I believe banks deserve to get paid far more for what they do. One of the biggest factors in this inequity is rate matching. But the good news is, it’s preventable.
In this episode, I’m going to share with you a process to get your people to stop rate matching for good. It will be ingrained to never again give a rate when someone calls in asking for one.
Now, if you’re the kind of leader:
- Who has been on the bandwagon for years about not having to match rate,
Cross-sales is a measure of trust
I believe people get energy and feel good about themselves when they help other people.
In this episode, I’m going to show you how to get your team excited about having your clients acquire all the products and services that would help them.
I believe cross-sales is a measure of trust.
If they trust you and see extreme value, they bring everything to you immediately and continue to add more as they need it.
It’s not sales.
During challenging times, the one thing you can count on is that desperate competitors and fly-by-night organizations are going to come in and try to take away your best customers.
Let’s face it, your top 100 customers, for any bank under $2-billion asset size, account for anywhere between 50 to 140% of your profits.
That’s a significant thing to understand. They are precious. They pay for all the bills, and you must, of course, keep all of them.
I don’t know about you, but I loved the movie The Founder, probably because I’ve been a systems thinker all of my life, and I truly believe there’s one way that’s the best way to do everything.
I believe that when you obsess over how to get the fastest way from A to B in everything that you do in your business, things begin to really shine quickly. (more…)
A dear friend asked me a question one time, “Oh really, can you afford not to?”
And I thought that was one of the most brilliant questions I’ve ever heard.
Let me pose it to you this way.
Can you afford not to figure out how to increase your net interest margin by 100 basis points while bringing down your cost of funds and bringing up the quality of the loans you’re making?
And hear your customers say, “I Don’t Want To Work With Any Bank But You.”
If you don’t care about premium pricing, you can stop listening right now.
This is for bank executives who want to figure out how to command premium pricing despite the too-common assumption that banking is a commodity. Therefore, they cannot command premium pricing—or, at best, maybe 25 basis points more on the loan side.
Here’s The Problem
Any bank that can only command 25 basis points of premium pricing will probably not have its name on the front door five years from now.
If your top 100 customers do account for 50 to 140 percent of your profits, like they do for most every bank with under $2 billion in assets, you have to ask yourself: Do you really know how to identify your next top 100 potential customers?
I am a nerd. I’ve always been a nerd.
When I was a little kid, I used to go to the library every other day and I would drag books all the way up to my chin back onto the bus and back off of the bus, then back to the library. I’d fill up with books about twice a week.
I’ve always had a passion for learning and discovering and finding out what other people know—rather than having to discover everything myself. I have some favorite books. One of them, I think, is really important during strategic planning season for your executive team to get their brain unlocked from where it has been,
Marketing isn’t what it used to be. For many banks, it’s changing how you should be investing your marketing dollars and the strategies that you should be using. (more…)
I was speaking recently for a bank marketing association and what occurred to me was that I made a big discovery. I asked them how they move net interest margin. And I got that “huh?” look.