Bank Marketing News

Do Credit Unions offer More than Banks?

2011-09-26T15:22:52Z

September 18, 2011: According to data recently available from CUNA, credit unions are more likely than a typical bank to offer new auto loans and credit cards. Credit Unions, in terms of percentages of institutions, may be less likely to offer ATM access, mortgages and IRAs.

CUNA’s summary data shows the following percentage of credit unions offering:

New Auto Loans 95

Online Banking: 67

IRAs: 65

ATM Access 63

First Mortgages 60

Credit Cards 52

Check Cashing 51

Overdraft Lines of credit 44

Source: Credit Union National Association and National Credit Union Association data, year-end 2010, as report in the WSJ, September 18, 2011

“Thank you for remembering me!” say Loyal Customers

2011-09-23T21:16:05Z

San Francisco, CA/September 14, 2011: Customers, who receive good service at one branch, tend to hold a high positive opinion for the entire bank according to a new survey from 3VR, a video intelligence company. And what constitutes good service? Name recognition.

According to the 3VR survey report, 76% percent of customers who are greeted by name when they visit a bank branch believe that they are loyal customers of that bank.

Name recognition by bank tellers is an easy way for banks to bolster their relationships with customers. 3VR’s survey also found that 69% of respondents said that their customer loyalty is positively affected by tellers recognizing them by name when they walked into a bank.

3VR supplies video surveillance equipment that can analyze the video feeds and supply tellers the names of customers before visiting a teller station.

"Our polling highlights how customer service drives customer loyalty. Increasingly, video intelligence technologies are allowing financial institutions to creatively leverage their existing video surveillance investments beyond just security," said Al Shipp, CEO of 3VR. "The ability for banks to use video to recognize customers by name, reward the most valuable customers, meet suspicious activity, report compliance requirements and curb fraud, is quickly up-leveling the role of video in the IT ecosystem from a cost center to a revenue generator."

In addition, consumers support the use of advanced technologies to deliver better customer service as 78 percent of those surveyed said that they are comfortable with financial institutions using cameras in their branches to better serve their customers.

The polling firm, Zogby463, polled 2,153 adults in August 2011 for 3VR. The poll has a margin of error of +/- 2.2 percent.

3VR provides video surveillance for banks and is based in San Francisco, CA. www.3vr.com.

Source: 3VR

Get Rid of Rewards? Not at KeyBank

2011-09-23T02:03:45Z

CLEVELAND, Sept. 20, 2011 /PRNewswire/ -- At a time when many competitors are eliminating or de-emphasizing their customer rewards programs, KeyBank is launching a new and expanded program that will reward customers for taking advantage of Key's full range of services.

Beginning this week, KeyBank Relationship Rewards will be Key's exclusive customer rewards program, replacing the existing KeyBank Rewards and Key Miles programs. The expanded program will reward customers for using a variety of services from debit card payments to automated bill paying.

"Above all else, Key is a relationship bank, and we want our customers to view Key as their primary bank," said Bill Koehler, president, Key Community Banking. "To fulfill that role, we offer the product variety and flexibility to meet a wide range of our customers' needs, and we will now reward our best customers for using those services. KeyBank Relationship Rewards focuses on the total relationship rather than just a single activity such as debit card spending. This differentiates Key from many of our competitors who are scaling back their rewards programs."

Banks Respond to New Fee Limits

To help offset the impact of new federal regulations that limit the fee income banks can receive from debit card transactions, 81% of banks polled by the American Bankers Association said they are planning to cut their debit card rewards programs in addition to raising fees and other actions. The regulations limiting debit fee income stem from the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law on July 21, 2010.

Key's approach, on the other hand, has been to create a more compelling value proposition and reward customer relationships by offering new products, greater flexibility and expanded benefits. The newly enhanced rewards program is the latest example of Key's effort to promote growth in its relationships as the primary bank for its customers. Last year, Key rolled out a variety of new checking account products to offer more options and flexibility within the changing regulatory landscape.

Under the KeyBank Relationship Rewards program, customers will earn rewards for a broad range of activities including:

Using a debit card
Paying bills online
Making deposits at an ATM
Receiving statements electronically
Setting up direct deposit of a paycheck
Opening new savings or lending accounts (effective 12/9/2011)

After accumulating points through these activities, customers will be able to redeem their points for a wide variety of rewards ranging from retail gift cards, electronics and accessories, to airline, hotel, rental car, theme park and cruise discounts. For more, go to www.key.com/rewards .

For videos of customer examples, visit www.key.com/getrewards.

All Key Miles participants and certain KeyBank Rewards participants will automatically be upgraded to the new Relationship Rewards program; other KeyBank Rewards participants will need to visit a branch to enroll in the new program. Customers participating in the existing programs have been notified of the changes.

"The KeyBank Relationship Rewards program reflects our commitment to listen to customers and take their feedback into account in developing products and services that best match their changing banking needs," Koehler said. "Our enhanced rewards program will allow us to provide additional value and sharpen our focus on serving as our customers' primary bank."

Small and Mid-Sized Companies Opting For "Human Touch"

2011-09-16T16:46:05Z

September 12, 2011 Stamford, CT: In an apparent turnaround of a seemingly irreversible trend, small businesses and mid-sized companies now strongly prefer personal service over Internet banking channels.

According to new research from Greenwich Associates, almost 3 out of 4 small businesses (71%) say that their relationship manager is their single most important point of contact with their bank.

Greenwich, which has trended channel preferences since the 1990s, had previously found that by December 2009, both small businesses and mid-sized companies ranked their banks' Internet platforms as having equal or greater importance than branch personnel in their interactions with their banks.

From late 2009 to July 2011, however, companies began putting more stock in the "human touch.” Over that period, the share of small businesses citing the Internet platform as the single most important point of interaction with their bank declined to 18% from 24% and the share of mid-sized companies naming the Internet as their most important banking channel dropped to 21% from 25%. Meanwhile, the share of small businesses naming their relationship manager as their most important point of contact jumped to 53% from 48%; among mid-sized companies that share increased to 71% in July 2011 from 60% in December 2009.

