentations and conversations with bankers, we've been talking quite a bit about the impact that person-to-person lending sites like Prosper.com are having on the industry. And, it's concerning that many in these audiences - usually bank executives, senior managers and marketing officers havn't heard of P2P lenders, or they have heard about them but don't consider them to part of the competitive landscape.

Yesterday's issue of the Wall Street Journal featured an article about the impact these P2P sites are having on small business lending; the article also provides a good introduction to how the person-to-person sites work. For more, check out Jim Bruene's perspective - I completely agree with him - now is the time to address the threat that P2P lending may pose to your institution.

Yes, we are shaking up the industry

Today’s issue of the Credit Union Times features an article Gen Y Entrepreneurs Shake up CU Industry, Helping to Reveal Authenticity – and, while I am not technically an entrepreneur, I am grateful to have been included alongside four other twentysomethings who are working to shake up the financial services industry.

The article offers a glimpse of what each of us are seeing out there in the industry. And, not surprisingly, there are some consistent points made by the five of us throughout the article:

• If you want to be successful targeting Generation Y, you have to be authentic – this includes everything from your brand to your messages; from your people to your customer experience.

• Technology is already reshaping the industry – from delivery channels to marketing to communications. And, today’s successful institutions will be those that can discern between the technologies that are relevant to their businesses and their markets, and those that are simply the latest hot trend.

• People – today’s institutions need to recognize the value of Generation Y employees’ perspectives. Staying relevant to younger customers and members requires the input and direction from their peers – ask your younger employees what they think, and listen to them.

As consultants, writers, and speakers, the five of us will undoubtedly continue to shake up the industry this year. Please feel free to contact me with any questions about marketing to Generation Y; and, if you haven’t already, check out the other four members of Gen Y featured in the article that are shaking up the industry:

Jeff Stephens - Creative Brand Communications

Brad Garland - The Garland Group

Matt Dean - Trabian

Bryan Simms - Brass Media

Tom Broughton’s small bank is striking it rich

This was the byline from an article about Birmingham, Alabama based ServisFirst Bank that appeared last Friday on CNNMoney.com.

Now, replace Tom’s name with yours in this statement – sounds good, doesn’t it. How are you going to “strike it rich?”

Tom Broughton is striking it rich because his bank is clearly different from the competition; and, most importantly, ServisFirst Bank is offering distinct and real value to a specific target.

The target: “busy small-business owners who want fast, personal service and are willing to pay for it.”

Now, we all know that there are plenty of financial institutions that specifically target small-business owners. And, many of them promise fast, personal service. But much like Starbucks has demonstrated with high-priced coffee, ServisFirst knows there are people out there who are “willing to pay for it” – they’re willing to pay for the real, personal service offered by the bank. And, the bank has used this focus as a framework that informs everything from its products and services to its marketing efforts to its delivery channels.

“At his Birmingham, Ala., company there are no tellers. No ATMs. No advertising. No teaser-rate CDs. No fancy offices. No lollipops in the lobby. In fact, dear customer, these bankers don’t even want to see you in the lobby. Stay in your shop. ServisFirst will come to you.”

ServisFirst serves a specific target with a specific value. And this is a great example of a team that has looked critically at all the elements of the bank and its brand – even those that are often times considered to be an expectation (i.e. ATMs, rate ads, tellers, etc.), and has made some tough, but logical choices to organize around its core value – service for small-business owners at their place of business.

Capital Bank's Tuned-In Checking

North Carolina’s Capital Bank recently launched a rewards checking account offering iTunes downlads to customers who meet a series of basic requirements (ten debit transactions per month; log on to online banking once a month; and receive statements via email).

The Tuned-In Checking Account is similar to other rewards checking accounts we’ve been hearing a lot about recently, but rather than offering a higher interest rate, the account rewards qualifying customers with $9.99 in iTunes gift cards per month.

The account is targeted at Generation Y customers – high school and college students, and young professionals. And this makes sense, as many in this group would probably rather have the iTunes every month as opposed to a higher interest rate on account balances that may not generate significant interest in the first place.


