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Community Banking Trends for 2022

by | Consulting

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, didn’t stop any of them, and did all of them correctly, actually ended up with better culture scores at the end of 2021, even after they went through a living hell. 

Let’s face it, culture is a series of systems, and so we have to manage that trend. We can’t just accept the fact that everything is Looney Tunes out there. Because it can’t be Looney Tunes in here. We need to figure out what kind of systems you need in place to make sure that all of your best people stay and that the people who are not working out leave—because both of those are necessary for you to run a high-performing bank. 

Banking Trend Number Two

Another banking industry trend is top community banking news: we’re seeing desperate competitors come out of the woodwork with desperate offers and targeting your best customers. This means that there will be pressure for pricing at renewal time that we have not seen in a long time. If you don’t approach it in advance and have a level four USP (unique selling proposition) that stands out so much that they tell you, “That’s worth a million to me, that’s worth two million to me,” I can promise you’ll be saying this: “We have to match the price in order to keep the deal.”

And what that basically means is that although we’re bringing in the business, it’s not going to be profitable. This is something we cannot make up in volume. But this is a trend that can be managed. Trends are things that are done to you. But there are things you can do to mitigate the risks between what’s happening and how your response gets thrown in there to create the event. You are responsible for the response. 

Banking Trend Number Three

Yet another banking trend that we’ll be seeing more of this year is a complete and total change of bank marketing strategy. Listen, I don’t know any banks that want to spend half a million or a million dollars on marketing anymore when marketing departments can’t prove a positive return on investment

Now, it’s not their fault. They’re doing what they’ve been taught to do. And yet they, along with you, need to understand which are the marketing items with a positive return on investment and how to prove return on investment before you even invest those dollars. 

It can be done. There are some banks doing it, but most banks are doing this all wrong. Again, please don’t fire your marketing department. It’s not their fault. Instead, let’s educate them about how to get things done right.

So you can see that between culture, pricing, and marketing trends, we’ve got a lot to handle in 2022. Just remember, you don’t have to handle them alone. 

– Roxanne Emmerich

Please watch the video above and share it with your exec team and board.

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