"Before the start of the [recent economic] crisis, it was easy for companies to put their bank relationships on auto-pilot, with direct interactions initiated by companies mainly in connection with important events like loan applications, and with banks reaching out mainly in connection with new product sales," says Greenwich Associates consultant Duncan Banfield. "Today, companies need help solving broader business problems, and our data shows that they have stepped up interactions with bank relationship managers as part of that effort."

Banfield notes that despite stated preferences, the Internet remains by far the most frequently used bank channel by U.S. businesses. Among small businesses, 70% say the Internet is the means by which they most frequently interact with their banks. For 84% of mid-sized companies, the Internet is the mostly frequently accessed channel. Among small businesses and mid-sized companies utilize the Internet to investigate the status of unpaid checks, initiate payments, request statement copies or view balance reports, issue a stop pay order, add or delete employees from payroll, and view paid check images.

A Banking Opportunity?

According to the Greenwich survey, only about one-third of small businesses say their banks have provided any advice on how to improve cash flow efficiency. While slightly more than half of mid-sized companies say their banks have initiated meetings to review and try to improve their cash flow situation, a full 46% of these companies say they've received no such advice from their banks. The switch in preferences from the Internet to personal contact, could mean that more businesses are concerned about their access to credit. Banks could be taking advantage of this heightened sensitivity to build relationships and trust by initiating conversations to offering advice and cross-sell additional services.

Source: Greenwich Associates

"ONE MILLION DOLLARS!" The Most Devious Money-Making Schemes in the James Bond Movies

2011-09-15T01:59:55Z

Considered one of the foremost authorities on James Bond, Raymond Benson penned and published six original 007 novels, three film novelizations, and three short stories about the world's greatest secret agent.

Benson's latest original suspense novel is THE BLACK STILETTO, the first in a series relaying the story of a female masked crusader in the late fifties and early sixties. A fast paced thriller, but also a compelling tale of personal relationships and of a women's struggle to live her life on her own terms. Reviews have been terrific! Visit www.raymondbenson.com

[This is a reprint of a Bank Marketing News Article originally printed in March 2009]

The name may be "Bond...James Bond," but very often the guys who walk away with the films are the villains.

The 007 motion picture series, produced by EON Productions since 1962, have given us a motley crew of baddies--who may or may not have stepped from the pages of Ian Fleming's original novels. In most cases, the film series used Fleming's characters and plot basics to come up with entirely new scenarios. And, in at least one instance, the evil-doer's scheme even trumped Fleming's initial idea. Of course, there are many Bond plots in which the adversary simply wants world domination, not necessarily on a financial scale, but rather on a geo-political one. These are the most preposterous ruses, and for the most part EON Productions has thankfully veered away from these types of ploys since the 1970s. In a recent interview, co-producer Michael G. Wilson said that the villain’s plot should always be about making money--if the scheme doesn’t make a profit, then why do it?

Thus, herewith are the five most ingenious and nefarious money-making schemes that have appeared in the Bond movies. (Note: by listing these titles, I am not necessarily saying these are the five best Bond films--not by a long shot. The plots of other truly excellent Bond films such as Goldfinger and Thunderball, Dr. No, From Russia with Love, On Her Majesty’s Secret Service, and in 2006, Casino Royale, do not really fit in with the "money-making schemes" criteria) certainly belong on a list of 007 Bests, but not the others.)

Goldfinger (1964) is probably the most quintessential Bond film of them all, the one that first brought in the box-office gold, so to speak. It helped that the picture had one of the best (if not the best) villain in the series—Auric Goldfinger, a Latvian working in Britain as a metallurgist and furniture maker. In the novel, he is working for SMERSH, but in the film he is independent. Played by German actor Gert Frobe, Goldfinger is obsessed with gold and has the largest privately-owned stock of the valuable metal in England. The villain has purchased an atomic bomb from the Red Chinese, has smuggled it into the United States, and plans to detonate it inside of Ft. Knox in Kentucky. This would cause America's gold supply to be radioactive for decades, thus increasing the value of Goldfinger’s own supply. One of the richest men in the world would then be the richest. This scheme is actually one of the only improvements the film series made over Ian Fleming's plots—in the original novel, Goldfinger simply wanted to rob Ft. Knox, which, of course, would be impossible.

Thunderball (1965) features the international crime organization SPECTRE (the Special Executive for Counter-intelligence, Terrorism, Revenge, and Extortion), led by the dastardly Ernst Stavro Blofeld, who appeared in several of the early Bond films (the actor’s face is hidden in this picture). Most of Blofeld's schemes were off-the-charts, megalomaniacal pipe dreams more akin to the Austin Powers movies—in fact, "Dr. Evil" is based on Blofeld. However, in Thunderball, we are presented with a very realistic--and terrifying--scenario that is even more plausible today than it was in the sixties. SPECTRE, by substituting a double for a NATO bomber pilot, hijacks two nuclear weapons and hides them in an underwater cave near the Bahamas. They then ask for a ransom from the United States and Great Britain--or they will destroy a couple of major cities. Ouch.

Tomorrow Never Dies (1997) was produced from an original screenplay, not based on any Fleming material. In it, Elliot Carver (Jonathan Pryce), a British media mogul plans to instigate a war between Britain and China, thereby pushing out the current Chinese leader and implanting Carver's cohort who has made a deal with him for the Carver Media Group Network to have exclusive broadcasting rights in China. Carver smells a fortune. He aims to do this by using a stealth submarine to fire torpedoes at both British and Chinese warships--but making it appear that the other superpower was responsible for each hit. Far-fetched, certainly, but an intriguing and fascinating scheme to ponder, especially in light of the influence held by such real-life media moguls as Rupert Murdoch or Robert Maxwell.