Part of the bank’s marketing efforts for the new account includes the microsite www.tunedinchecking.com. On the site, the Capital Bank image and presence is downplayed in favor of the benefits of the account: free iTunes, free ATMs; and free checking are featured prominently. The animated site speaks directly to Generation Y with its playful visuals, the language used, and the lack of traditional bank website content.

While the site does a pretty good job of promoting the Tuned-In Checking account – and even allows people to apply for the account online, I would like to see the other accounts mentioned on the site (i.e. Savings) have the same online account opening abilities. I’d also like to see the “About Us” section of the website carry the same kind of casual language as other parts of the site – as opposed to using the same language from the bank’s main site.

As we’ve seen many institutions introduce versions of rewards checking accounts recently, I’m sure we’ll continue to see variations on the theme. With this account, Capital Bank has found a way to reach Generation Y with a relevant product and compelling message to not only open the account, but to keep it open and to actively use it.

I wonder if Capital Bank gets a bulk-rate discount from Apple on those iTunes gift cards…I can imagine that they’ll be issuing quite a few in the coming months.

Change the Story

My friends and co-workers all know that I usually begin each day with my favorite espresso drink from Starbucks. I am not just an unapologetic, loyal fan of their coffee and the studiously crafted customer experience that goes with it; I am generally an enthusiast for their approach to marketing. So I am usually on the lookout for references to the company in my favorite blogs. Last week, marketing guru Seth Godin mentioned them in passing while offering his thoughts on marketing in a recession. His blog post stated:

"Starbucks was the indulgence of a confident person happy to blow $4 on a cup of coffee. Starbucks can become the small indulgence for the person who just traded down to a small rented apartment. The challenge for marketers is to figure out how to change the story they are living so that their customers can change the story they tell themselves."

Starbucks can navigate a downturn in the economy because they have become part of their customer's daily life. They can remain relevant because of the adaptability of their "story." Seth's observation prompts me to think about the "story" being told by most financial institutions these days. Do their stories have the flexibility to adjust to the conditions of the marketplace? Do they even know what their "story" is or whether it is relevant to their customer? What do you think?

A Branding Conversation with Tom Asacker

In a recent post, I talked about the ABA New England Marketing Chapters' Branding Symposium that I attended last month. The presentations, lead by Tom Asacker, author of A Clear Eye for Branding, offered some great insights and really challenged attendees to think critically about their brands.

After attending the symposium, I contacted Tom with a series of questions in hopes that he would offer his insights and perspective relative to branding and financial services. His responses to my questions follow.

BW: Why is the concept of branding so misunderstood?

TA: Great question Brady. I’ve been trying to answer that one myself for years. Kierkegaard wrote, “Concepts, like individuals, have their histories and are just as incapable of withstanding the ravages of times as are individuals.” Well, individual’s bodies may be incapable of withstanding change, but their belief systems are more than capable. And that’s what has happened with the concept of brand and branding. Many people locked onto the original marketplace concepts -brands and branding as marks of ownership and later as trademarks, logos and image advertising - and built their reputations around those concepts; e.g. logo designers, identity consultants, advertising agencies, etc. Their mindsets and business identities are now tied to those out-dated concepts, which absolutely preclude a change and serves to perpetuate the misunderstanding.

BW: Why is a clear eye for branding important?

TA: It’s not simply important, it’s critical. What is a brand? It’s something or someone that a customer chooses to be associated with, be it a brand of music player, politician, motorcycle, retail outlet, financial planner, or bank. Branding is everything a person or organization does to create and maintain a strong feeling with customers so that they are predisposed to continually choose and recommend them. Drucker wrote, “There is only one valid definition of business purpose: to create a customer.” Understanding how and why customers choose, as well as how to appeal to that decision-making process, is what having a clear eye for branding is all about.

BW: What does it mean for today’s banks and credit unions to have a clear eye for branding?

TA: Ultimately, it means that they have a visceral understanding of how to intelligently invest their time and money to attract and retain customers, with everything from the design of their outlets and web sites, to their employee training, marketing communications, product and service offerings, and community outreach. Today’s is a much more challenging marketplace than even the recent past. And given the latest economic outlook, and the fact that more than 95 percent of the households in the United States already have an active banking relationship, organizations that fail to recognize and adjust to the new consumer mindset are destined for failure. Or worse, they’ll become one more of the living-dead, with a relentless and stifling focus on cutting costs and downsizing. As a long-term brand strategy, operational efficiency is seldom the path to greatness.

