Let’s think through profitability for a second. Profitability has different meanings to different people because profitability by itself doesn’t mean much. When I first wrote the Profit-Growth Banking book before the last recession, I talked about how I’m not impressed by banks that grow fast. I’m not impressed by banks that are profitable.
What is your opportunity cost per inbound call?
In other words, how much profit is lost per mishandled call that doesn’t turn into a lead, then a customer, then a full relationship?
I’m going to show you some math that’s going to make you a little bit crazy as an executive of a bank. (more…)
When times get a little challenging, people can wig out and the team dynamics get a little interesting. But it doesn’t have to be that way.
Culture can be managed and culture can remain great, but you’re going to have to pay more attention to your culture than ever before during challenging times.
Team selling is the new “it.” But most banks get it all wrong, sadly. They think team selling is “I send Joe out with Susie, and Pat goes out with Jane … and everything is good.”
That is not team selling. Harvard Business Review had an instructive research-based article making the case that team selling is clobbering the traditional Maverick model.
But, hey, to get better results, you’ve got to do the team-selling process correctly, right?
We all got away in 2020 with not having to be out there calling on people all the time because we’ve been waiting for things to go back to normal.
For customers to walk into our lobbies again…to go back to the way it was.
But it doesn’t seem to be going back very quickly and certainly is never going to go back to the way it has been.
In every recession, the same things happen. Deposits get difficult. Everyone’s fighting over those same dollars. They all need deposits. Regulators are coming in. They’re cranky, and they’re writing up banks. There are liquidity issues. Everybody gets desperate and tries to find deposits, just when they’re hardest to find. That doesn’t seem like a good strategy to me. (more…)
Low-cost deposits are “it.” Having large, sticky, low-cost deposits with a large amount of cross-sales solves a plethora of problems.
When you increase your core deposits as a percentage of total deposits and have that metric continue to move up consistently and stay up, well…in the banking world, we call that the meaning of life.
As rates go back up and as the world gets a little bit crazier, it’s important to make sure that your bank has all the deposits it needs, and that you’re not paying through the nose or having to match rates as they’re going up.
Which side of the great money migration of 2021 will you be on?
There was a day when customers used to walk in your lobby—those were good days.
They loved you. They loved your people; your people would know how to greet them by name. They would be in relationships, sometimes they even hugged. Life was good.
Now they’re not walking into your lobby, and they haven’t been for pretty close to a year. After a year of only being connected by having an email sending out a statement, you’re pretty disconnected from a lot of your customers.