GoldenEye (1995), also filmed from an original screenplay, introduces audiences to the power of the electromagnetic pulse which can render useless any electronic device with powerful, explosive surges. The ESP is fired from two orbiting Russian satellites, each called a GoldenEye. Alec Trevelyan (Sean Bean) is a former Double-O agent, believed dead, now working for a Russian crime syndicate. His goal is to use the GoldenEye to wipe out the Bank of England’s funds (he has a personal beef with the U.K.) and transfer them into his own coffers. He must first obtain the keys that operate the satellites. His team hijacks a stealth helicopter (that can withstand the ESP) and flies it to the Russian base that controls the GoldenEyes. He engineers an ESP blast to destroy the control center, leaving the stealth chopper to throw off the authorities' scent. With the keys in hand, it is only a matter of the right time--and from the right location--that he can maneuver the satellite in position to hit Britain. Again, far-fetched, but not entirely unfeasible. Ian Fleming liked to say that he didn’t mind if his own plots were “improbable,” as long as they weren't "impossible."

A View to a Kill (1985), another original screenplay with no Fleming material save for a bastardized short-story title, focused on Silicon Valley during the mid-eighties--the hot spot of future wealth. Bad guy Max Zorin (Christopher Walken), already a multi-millionaire in the field of microchips, considers the Valley his only rival. What to do? Destroy it with an earthquake! He plans to do this by setting off powerful bombs inside mine shafts lining the San Andreas Fault. Yes, it’s similar to what Goldfinger was planning to do, only with microchips instead of gold, but it's a scheme that works--eliminate the competition and you’re the only game in town.

James Bond films have now been with us for five decades. They represent the most successful--both in longevity and monetarily--film franchise made by one production company in cinema history. Perhaps that’s the real key to a dastardly villainous plot--make popular movies.

****

Raymond Benson is the author of twenty published books. Between 1996 and 2002, Benson was commissioned by the James Bond literary copyright holders to take over writing the 007 novels. In total he penned and published worldwide six original 007 novels, three film novelizations, and three short stories. An anthology of some of his Bond work, THE UNION TRILOGY, was published in November 2008. Benson's most recent original suspense novels are A HARD DAY'S DEATH, the first in a series of rock 'n roll thrillers, published in 2008, and its sequel, DARK SIDE OF THE MORGUE, published in March 2009. These books are available in stores, at Amazon, or through the author’s website at www.raymondbenson.com.

Do Customers Age 55+ Now Prefer the Internet over Branches?

2011-09-08T22:15:18Z

September 8, 2001/Washington, D.C.: A new survey by the American Bankers Association has recorded a dramatic shift in the preference for Internet Banking over all other delivery channels. But it may depend upon who, or how, you ask.

According to the new survey, for the first time a majority of adults age 55 and up prefer to do their banking online over any other method, 57% compared to 20% a year earlier.

Among all adults, 62% this year prefer Internet Banking compared to just 36% last year.

While the continued shift towards Internet Banking as a preferred delivery channel has been evident for several years, 2011's change to the trend line was unusually steep. While the ABA has not offered any official explanation for the jump in preferences, this year’s survey was the first time the data was collected on-line. All previous surveys were conducted by telephone. Responses could be biased as they are based solely on Internet users and do not include those who infrequently respond to Internet or email survey requests.

ABA has conducted the channel survey annually since 1998. The survey of more than 2,000 U.S. adults, conducted August 12-14, 2011 by Ipsos Public Affairs, an independent market research firm. The margin of error was +/- 2.2 percent.

Other highlights of the 2011 survey include:

Internet Banking (laptop or PC) – 62% (36% in 2010)

Branches – 20% (25% in 2010)

ATMs – 8% (15% in 2010)

Mail – 6% (8% in 2010)

Telephone - 3% (6% in 2010)

Mobile (cell phone, Blackberry, PDA, I-Pad, etc.) – 1% (3% in 2010)

“These survey results hammer home the point that retail banking has changed for good,” said Nessa Feddis, ABA senior counsel and retail banking expert. “They tell us for the first time that customers of all age groups prefer the speed and convenience of conducting their banking transactions on the Internet to visiting their local branch or ATM. They also tell us that customers trust the accuracy and security of online banking,” she added.

“Online banking may be the most preferred method of banking but banks are still committed to providing multiple choices to serve the needs of all customers. Bank customers will continue to have the choice to use branches, ATMS, telephone, mobile devices or the Internet to conduct their transactions – whichever they find most convenient for them,” Feddis said.

Source: American Bankers Association

Think your customers are willing to pay fees?

2011-09-02T19:46:23Z

WASHINGTON, September 1, 2011: Almost three out of every 4 bank customers –71%–choose account services that help them avoid paying fees, according to a new survey by the American Bankers Association.

When it comes to checking account monthly fees and ATM access, 82% of consumers spend $3 or less each month.

"It's impressive that so many customers avoid paying any bank fees," said Nessa Feddis, ABA vice president, senior federal counsel and retail banking expert. "It shows that consumers are savvy and able to navigate the new banking landscape with skill. Often, avoiding bank fees can be as simple as maintaining a minimum balance or accepting a paycheck by direct deposit," Feddis added.

When asked to estimate the amount spent each month on service fees for checking and ATM access, the survey respondents provided the following responses:

71% said they pay nothing;
11% said $3 or less;
6% said $4 to $6;
4% said $7 to $9; and
7% said they pay $10 or more.

"Consumers should know that bank accounts cost little or nothing for most people," Feddis said. "And people who keep their money in a bank can feel comfortable knowing that it's insured, can't get stolen, lost, or destroyed, and is available to make payments or get cash 24 hours a day, seven days a week, through multiple convenient channels," she added.

The ABA’s annual survey was conducted by Ipsos Public Affairs, an independent market research firm, August 12-14, 2011. Ipsos collected data from 2,011 U.S. adults aged 18 and older.