BW: What companies – and specifically financial institutions, do you see demonstrating this level of thinking in terms of brand?

TA: I find it interesting that no financial institution springs readily to mind. What could possibly be more emotionally compelling to customers than their futures and financial well-being? Coffee? That being said, there are a few who are pushing the idea of fanatical commitment to "wowing" its customers and employees, for example Umpqua Bank and Commerce One.

BW: What barriers to you see facing community banks and credit unions when it comes to branding? And, what steps can executives and marketers take to overcome these barriers?

TA: The only true barriers are mindset and will. Seek first to understand, and then have the audacity to do what you know is right.

Sleepy Markets and Tired Brands

I have spent the last few days at the ABA National Conference for Community Bankers in Orlando (which is a welcome break from winter in Chicago).

During my conversations with some of the bankers here, I’ve heard quite a few refer to their markets as dead, stagnant, slow, or sleepy. The attendees at this conference are community bankers, and many serve small communities, so I’m not surprised that they’re using these words to describe their markets - they're all over the country.

But, it was interesting to hear one banker in particular banker talk not about his "sleepy market", but about his "tired brand". I found this interesting for a couple reasons.

First, tired implies exhaustion, like his brand has been allowed to go unchanged for too long (In our experience this is extremely common – the “if it ain’t broke, don’t fix it” mentality). It’s exhausted, outdated, dull, mediocre and in dire need of a refresh, a jump-start, a critical evaluation. As a result of being tired, his brand isn’t having the impact he would like; it’s not creating the right perceptions; and it’s not allowing his customers to have the experience he would like them to have. I'd bet that his tired brand is becoming irrelevant to his market.

Perhaps more interesting than describing his brand as “tired”, is the fact that this guy recognizes that his brand is not as strong as it could be, or should be. Keeping a pulse on your institution and your brand, or taking the time to critically evaluate each, is critical to your institution’s success – especially in today’s marketplace where changes are happening faster than ever.

Over the last year, we have all seen branding become a buzzword – and I’ve seen a lot of bankers simply dismiss the idea or write it off as an industry-fad. In fact, I have seen it here at this conference – with bankers saying things like “I know branding is what everybody is supposed to be doing this year.”

It’s is not a one-time deal. As long as you’re in business, you have a brand that needs constant attention and the occasional refresh to keep it awake and relevant to the markets you serve – regardless of if your market is sleepy or not.

Umpqua Bank's Innovation Lab

Last week, I had the opportunity to check out Umpqua Bank’s latest branch concept – the Innovation Lab, and overall, I was pretty impressed.

From the press release Umpqua Bank put out about the branch:

“The store will serve as Umpqua’s Innovation Lab, showcasing emerging and existing technologies that foster community and redefine what consumers can expect from a banking experience. As a testing ground for new initiatives, the Lab will change regularly to feature new technology, products, services and community events.”

Complete with huge 25-foot interactive touch screens, merchandise on display for purchase, and customized computer stations, the branch looks quite different from the traditional bank branch.

Some of the more notable features include:

• Café style tables that serve as both a traditional table and as a computer station. The table top can be lifted open to give customers access to a laptop inside. The design gives customers the privacy they need while banking online in the branch and keeps the branch looking clean when the computers are not in use.
• The community table in the center of the lobby seats about 12 people and can be used as a meeting place for organizations or groups of people who need to get together. The branch manager told us that the table is used about 6 nights a week.
• You can’t miss the two huge interactive touch screens when you walk into the branch. One serves to display product information; the other is community-based which displays photos that customers submit themselves – it’s like a modern-day community bulletin board. The best part about the screens is that they are used for Nintendo Wii tournaments; the night of our visit, the bank was hosting a bowling tournament.
• Merchandise. Walking into the branch, you can’t help but run into the tables in the lobby displaying Umpqua Bank t-shirts, hats, and coffee cups. And, one table is set up to display the merchandise of local businesses/artists – which, I would imagine, is changed on an ongoing basis.

