How does a Bank remake itself so as to attain the prestige, the following of the likes of Apple, Disney, Harley Davidson, and Starbucks? This is the question Ken Olan, EVP / CFO of a $2 billion assets Victoria, TX based First Victoria Bank asks in his opinion post entitled Mission Possible: Creating a Category-of-One-Bank published on BAI’s Banking Strategies website. There is no doubt that retail banking is highly commoditized and without breaking out of the sameness, retail banking will continue to be plagued by cannibalization from non-traditional competitors and will eventually evolve into what Brett King refers to as ‘Utility’ services. In the article, Mr. Olan posits that “…banks need to start thinking more like category-of-one retailers and less like banks. The great companies of the world innovate more than products and services. They consistently challenge the status quo to create brands of ever greater relevance. Sometimes that [Read More...]
Banks and Credit Unions would be much better served by focusing their Customer Acquisition programs on profitable consumer demographics. It is not sexy, but it is profitable. Would you rather be profitable, continue to employ your staff, have happy customers (or members) and shareholders; or would you rather rely on the “Built it and they will come” strategy that is 100% guaranteed to fail!?
Banks and Credit Unions are now more challenged than ever in generating revenues and profits. Best strategy is to be fair, honest and direct with the consumers and customers. Success will come to those who seek out the right customers, offer the right products, provide deep insight and support, and continuously treat the customer like a VIP.