Weighting was employed to balance demographics and ensure that the sample's composition reflects that of the universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/- 2.2%age points 19 times out of 20 of what the results would have been if the entire population of adults aged 18 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

This was the first time the survey was conducted online; previous surveys were conducted by telephone. ABA has conducted the survey annually since 1998.

SOURCE: American Bankers Association

What is a QR Code, anyway?

2011-09-02T19:46:05Z

August 31, 2011: So, you just got your Facebook page up and running and have subscribed to a few industry blogs for new marketing ideas for your bank. You are feeling pretty good – like you’re maybe even ahead of the game. But just as you start to relax, you see something new.

What’s that black-and-white puzzle-looking square on the back of your hamburger wrapper? And there’s another one on that movie poster . . . what is that thing?

It’s called a QR Code and, if you haven’t seen one yet, you will. They’re right around the corner. Technology moves at a breakneck pace and by the time you get comfortable with today’s hot new trend, you’ll be months behind the next one.

QR Codes are beginning to pop up all over marketing materials for big name brands like Google and Starbucks. These quick response (QR) codes attract the attention of the very “hippest” among us and can drive them straight to your bank.

What is a QR Code, anyway?

A QR Code is an image that a consumer uses to access a specified URL. Once a user has downloaded the necessary app to his smart phone, he can then use his phone to scan the code and be automatically linked to a specific URL to learn more information, benefit from a special discount or redeem a limited offer.

Creating the code is easy because you don’t have to do a thing. QR Code generators create the actual code. All you have to do is tell them what URL you want the code to point to. Go to the generator’s website, input your desired URL, and click on “generate code.” They provide you with the image to include in your print or online marketing materials.

Prospects who have downloaded the QR Code reader can scan the code or take a photo of the image with their smart phone and be directly linked to your website or a landing page that offers a special coupon, discount or promotion.

The Benefits

The primary benefit of this technology is its immediacy. The response is automatic. If a prospect sees your ad and wants to learn more, they don’t have to manually input a URL or write down a specific website address. They simply scan the code and they are linked immediately.

QR Codes are free to generate and don’t cost any more to print than the other images in your ad. They are both interactive and trackable and, because the codes can be any size, you can embed them in anything from printed ads to digital signs and even billboards.

The Challenge

The only real drawback is that QR Codes are still new to the marketplace. Those outside of early technology adopters might not know what it is or what to do with it.

But this also provides a huge opportunity for your bank to take advantage of this technology and jump ahead of the curve!

Give it a try and, best case, you establish yourself as a technically-savvy organization that can resonate with a broad audience.

Start Small

Imbed a QR Code in your marketing materials and see how your audience responds. Maybe offer a special deal for those who take advantage of the code by linking to a coupon that offers to deposit $25 into any new checking account opened by a certain date.

Think about where the customer will see the code. Is it in a newspaper ad or could it be on their statement stuffer, where you are explaining the benefits of e-statements or remote capture? Think about who will be reading the code and how they will likely interact with your message.

The bottom line is this: not everyone will utilize – or even notice – a QR Code in your marketing materials and advertisements. Consider your audience and make sure you include more than one way for customers to access your information. Maybe the first few times, you should include an explanation of what it is and instructions on how to use it!

Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at nreynolds@bankmarketingcenter.com.

World Card Network Shakeup: VISA Now #2

2011-08-13T17:40:59Z

August 12, 2011: London-based Retail Banking Research (RBR) has announced the results of its latest global payment cards research study. The report finds that China UnionPay has surpassed Visa to become the world's largest card scheme.

There were eight billion payments cards circulating in 2010, says RBR, of which 29.2% carried the UnionPay brand, compared to 28.6% for Visa. However, Visa is still well ahead in terms of usage and spending.

MasterCard accounts for 20% of all cards issued world-wide, American Express just 1.1%, JCB 0.8% and Discover 0.7%. Private label cards make up 10% of the total with the same proportion coming from domestic banks.

About 99% of UnionPay cards circulate in China. Nevertheless, RBR noted rapid growth in the Chinese cards market, says Chris Herbert, the RBR associate who led the study.

Established in 2002, China UnionPay has grown at an extraordinary rate, strongly helped by rules that mean foreign companies are not allowed to issue their own cards denominated in its currency, build networks, or process interbank point-of-sale transactions, instead having to co-brand.

Because of China UnionPay's monopoly in its home market, the United States has formally appealed to the World Trade Organization to order open access to the cars market in China. Herbert commented, "If this happens, the other schemes will most likely enter into an intense competition for a share of the Chinese card market," he says. "Meanwhile, they will also be forced to face UnionPay outside of China as it steps up its international expansion."

Most recently, China UnionPay' announced an agreement with Secaucus, N.J.-based NYCE Payments Network to allow cardholders of both companies reciprocal access to ATMs in both networks.

Globally, the pre-paid and debit card sectors each grew by more than 10% in 2010, whilst the credit card sector contracted by 6%. Debit now account for 62% of all cards, credit for 28%, charge 6% and pre-paid 3%. The trend away from credit to debit will continue over the next few years, while pre-paid cards will see significant growth, accounting for 5% of all plastic by 2015.

Source: P-R Hot; Bank Systems & Technology; Fine Extra

Free Checking and Checking Fees in Decline, Survey Finds

2011-08-09T11:37:12Z

Foster City, CA/August 08, 2011/PRWEB: MoneyRates.com's semiannual Bank Fee Survey found that the percentage of free checking accounts in the survey declined slightly since January 2011.

“Don't give up on free checking,” says Richard Barrington, personal finance expert for MoneyRates.com. “Everyone wants to talk about how it is in decline, but over a third of checking accounts are still offered without monthly fees.”

The Bank Fee Survey found an average of $11.75 for a monthly checking account service fee charged by the surveyed banks.

Other key findings from the MoneyRates.com's July 2011 report include:

The percentage of free checking accounts in the survey declined from 37.7% in January to 34.7% in July 2011.

