The Big Shift by Brett King

 Branding, Competition, Cross-Sale, Customer Acquisition, Customer Service, Data / Statistics, Demographics, Gen Y, Marketing, Pricing / Rates, Profitability, Strategy, Uncategorized  No Responses »
Jan 102013
 

Brett King discusses how customer behavior and technology are changing the future of financial services. The reality will challenge the thinking of traditional Bankers through a discussion of topics including: · Why customer behavior is so rapidly changing, including the four phases of disruptive change; · How community financial institutions and their branches must evolve; · Why checks are rapidly disappearing and cash is next; · Why your mobile phone will replace your wallet in the next 2-3 years; and · How financial institutions must reinvent themselves or become irrelevant    

Why Community Banks are Ill-Positioned to Serve the Cash-Less

 Competition, Cross-Sale, Customer Acquisition, Data / Statistics, Marketing, Pricing / Rates, Profitability, Strategy  2 Responses »
Dec 072012
 
Why Community Banks are Ill-Positioned to Serve the Cash-Less

Most Americans have little or no cash.  Most, it appears live paycheck to paycheck.  Schwab’s OnInvesting magazine published a story summarizing the findings of a Bankrate survey conducted in June 2012 which shows that just 25% of Americans have enough cash to support at least 6 months of living expenses. Why is this relevant to Banks and Credit Unions?  Well, for one, it validates other findings that suggest that most consumers hold less than $1,000 in deposits.  But perhaps more importantly, it suggests that the vast majority of consumers are unlikely to be interested or approvable for the vast majority of products and services that Banks and Credit Unions wish to sell. For example, we all recognize that Banks and Credit Unions typically have a good track record in lending to individuals with high credit scores, ample income, and high net worth — the traditional ‘A paper’ credit.  On the [Read More...]

Payments Offer a Unique Opportunity for Community Banks and Credit Unions to Compete and Win

 Channel, Competition, Customer Service, Payments, Pricing / Rates, Profitability, Strategy  1 Response »
Apr 232012
 
Payments Offer a Unique Opportunity for Community Banks and Credit Unions to Compete and Win

Financial Institutions – particularly Community Banks and Credit Unions – continue to face significant margin pressure, especially post Reg E and Durbin.  Boston Consulting Group (BCG) analysis predicts that Banks can expect a 2% decrease in annual revenues while transaction volumes will increase 9% annually over the next 10 years.  McKinsey & Co predicts that Durbin will result in as much as 50% margin erosion, and Oliver Wyman’s 2011 study shows that Reg E has already resulted in a 45% reduction in income, even for Banks not subject to Durbin. Louis Blatt, SVP of ACI Worldwide, in a BankNews article notes that explosion in demand for payments from Consumers and Small Businesses can be a boom for Community Banks and Credit Unions.  Digital payments offer Financial Institutions (FIs) the opportunity to compete against new entrants (such as PayPal, Square, Isis and others) who are already causing significant market disruption and applying [Read More...]

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