Reality Check

Most financial institutions state growth as one of their goals every year, and 77.8% view branching as their chief avenue to grow. Institutions are seeing mixed results; however, because branching is no longer an automatic success. Instead, many institutions are turning to organic solutions such as differentiation. We at Market Insights are encouraged by this, because it’s something we’ve been talking about for years.

Still, most institutions are spending a lot of time, money and energy pointing out the differences between organizational structures and ownership, and virtually no time pointing out the things that make their institutions unique. They haven’t seen the results that they expected, and now they’re wondering, why?

CALLING ALL CREDIT UNIONS AND LOCALLY OWNED COMMUNITY BANKS

It’s time for a reality check. It’s time to check in with how consumers view you. Step out from behind the teller line, away from your desk, out of the office and separate yourself from everything connected to your job.

Now ask yourself:

Do you care what type of institution holds your checking account? Does it matter who’s paying that 5% on your CD? How much of the interest from your loan do you expect to benefit from through Community Reinvestment?

The simple answers to these questions for most consumers are: No. No. and Huh?

It’s time to take that rare, proactive approach to answer the public’s age old question of, “What does that mean to me?” Customers, members, and clients alike have a hard time connecting with the classification of any institution, because quite frankly, they don’t see how it affects them. If you can show the general public some real value (in their eyes, not yours), then you can start to build a case for your institution.

Where do you start? Avoid the Credit Union vs. Bank and the Community Bank vs. National Bank comparisons; and instead, focus on how your individual institution is different from every other institution in Bankland. Figure out what you can provide that is truly unique to your institution. Then figure out how to communicate your uniqueness to the public. After all, your most compelling case for Community Banks is also a compelling case for your Community Bank competitors.