The average overdraft fee, $28.85, was nearly unchanged from the previous survey.

The average total fee for using another bank's ATMs rose from $3.06 in January to $3.22 in July, driven by an increase in the portion of the fee charged by the ATM-operating bank.

The average minimum balance to open an account fell from the January 2011 average of $517.41 to $412.53.

The average minimum balance to avoid monthly service fees also fell between January and July, from $4,807.11 to $4,122.66.

Methodology

The Bank Fee Survey is updated twice a year using data on checking accounts offered by banks in the MoneyRates Index. The MoneyRates Index is a composite of over 100 banks, including the 50 largest U.S. banks by deposit amount and a similar number of mid-sized banks. This sampling was constructed to be broadly representative of the general banking environment.

About MoneyRates.com

MoneyRates.com has been a leading source of information on bank rates, personal finance, savings accounts and investing since 1999. The site provides the highest rates on certificates of deposit, money market accounts and high-yield savings accounts. MoneyRates.com is owned and operated by QuinStreet, Inc, one of the largest Internet marketing and media companies in the world. \For more information, please visit QuinStreet.com.

Source: MoneyRates.com

FIRST STOP FOR BANKS: START WITH MARKETING

2011-08-04T03:08:51Z

WASHINGTON/August 3, 2011: The formula for regaining banking success begins with marketing, according to the American Bankers Association in announcing their annual Marketing Conference for 2011.

The ABA Marketing Conference, scheduled for the Marriott Baltimore Waterfront in Baltimore, Maryland, September 18-20, will focus on placing bank marketers up front in all strategic business initiatives.

Keynote speakers include internationally-recognized business trend expert Peter Sheahan who will reveal the five competencies that enable you to understand and utilize the forces that drive buyers’ behavior. Also, Becki Drahota, president and founder of Mills Financial Marketing, will explain how community banks can reclaim the value proposition they provide to America’s families and businesses and how marketers can enhance their banks’ image and boost respect.

The nation’s top business and banking experts will present sessions focusing on such topics as:

Extreme Bank Makeover: Deposit Product Edition;
The Business Case for Mobile;
Delivering a Seamless E-branch Experience;
The Role of the Branch in an Age of Automated Banking; and
From Good Ad Campaigns to Great Ad Campaigns.

In addition, new ABA CEO Frank Keating will discuss the issues that confront the banking industry and share insights into how strong marketing leadership drives successful organizations.

Prospective attendees with tight marketing budgets that restrict conference travel can use ABA’s online “Justification Toolkit” by visiting http://www.aba.com/Events/MKTG_JustificationKit.htm. Conference participants can earn up to 22 Certified Financial Marketing Professional credits and 10.00 Continuing Professional Education credits.

Conference registration is $1,190 for ABA and ABA Marketing Network members, $1,685 for non-members. For more information or to register, call 1-800-BANKERS or visit http://www.aba.com/Events/MKTG.htm.

Bananas, Baking Soda and Bank Marketing

2011-07-21T14:15:27Z

July 21, 2011: What do bananas and baking soda have to do with bank marketing? I thought you would never ask. Let’s start with the bananas…

If I were to hold up a bunch of bananas and asked an audience what they were, most would probably agree they were bananas. But if I held up a green banana and asked the same audience how many would buy this particular banana, less than half would raise their hands. And if I held up a banana that had already turned dark, even fewer would probably want to buy this banana.

As you can see, we are not really selling bananas! We are selling banana skins. People buy bananas based on what the banana skin looks like.

In light of this fact, a smart produce manager would market bananas in different ways, understanding that some people prefer ripe bananas, while others prefer green or darker bananas. Perhaps he could market the dark bananas alongside recipes for banana pudding and even place them next to the vanilla wafers. Maybe he could even add a headline like, “Ready for Grandma’s Banana Pudding?”

He might market the green bananas to folks heading out on a vacation, with a headline like, “Traveling Bananas – they’ll be ripe when you get there!”

A good marketer can take a product that many people think of as one thing and sell it in different ways.

Now let’s talk about baking soda. This is a product that has been around for over a hundred years and there are thousands of ways to use it. A good marketer might list some of these many uses on the side of the package.

You can brush your teeth with it, freshen your mouth, put it in cat litter to eliminate odors, clean pots and pans with it, eliminate odors in the refrigerator, use it as an antacid, polish silver with it, or even clean batteries. That’s how baking soda was marketed for years.

Then, one day a very smart marketer decided that he would put this same baking soda in a box with “Fridge-N-Freezer” on the front alongside a tagline that read, “30 days of freshness in every box.” He also decided to charge $.10 more per box. And guess what? People started paying $.10 more a box just to have a picture of a refrigerator on the front of the packaging!

Then this very smart marketer decided that if people would pay more to have a picture of a refrigerator on the front of the box, they might pay even more to have a picture of a cat on the front. After all, people spend millions of dollars each year on their pets. They put a picture of a cat on the front of the box advertising it as “Cat Litter Deodorizer” with “Activated Baking Soda” and starting charging over one dollar more per box! (I love the tagline “Activated Baking Soda.” I wonder who would buy non-activated baking soda? I guess people are willing to pay more for their baking soda to be activated!)

This proved to be so successful that before you knew it, baking soda was in every isle of the grocery store with many different product names and profit margins ten times that of the old-fashioned baking soda in the plain old box.

This brings us to banking. I’m sure you are wondering, what do green bananas and baking soda have to do with banking? Well, it has everything to do with banking!

For hundreds of years, banks have marketed and advertised themselves as plain old generic banks. A few got creative and started calling themselves community banks.

Throughout history, we have given our kids piggy banks for them to put their money into as a savings account and taught them how to take it out in a real emergency (when it was time to buy some candy.)

Most of us have grown up believing that you put your money in a bank and the bank keeps it for you until you need it. Historically, banks advertised CD’s and money market accounts to get us to put the money in the bank, and promoted car loans, mortgages and home equity loans to lend it out – all while making a small margin in the middle.

