There are many new trends that are hitting us in banking. Let’s face it, it’s not like it used to be. So, let’s talk about some of the many things that are happening. And let’s also talk about how to make sure that you’re successfully managing some of these banking trends.
Banking Trend Number One
Culture remains much more challenging than it’s been before. Yes, we’ve just seen the great “Turnover Tsunami,” and who knows when that will be complete. But the reality is that the banks that did a good job of working their cultural systems,
Way too many banks have spent a lot of money on brand awareness. And yet, can you even point to one customer who said I came to this bank because I just love their brand?
In fact, most money spent on branding has a negative return on investment. Sadly, we’ve all been sold a bill of goods that is not producing. However, there’s something to be said for branding. And that is in the conversation of brand insistence.
In other words, “You’re the only bank I’ll ever need or want,” is what they need to be saying as a result of the experience that you create.
Net interest margin. Three of my favorite words. Why? Because it is such an important component of what takes a bank to the top of its peers. And if you’re tired of being average and competing on rate, I’m going to tell you that there is a way out of that mess.
And, in fact, I would suggest that the banks that don’t figure out how to avoid matching rates soon are probably not going to maintain their independence going forward.
That’s because there is more competition than ever,
Listen, I don’t know about you, but I think everyone’s pretty much tired of 2021. But what’s going to happen in 2022?
Well, first of all, what did we learn from 2021?
2021 Lesson Number 1
As community bankers, we’ve learned we are tough and that we can withstand a lot of pressure from putting in PPP loans into the system at three o’clock in the morning and working around the clock through the weekends to make sure that it all happened.
2021 Lesson Number 2
We learned that culture can actually improve during difficult times,
Merry Christmas to you, your team, and your family. At a time like this, we should stop and reflect on what this holiday is all about.
It’s all about family, and we know it—because having the love and the ability to impact other people in the world and the ones that we brought into the world is a wonderful thing.
But listen: Our family extends beyond the family that we’ve given birth to and the one we’re birthed into. We also have a family called our team.
How do you increase your bank’s profits, and replace PPP revenue, when your desperate competitors are doing crazy things, and it has never looked harder to create profit within your bank? Well …
Here’s the reality
There are circumstances outside of your control that you can’t do anything about. But there are things within your control that you can do a lot about—by just being very systematic, organized, and strategic about doing the right things.
Let’s face it, when I started in banking, I took on the job of the guy before me.
There’s been a popular question around for decades: How to improve cross-selling in banks?
Yes, some people don’t like to use the word “cross-sells” after what happened with a certain large bank that got into some trouble. But the reality is that bookkeeping is bookkeeping, and revenue per day producing items are sales, and cross-sells is not a dirty word. It’s just a measure of trust. And it is one of the most enlightened elements that your people can bring to your customers and your community when done correctly.
Find out the surprising things the franchise system of banking can do for your bank revenue
What if you thought about your bank as a franchise?
Seriously, any business should think of itself as a franchise system. And everything in your bank should be thought of as a system. And of all the bank franchise systems, the most important of those is the revenue system.
Let’s face it. Revenue solves lots of problems.
But most banks really don’t have a revenue system.
Do you hold the entire relationship for every one of your bank account holders?
I hope you do. But maybe you don’t. And maybe your people don’t know how to get effective cross-selling done.
If you’re not averaging five, six, or even seven cross-sales on every new relationship that is opened up in your bank …
Something’s just not right yet
And it doesn’t mean you have bad people. It just means they don’t know what to do for effective cross-selling. But they’re going to need to figure it out.
This Thanksgiving holiday, I give thanks for you. And I hope that you’re in a state of gratitude.
Gratitude is the filter with which we take in life. At every moment in time, things could be a whole lot worse. And that’s what gratitude is–seeing the good things.
I constantly remind my team about when I was growing up milking cows, going to the barn in the morning when it was 20 degrees below zero with snow blowing sideways set a bar it has been easy to rise above.