June 2016

10 Ways To Earn A Customer Love Letter

Memorable Banking

Go take a look at all the adoring letters and emails your bank has received over the past year. If you don’t have too many, we can tell you why. If you do have them, look at what prompted your customer to write them. We would bet that not one is from a customer thanking you for a low rate on the loan or an above market rate on a deposit. In our experience, customer thank you letters are never about rates, term, product or branches. They are not about the inputs to banking, but about the outputs.


A Must Have Bank Product Recommendation Algorithm For Small Business

Banking Technology

The other day we met with an investor that was impressed by a next best product algorithm that informs the small business what other products they should be using. The investor commented that this “recommendation engine defies the recommendation engines that are “Amazon-like”” and is one of the best they have seen. They were impressed by how often the recommendations are taken and wanted to know how the calculations were designed and what data the bank was using. We just laughed.


10 Takeaways From The OCC Conference On Responsible Innovation

OCC on Responsible Innovation

We attended a full day session at the OCC in Washington D.C. last week about responsible innovation. It was essentially a 300+ person discussion around the March white paper the OCC produced (HERE). We give the OCC props for organizing this first class workshop that brought lawyers, fintech, banks, community activists, consultants and regulators together to exchange ideas.

4 Uncommon Ways Banks Can Take Advantage Of Brexit Uncertainty

Brexit and Strategic Planning

UK referendum vote to leave the European Union was unexpected by the markets and caused some dislocation and a large amount of volatility.  For most community bankers, the outcome of the vote and the implications for the long-term prospects for the European Union are of some importance and interest, but the long-term implications for US banking system and US business are relatively minor.  Properly understood, marketed and explained, the immediate impact of the Brexi

How To Better Engineer Bank Growth

Creating a High Growth Bank Model

Growth doesn’t happen by accident. You have to put energy into it. If you don’t, the laws of business entropy take over and your customers go elsewhere, move, pass away or just plain forget about you. Most all banks understand this and try hard to gather new customers and retain the ones they already love. However, bank growth is more than a two-dimensional puzzle – it is multifaceted. More importantly, energy must be invested not only at the customer and product level but at the strategic level as well.

What Our Bank Learned From Customer Text Analysis

Sentiment Analysis using Test Analytics

Last week we pulled everything that was said about banks on social media (Twitter, Facebook, and Instagram) and ran it through a text analytics engine to see what we could learn.  This was over 1,000 posts, largely retail-focused, where we looked at word choice, subject, sentiment, style and tendencies. Our takeaway lessons are distilled below and some of the findings may help you be more proactive in heading off potential problems.




How Your Bank Needs To Change Its Marketing

Content Marketing

Chances are your bank is not producing the most valuable pieces of marketing needed to win your future customer. To prove our point, how much is your 2016 budget for content? If you are like an estimated 87% of banks, you don’t even have a budget line item for “content.” This is a critical mistake because banks sit at the crossroads of having deep content available to them, are in a trusted advisory role with their customers and have competitors that are not using content.

One Of The Best Risk / Reward Lending Sectors In Banking

Lending Sector Profitability

A couple weeks ago we ran an article on how to price loans for default volatility (HERE). In it, we discussed how to price in the variability around default risk and showed multifamily and owner occupied commercial real estate examples. Many banks saw our data on ten-year loss rates and volatility around credit cards, commercial and residential constructions and patted themselves on the back that they have no or limited exposure to each of those sectors.