Banks even gave out credit cards like candy trying to get customers to charge, charge, and charge, always hoping that they would be late one month so that the bank could raise the interest rate to 19% or more.

But the last few years have changed all of this. Many people don’t have money to save and most have learned to quit running up large balances on their credit cards. And many banks are afraid to make loans in fear that those folks that ran up their credit card debt won’t be able to pay them back, especially since real estate values have plummeted.

Now is the time for a really smart marketer to apply the “green banana” concept to the banking industry. We need to realize that every individual and business has different banking needs.

For example, a large apartment community collects dozens of checks every day throughout the month. And each day, the apartment manager leaves at noon to take the checks to the bank and go to lunch. But before they go to the bank, they make copies of the checks and fax them back to headquarters to let them know which residents have paid their rent. Some apartment managers might decide to collect the checks and make a “weekly” run to the bank.

Both of these solutions are inefficient.

A smart bank marketing manager would target those apartment communities with personalized and customized marketing materials that explain how their bank can eliminate the pain of copying checks, faxing checks and going to the bank every day to deposit them.

These marketing messages would talk about the many benefits of remote deposit capture, for example, and even include the apartment community’s name or logo. A smart marketer could even create an additional piece targeting the apartment community’s corporate headquarters, making them aware of the potential liabilities of having their managers driving around town with thousands of dollars on hand at any given time.

This marketing piece would also discuss the many benefits of remote deposit capture and how, if management utilized this service, they would be able to see images of the actual checks instead of faxed copies. And even more importantly, deposits can be made in minutes without requiring anyone to leave the property.

And, of course, customers utilizing remote deposit capture are a prime candidate for online bill pay and e-statements. In fact, that same smart marketer could develop an “Apartment Banking” product line that promotes all of the bank’s services that an apartment community could use. They could even buy the web domain name ApartmentBanking.com for $9.99 and use it to promote their apartment banking product. (This name is still available, but you’d better hurry!)

The bottom line is this: there is no reason you can’t have an Apartment Banking product – just like you can have “Cat Litter Baking Soda.”

And this doesn’t just apply to apartment communities. You can target different industries with this same concept. Find out what each industry needs that is unique and position your products around them.

Find the pain and position your bank as the solution. Sure your bank can work with any industry, but you’ll get more business – and possibly better margins – by positioning and marketing yourself in different “aisles.”

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Affluent Opening Deposit Accounts at Banks, Credit Unions lose

2011-07-13T14:24:49Z

NEW YORK, July 12, 2011 /PRNewswire/ -- The market segment that controls over 90% of all personal financial wealth in the U.S, are taking money out of credit unions to open accounts at banks, according to a new study by TNS.

In a comprehensive, large-scale study of 4,600 affluent consumers, Banking the Affluent Consumer, TNS targeted households with $100,000 or more in investable assets.

Among the findings, TNS found five banks that had achieved material organic growth in their affluent customer base over the past two years. All of these had superior performance in terms of acquiring and retaining affluent customers.

Bank of America
Chase Bank
Capital One Bank
TD Bank
Key Bank

The study confirmed that Credit unions lost market share among the affluent in the 2009-2010 period.

Not surprisingly, the study found that CDs, Savings, and Money Market Deposit Accounts were the products most commonly opened by affluent households over the past year. The Affluent were less likely to have taken out new installment loans during the study period. These households, however, were twice as likely as consumers-at-large to have acquired new IRA, KEOGHs accounts or Mutual Funds in the past year.

"The dynamics of customer retention and share of wallet growth are materially different," said Joe Hagan, Senior Vice President of multi-client programs at TNS. "Despite being relatively unimportant to customer retention, effective management of customer relationships, e.g., showing customers that you know them and their history with you, and rewarding their loyalty, is critically important to growing share of wallet. Yet affluent customers tend to give their banks low marks in these areas."

About TNS

TNS is the world's largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions. TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 70 countries, TNS is part of Kantar, the world's largest research, insight and consultancy network.

Source: www.tns-us.com

Debit Card Fees Pose Marketing Dilemma, says Auriemma Consulting Group

2011-05-16T13:49:00Z

May 16, 2011/NEW YORK/Business Wire/ A recent study by the Auriemma Consulting Group (ACG), published in the syndicated monthly The Debit Report, compared debit card preferences among consumers. The study was undertaken to develop guidelines to replace income that may be lost under the Durbin amendment.

“ACG research has consistently shown that consumers react more strongly to the payment amount than to the total cost of service,” said Dr. Patricia A. Sahm, Managing Director at ACG. “A majority of study respondents would prefer a $5 monthly fee for a checking/debit card account over an annual fee of $12 and a per-transaction fee of 7 cents. Given their average of 18 debit card transactions per month, it would be less than $30 annually, compared to $60 for the monthly payment option.”

But simply adding a fee may be difficult for most debit card users to accept. The ACG study finds that only 12% of debit card holders currently pay an annual fee, while another 20% have minimum balance requirements. The vast majority of debit card users, approximately two-thirds, are those with free checking/debit cards.

“As we move from an environment where no-fee debit/checking is the norm, the desire to avoid fees may help banks with deposit and asset-gathering, giving them more opportunity in investment and wealth management,” predicts Dr. Sahm. She addes, “”Minimum-balance requirements are more palatable than maintenance fees, especially for the more affluent customers.”

Key findings from the ACG study include:

By a large margin, debit card holders would rather give up their rewards program than pay annual or transaction fees.

About a third of the consumers surveyed got rewards for their debit card usage, and these incentives are effective in diverting more spending to the card.

Debit card holders with rewards put $626 of their monthly spending on that card, compared to $346 for non-rewards cards.

If bankers stop receiving revenue from debit card transaction, they may be incented instead to discourage usage.

