Welcome back to our series on sustainable growth, crafted to help financial institutions discover how to achieve lasting growth beyond the wins of 2020. In our previous series articles, we introduced our holistic approach and discussed how acquiring the right kind of customers affects everything else.
Customer acquisition is only one piece of a greater sustainable growth engine. While acquisition is necessary for growth, financial institutions must also focus on retaining these new customers.
3,700 community banks became Small Business Administration (SBA) lenders almost overnight to support the Paycheck Protection Program (PPP). Since April 3rd, these institutions effectively dispersed one hundred times as many loans as in 2019 altogether. By serving over 4.5 million afflicted small businesses during that period, these banks put over $512 billion into the economy…
Mobile banking applications, online banking, and digital onboarding have become very popular in the modern bank, and for good reason. Financial media has placed a huge emphasis on digital channels in the financial industry, warning the loss of relevancy for community financial institutions if they don’t get on board. While this may be true, it…
When it comes to keeping customers, selling shouldn’t be your top priority — engagement should. This means committing to getting to know your new customers in meaningful, value-added ways. Doing so means you’ll minimize the chances of their defection and increase the likelihood of developing a lifelong relationship with these customers. Gallup data show that…
We all have loyalties to particular service providers — but we also recognize that there are plenty of opportunities to buy the same services from competitors. “People today want a relationship with their bank that is built on trust. Getting to know their needs takes more than a phone call or handing out a product…
Today, banks are facing low interest rate spreads and increased regulations. At the same time, they’re also struggling to offer a value proposition that resonates with customers. A Gallup Retail Banking Industry Survey said that banks need to do a better job of helping their customers see the value in what they provide. But that’s…
At a conference session I attended recently, a bank president asked a highly relevant question. He wanted to know how his bank could build relationships with customers who have left the branches in favor of online and mobile banking. Only 16 percent of his bank’s customers, he said, still visit branches to make transactions. Granted,…
Mergers and acquisitions are on the minds of a lot of banks these days. On paper, they offer an opportunity to generate large returns and greater shareholder value. In reality, numerous studies have found that more than half of all mergers fail to deliver the intended improvement in shareholder value. Why? During an acquisition, many…