Overall, I was impressed with the branch – its layout, look and feel, and incorporation of technology. I think a lot of people visiting the branch (or seeing it in the news) will also be impressed; which raises a red flag for me. While Umpqua Bank has taken steps to explore the use of new technologies like the touch screens in its branches, it's an approach that simply won't translate well at many community banks across the country.

Like ING Direct with its cafes, Umpqua Bank is pushing the envelope in terms of its branch design and customer experience with the Innovation Lab. And after visiting either, you can see how each is aligned with their respective brands – and how the individual elements they’ve included in their branch designs (i.e. coffee bar with baristas, touch screens, etc.) simply will not translate well in other markets with other companies.

Umpqua Bank and ING Direct have given people something unexpected - and something for people to talk about. And while we've seen many bankers attempt to incorporate elements of either company's branch design into their own, successful financial institutions will be those that can generate buzz with something new, unique and reflective of their institution's brand and market.

Branding: "What's the first step?"

Last Friday, I attended a day-long branding seminar put on by the ABA New England Bank Marketing Chapter. The sessions, led by Tom Asacker – author of “A Clear Eye for Branding”, were very different (in a good way) from other branding conversations I have been a part of at other banking conferences.

Tom pushed the audience to think differently about their institutions and brands. And, throughout his presentations he emphasized the importance of how brands make people feel – which he discussed, goes well beyond simply what people think about your company and brand. As you can imagine, this challenged the bankers in the room; when was the last time you thought about how your bank makes your customers feel?

Late in the day, Tom opened the floor for questions. And, not surprisingly, someone in the audience asked “What’s the first step?” – What’s the first step we, as community bankers, can take to bring clarity, strength and focus to our brands?

Tom handled the question very well.

He told the audience that the first step is having the passion and commitment – and a shared mindset among your team to really get the job done. Referring to a concept he discussed earlier in his presentation about the difference between formula and framework, Tom reminded us that there is no specific formula you can follow to bring clarity to your brand.

Rather, he presented a framework of elements that are necessary in building a successful brand; these elements include:

1. Be Close (to your customer and target market) – and being close is not as simple as proximity; it means allowing yourself to be close enough to your customers and your target to feel what they’re feeling

2. Be Different (in the consumers' eyes) – be unique; be compelling. Stop focusing on trying to be better, faster, etc. than your competition and just be different

3. Be Relevant –be relevant to your target market within the context of your market and your competition

4. Be Real (once again, from the consumers' perspective) – align your brand with authentic human qualities; let your customers see your human face

I think Tom is right; these points serve as a great framework for bankers to evaluate and strengthen their brands. While many banks will continue to conduct business as usual - with little, or no attention paid to strengthening their brands - those that can strengthen their brand, their position and their connection with their target market will be those that can remain relevant and grow in today's increasingly competitive marketplace.

A Bold New Look

There was a news story this morning announcing that Washington Mutual is launching a new version of their website, www.wamu.com. Their stated purpose for this upgrade is to make “the customer's online banking experience simpler, faster and more personalized.” We’ve been talking a lot lately about the importance of relevancy and growth. While I’m not certain their new site gets the job done; I was pleased to see that they are clearly paying attention to two important aspects of remaining relevant: 1) they know that their marketing must remain dynamic; and 2) they understand the customer is at the center of all they do. When was the last time you updated your website? (and yes, by the way, our website is under revision…stay tuned).

One thing their new website does that helps ensure relevancy: they ask "what do you think about the new wamu.com?" They invite feedback. If they have taken steps to show they listen to the feedback they receive, they are well on their way to staying relevant.

Who is setting your customers' expectations?

Trendwatching.com's February Trend Briefing highlights the expectation economy which it has defined as:

“An economy inhabited by experienced, well-informed customers…who have a long list of high expectations that they apply to each and every good, service and experience on offer.”

This includes financial services. And while the expectation economy does not include all consumers, evidence that financial institutions are taking notice of this group is evident in everything from the elimination of traditional teller lines at some banks and credit unions to the installation of lobby coffee bars in others.