There are other ways in which Durbin-induced fees could have unintended consequences, noted Sahm. “Minimum-balance requirements are more palatable than maintenance fees, especially for more affluent customers. As we move from an environment where no-fee debit/checking is the norm, the desire to avoid fees may help banks with deposit and asset-gathering, giving them more opportunity in investment and wealth management.”

Source: BusinessWire/The Debit Report

Pew Study Finds Checking Hazardous to Consumer Health

2011-04-27T16:35:00Z

April 27, 2011: According to a new analysis released today from the Pew Health Group’s Safe Checking in the Electronic Age Project, many checking accounts contain hidden risks that can potentially harm account holders.

In October 2010, Pew began a study of checking account terms and conditions to examine both the state of the marketplace and the effect of current regulations covering checking accounts. This research analyzed more than 250 types of checking accounts offered online by the ten largest banks in the United States, which hold nearly 60 percent of all deposit volume nationwide. From this analysis, Pew identified patterns that impose unnecessary and potentially dangerous risks on consumers.

Key findings include:

Nine in ten households have a checking account and, as such, the number of checking accounts issued make this service more important to American households than a mortgage or a credit card.

The median length of checking account disclosures is 111 pages. Banks do not provide important policies and fee information in a concise and easy-to-understand format that allows customers to compare account terms and conditions among banks.

Banks reserve the right to re-order transactions in a manner that will maximize overdraft fees.

Account holders are not provided full information about the respective costs of overdraft options when considering opting-in to overdraft coverage.

Bank overdraft penalty fees are disproportionate to the size of the median overdraft amount.

More than 80% of accounts examined contain either binding mandatory arbitration agreements or fee-sharing provisions that require the account holder to pay the bank’s “loss, costs, and expenses” in a legal dispute regardless of the outcome to the case.

The study includes the following graphic to illustrate the issue that face consumers regarding checking accounts today:

The full report, which includes policy recommendations, may be viewed at: “Hidden Risks: The Case for Safe and Transparent Checking Accounts.”

Source: Pew Health

Want Loans? BCU Drives Auto Loans

2011-04-06T17:46:00Z

Vernon Hills, Illinois/April 6, 2011: Baxter Credit Union, already know for pioneering telephone loan services, has a reputation for being an aggressive and successful auto loan lender. They continue in that tradition this Spring with a campaign to capture auto loans held at other financial institutions.

In their "Save Money" campaign, BCU is offering either up to 1% A.P.R. off an existing rate, or 90 days of deferred payment. To sweeten the deal, BCU will deposit $100 into an existing savings account. Loans already at the Credit Union do not qualify.

This promotion is smart for several reasons. First, lowering the A.P.R. and giving away $100 is an offer that should get the attention of most consumers. Second, the Credit Union can always lengthen the remaining term on the loan to assure account profitability. Third, the program serves as a reminder to all members that the Credit Union is in the business of lending. That message, at a time when demand for new cars in finally on the up swing, can't be over emphasized.

BCU is delivering this campaign message in emails notifying that online statements are ready, as well as in their newsletter and website.

New Satisfaction Survey Finds CUs Appeal Less to Young Adults

2011-03-14T15:21:00Z

EMERYVILLE, CA/March 14, 2011 – A nationwide survey of credit union members finds a direct correlation between the age of credit union members and customer satisfaction. According to MyCUsurvey.com, credit union members over age 65 give 30% higher satisfaction ratings than members under age 30.

The survey also found a strong correlation between overall member satisfaction and the frequency of visits to the local branch. Members who visit their branch at least once a week demonstrated 10 points higher satisfaction than members who visit a branch less frequently, and 14 points higher than members who never visit their local branch.

Another survey finding also revealed that newer members are not nearly as satisfied with their credit union compared to members who have been customers for some time. The survey showed a 15-point spread in satisfaction ratings between those who had been members for one year or less, and those who belonged to the credit union for 10 years or more.

Key Findings

Member ratings of overall satisfaction tends to be higher:

As the member ages

If the member visits the branch

As the term of membership increases.

MyCUsurvey.com produced this national survey to establish the company as a source for benchmark local, regional and national membership satisfaction data. The survey of 5,000 credit union members across the country was conducted in late fall 2010.

"In creating our benchmark for MyCUsurvey, we have uncovered some key findings that are critical indicators for the credit union industry,” said Dr. Jack Bieda, founder of MyCUsurvey.com. “The convenience of web and mobile banking and other trends are undermining credit union member satisfaction. It’s clear that credit unions need to find a way to attract younger members and get members to visit their branches for a more personalized banking experience in order to cement the member relationship.”

PinPoint Research launched MyCUsurvey.com to offer credit unions a cost-effective, turnkey approach to customer satisfaction surveys.

For more information about the survey, visit www.mycusurvey.com and www.pinpointresearch.com.

Moebs Study Shows Community Banks and Credit Unions Added Five Million Checking Accounts in 2010

2011-03-11T02:22:00Z

Lake Forest, IL/March 1, 2011/ According to the latest data from the economic research firm, Moebs $ervices, only about half of the large national banks are now offering free checking, a decline of 13.6% over the past year. By not offering free checking, the big banks are steadily losing significant market share to community banks and credit unions.

“There is a fundamental consumer-shift going on in the banking sector,” said Mike Moebs, economist and CEO of Moebs Services. “This shift is going to move about 13,000,000 checking accounts to community banks and credit unions by the end of 2011.”

According to Moebs, self-imposed conditions, regulation requirements, and judicial penalties have leveled the ability of big banks to provide free checking to the average consumer.

“It costs about $300 on a fully absorbed cost basis to operate a checking account, and with fees falling below these costs, the average checking account at a Wall Street bank is unprofitable. Because Main Street financial institutions can operate below the $300 cost level, they can turn a profit, and will continue to take market share away from the larger banks,” explained Moebs.

