Hot Bank Marketing Tips

by Rick Wemmers, BOL Guru
BIO AND CONTACT INFO

Growth Tip - New research shows wealthy Americans are using the Internet more and more to set up new banking accounts. 19% of households with income of $70,000 + have recently set up an on-line account. Most bankers however are not happy with their online service results. The problem is primarily due to poor understanding of how banks need to promote this service and to whom. If your online program isn?t meeting goals, seek professional help on how to make it work.

Growth Tip - Increased fee income is guaranteed with a new credit card tied to home equity. This card capitalizes on current shopping habits and the current economy. It also adds unique customer value to the offering bank. It costs almost nothing to get this service up an running in most any bank.

The Hispanic and Latino populations have very special and different needs when it comes to banking relationships. Don?t ignore this growing population segment. It takes more than just translating messages. Investigate the penetration of this segment in your market. Don?t be left behind when bigger banks capture these valuable customers.

Bank Market Share Loss is becoming more apparent. While profits overall may be up, close examination of individual market shares by banks, tells a different story. Some of the market leaders have been hurt by smaller shareholders. If you haven?t checked your share ratings lately, do so now.

Strategic Planning is beginning to get attention at most banks. Unfortunately most CEOs talk more about it than put it into action. A recent survey showed bank CEOs were unhappy with the results of strategic planning. My banking experience suggests there are four major flaws, usually, to building a bank strategic plan:

Failure to leverage employee input, strengths
Poor retreat planning and execution
Dominating personalities
Poor follow-through after the plan is written

While ?consultant? is not a popular word, a good one can do wonders to helping make a strategic plan work and bring new profits to the bank. Most employees are intimidate, even senior officers, when the CEO leads a discussion.

Some Interesting Bank Facts

US banks have spent over $700 million, segmenting customer markets. 60% don?t see positive results.
Some 30% of American millionaires manage their wealth by themselves.
Finance companies are losing their share of consumer credit balances.
Banks on the FDIC ?problem list? rose to 102 in early 2002.
Savings Institutions earned more profits in 2001 than in ever before.
Debit card usage is climbing rapidly.
Bank robberies rose 9.4% in 2001 over 2000.
15% of US household total of 101.4 million don?t have bank relationship
40% of US small business owners are unhappy with their bank service.
Average household debt for those 65+ was $20,302 in 2001

Rick Wemmers is available for sales coaching and strategic retreat facilitation.

First published on BankersOnline.com 7/29/02