Perhaps the most interesting point made in the article, and one which I think is often overlooked by financial services executives and marketers, is that expectations are often set outside your industry - in our case, bank customers' and credit union members' expectations are driven, in some part, by experiences outside of financial services. The article cites “Singapore Airlines’ sense of status, Starbucks’ understanding of indulgence and rituals, H&M’s obsession with making up-to-the-minute fashion affordable, or Apple’s prowess in design and usability” as examples of companies that are driving consumer expectations across the country.

Whether it’s industry leaders like these examples, or a local business in your community offering value above and beyond the expected, it's important to realize that your customers’ expectations of you and your institution are not necessarily driven by anything within your direct control. And, that you recognize opportunities where you can bring the customer experience your institution offers more in-line with these expectations.

We are all consumers; and we all have experiences with retailers, restaurants and other businesses that shape our expectations. Rather than relying on peer-to-peer comparisons to drive decisions (the article also goes as far as to say that “just copying competitors is a race to the bottom), financial services executives and marketers can benefit greatly from understanding their customers’ expectations, not only of financial institutions, but as consumers in general.

Depending on your market and your customers, you may find that their expectations are shaped by experiences like the ease of use and instant gratification of a program like Apple’s iTunes; or, they may be influenced by the personalized experience Starbucks offers in customizing their drink order and calling them by name. Whatever the case, financial institutions can play to these shifting expectations; first, by being more aware of them – and by finding relevant ways to incorporate them into the ways they conduct business.

No Fear!

Patience and Opportunity – Not Fear!

There has never been a better opportunity to help your customers within the financial services arena. While stories of fear and lack dominate the news and continue to scare your customers and perhaps making them apprehensive of getting a mortgage or buying a new car, I invite you to practice some patience and help them to navigate the challenges which may lie ahead.

The needs that create the demand for many financial products and services have not gone away; they have in some instances merely been postponed. Regardless of the bumps in the economy that may cause one to pause and sit back – your customers still need to educate their children and pay for college, they still need to buy or refinance homes, purchase new cars and they still need a place to keep their money from which to pay their bills. Their timing may be just a bit off from yours.

I am advocating for more of what I call “Short Term – Long Term” thinking. Now may be the best time for many banks and credit unions to be educating their customers on how to manage their finances during the months ahead. By doing so, by taking care of the short term worries of customers, long term seeds are being planted about your financial institution being seen as helpful, about being a partner in their long term success, so when the time to buy a house does indeed arrive, you are there for them. The great opportunity during this time is helping navigate customers to new ways of thinking.

For example, while Ford and GM are whining about the high cost of gasoline and the impact on the sales of their large gas guzzling SUVs’, Honda and Toyota have been busy developing fuel efficient cars and mini SUVs that appeal to customers. While many banks are complaining about the need for more checking accounts, ING has created its “Orange Account”, (www. ING.com) a totally online checking and/or savings account which pays a great rate of interest, without the hassle of visiting a branch to open the account.

Both of these examples illustrate the power of businesses to transform what they do and what they offer and to capitalize on the challenging business climate and turn it to their advantage. I invite you to view the current economic client and the impact on your business, not as “rough times” but as times that are simply “different”. What are you doing to turn this current economic cycle to the advantage of your customers and your business?

Buzz is Relative

We talk quite a bit about creating buzz when we’re talking to executives and marketers about their marketing efforts. During a meeting last week with a client in Texas, I was reminded that buzz is relative (small-town-Texas-buzz is very different from Chicago-buzz).

While the concept of buzz may be the same, the process of actually generating buzz depends quite a bit on your market. In the case of this small town client, everyone in town knows everyone else – and word spreads like wildfire. As a result, management of peoples' perceptions becomes very important.

In any case, if your looking to generate buzz, your message needs to be buzzworthy. I first heard the term “buzzworthy” years ago on MTV; the station’s Buzzworthy Blog actually has a great definition of the term:

“speculative or excited talk or attention relating to music and culture of sufficient worth or importance”

In the case of your institution, you won’t be generating excited talk or attention around music and culture; instead, depending on your market, you may generate this kind of talk and attention when you open a new branch; or for your involvement with a Habitat for Humanity project; or because of your financial education program for high school students.

What’s buzzworthy in your market?

Are your marketing efforts communicating something of sufficient worth or importance to your target market? Is it enough to generate speculative or excited talk or attention in your community?