There are 130 million consumer checking accounts in the United States. In 2009, large national and regional banks with deposits over $50 billion enjoyed about 45% of this market. Since then, during 2010, about five million accounts shifted from the big banks to community banks and credit unions.

“By the end of this year, we expect community banks and credit unions will have 65% of the checking account market. To paraphrase Mark Twain, ‘the death of free checking has been greatly exaggerated,’” said Moebs. “From July 2010 to February 2011, community banks offering free checking increased by one percent and by nine percent at credit unions.”

Regular Checking, accounts that charge a monthly fee if a certain balance is not maintained, increased from 25% at all depositories in July 2010, to 28.6% in February 2011. The median fee for falling below the minimum balance required for all financial institutions was $6.00. This monthly fee increased for the national banks but decreased for community financial institutions.

Cities that the saw the highest increase in community banks and credit unions offering free checking were: Los Angeles, New York, Philadelphia and San Francisco. States with the highest increase were: Indiana, Florida, New Jersey, Virginia, and West Virginia. The biggest decreases in offerings of free checking occurred in Denver, Detroit, Milwaukee, and Sacramento, as well as the states of Maryland, Massachusetts, and Ohio.

Credit Union Introduces New Features to Payday Loan Alternative

2011-03-11T02:15:00Z

RALEIGH, N.C., February 28, 2011 /PRNewswire/ The nation’s second largest credit union, North Carolina’s State Employees (SECU) currently provides a payday lending alternative for nearly 100,000 members monthly. Known as the Salary Advance Loan (SALO), the credit product offers a maximum line of $500.

The product carries a standard interest rate of 12%. A new SALO feature allows members to lower the rate to a share secured rate of 5.5%. The interest rate will remain at the reduced rate as long as the savings balance is $500 or greater. SECU believes that among those that currently use the product, the lower share secure rate will save members over $400,000 in interest costs alone.

In addition to making the loan available, SECU requires that 7% of the loan go into savings--- a requirement intended to eventually reduce the member's need to participate in the SALO program. A typical $500 loan advance means that $35 of that amount will become a savings deposit.

SECU introduced the Salary Advance Loan program ten years ago as a low-cost alternative to payday lenders. Since the program's introduction, over 150,000 members have taken advantage of the affordable borrowing opportunity. .

Bobby Gardner, SECU Senior Vice President of Loan Systems, states, "When the Credit Union began its SALO Program in 2001, it was designed as an alternative to high-cost payday lenders. What a wonderful alternative it has been for nearly 150,000 members, as the current program saves SALO participants an unbelievable $63 million each year in interest charges compared to typical payday lenders. We are pleased to be able to improve the program even further and add to the savings for many SALO users. SECU is continually looking for ways to help members keep money in their pockets and improve their financial lives. It's what we were designed to do 74 years ago when the Credit Union was chartered --- and it's what we strive to do today!"

J.D. Power: Customers are Shopping Around

2011-03-11T01:56:00Z

WESTLAKE VILLAGE, CA March 1, 2011 /PRNewswire/ According to a survey released March 1 by J.D. Power and Associates, customers are increasingly shopping for and switching to new primary banks.

The 2011 U.S. Retail Bank New Account Study examined the bank shopping and selection process as well as customer satisfaction with the account initiation and on-boarding processes. Among those surveyed, 8.7% indicated they switched their primary banking institution during the past year to a new provider. In comparison, just 7.7% said the same in the previous annual study. On average, customers said they considered 1.9 banks while shopping—up from an average of 1.6 banks in the earlier report.

"The increased switching rate indicates more consumers are coming into the market, providing more opportunities for banks to acquire new customers," said Rockwell Clancy, vice president of the financial services practice at J.D. Power and Associates. "These customers appear to be more discriminating and diligent when selecting a new bank."

According to Clancy, the most common reason for switching banks is a change in life circumstances, although customers also switch because of fees and rates, unmet expectations and poor service.

For customers evaluating and ultimately selecting a new bank, the most important factors driving their decision are:

Advertising;
Branch convenience;
Products and services;
Promotional offers; and
Direct and indirect customer experience (including past personal interactions, recommendations and bank reputation.)

Pricing, however, including fees and interest rates, carried relatively little weight in influencing customer purchase decisions despite recent heavy media coverage of changes to fees for bank accounts and credit cards.

Banks that perform well in acquiring new customers—Chase, PNC Bank and SunTrust Bank, in particular—tend to be aggressive in their advertising and promotions.

"It's undeniable that the 'blunt instruments' of ad spend, branch density, and promotional offers such as gift cards have been effective during the past year in capturing market share," said Clancy. "The question is whether these provide sustainable competitive advantage, particularly when compared with customer acquisition gains resulting from positive past experiences with a brand and recommendations from friends and family, which are harder to duplicate."

One of the study's most unexpected findings suggests that cross-selling is not a well-implemented strategy at most institutions: Only slightly more than 2 out of every 5 customers (43%) who purchased an additional banking product made that purchase at their primary bank. For customers who turn to another institution for an additional product, promotional offers such as gift cards carry the most weight in influencing the purchase decision.

"Customers who choose to stay with their current primary bank for additional products are most driven by positive past experience and perceptions that their bank is more focused on customers than on profits," said Clancy. "Clearly, banks that are not providing a noticeably better experience are more likely to lose the business of indifferent customers who are more easily lured by the next attractive promotional offer to come along."

The 2011 U.S. Retail Bank New Account Study is based on multiple evaluations from 4,791 customers who shopped for a new banking account or new primary financial institution during the past 12 months. The study was fielded in November and December 2010, and includes Bank of America; Bank of the West; BBVA Compass; BB&T; Capital One; Chase; Citibank; Comerica Bank; Fifth Third Bank; Harris National Bank; HSBC; Huntington National Bank; KeyBank; M&I Bank; M&T Bank; PNC Bank; RBS Citizens; Regions Bank; Sovereign Bank; SunTrust Bank; TD Bank; U.S. Bank; Union Bank; and Wells Fargo.