Why now is the perfect time for banks to connect with consumers.
The wagons are circled, the deadbolt is thrown, and the budget is clamped down tight.
While this statement could be referring to any number of industries today, it most certainly rings true for the majority in the banking industry. We are all painfully aware of the on-going upheaval in the financial markets. Banking is in chaos. It’s the media’s topic du jour and is not likely to dissipate soon. The press will continue to hound banks, looking for the conspiracy, because people love to lay blame on someone or something. It’s human nature.
But is it fair to target the Big Four on the Wanted Poster of our current recession? No doubt that Bank of America, Citi, Wells Fargo and Chase all played roles in the current economic crisis, but there is more than enough blame to go around. Investment Banks, Mortgage Lenders, past political administrations (i.e. 1990’s), and even the Federal Banking regulators all helped shape the mess we’re in now. And lest we forget, the American consumer must shoulder some of the blame, too. Their credit-binging habits pushed many to live beyond their means, leading to personal bankruptcies, foreclosures and retirement disaster.
Where does that leave the remainder of the approximately 7,600 regional and smaller banks? Guilty by association? Unfortunate but true.
The media’s net has cast most banks under the same cloud of suspicion and ridicule. Strong, healthy banks are seeing their stock price pummeled by the daily negative barrage from Wall Street. It’s not to say that all of these smaller banks are void of bad decisions or poor credit management (17 banks have failed so far this year). But generally speaking, these are the banks that are lending, are rejecting TARP, and are trying to stay afloat.
So what can the regional and smaller banks do to shed some of the negativity and even move the needle forward a little? Get back to fundamentals.
One initiative banks of all sizes are trying to execute right now (or should be!) is to increase capital by growing core deposits. To do this, banks need to get back out there and communicate the benefits of their safe, secure savings vehicles. With the market full of scared and disheartened consumers, money is in play at every level. Now is the perfect time to reach out to these vulnerable consumers and give them a reason to give you a chance.
Here are four fundamental principles for you to adopt in your marketing plans during this recession. Use them in combination for the best results.
- Transparency: Communicate your message of stability to your employees, your shareholders, your customers and your competitors. Tell them the facts, be accessible. Set up town hall meetings. Speak at the local Rotary. But let them know what’s going on.
- Educate: Provide your clients with helpful information on how to save, how much, and when. Analyze your savings programs to understand if they are meeting the collective needs of your clients. If they aren’t, refine them. Empathize with your clients. Supporting them now in their time of need will payoff for you in the future.
- Brand: Leverage your brand now more than ever. It’s your foundation, representing who you are and how your clients think of you. Your messaging will change throughout this turbulent time…but your brand should remain consistent. Your clients are expecting this.
- Solid, Safe, Stable, Secure, Sound: No matter what your stability message is right now, just make sure you are communicating it consistently and effectively. It’s not enough just to use the words. You need to define how they benefit your clients. Every bank in the market place is using some combination of these. Differentiate your bank by linking them emotionally or personally to your clients.
There is opportunity right now to gain market share and boost core deposit growth. The bank that can navigate through the current turbulence with transparent communication, empathy and education will be rewarded.
