The financial crisis and the strategies used to cope are thankfully behind us. While the economy still leaves something to be desired, the longer-term issues banks need to address to prosper are becoming very evident. In this issue, we highlight two of them:
The Deposit Business is Going National. Recent earnings announcements have highlighted the disproportional share of customers going to the national banks. This holds across lines of business. Financial institutions need to address this industry restructuring with an intentional and focused deposit strategy. For most, that implies increased attention to segment clarity and prioritization, and clear-cut decisions on what path to take going forward. For others, the objective should be to “go national.”
The Marketing Function Needs to be Reconceived. As the industry moves from a decentralized eld sales model to a more centralized, multi-channel, data-driven, marketing model, the Marketing function must assume a new role within the organization. No longer a support function that focuses narrowly on advertising/ branding, Marketing must be more directive in how delivery channels, product and technology come together in service of the customer. David Clifton, CMO Emeritus at Huntington, and Neil Hall, former Head of the Retail Bank at PNC expand on this, and discuss what they believe is the new role of the CMO in the digital age.
This all points to the importance of the strategic planning process and above all else, putting the customer at the center. Now is the time to stop reflecting on the past and be very proactive and intentional about securing your place in the digital future.
As Retail Banking moves from its traditional reliance on physical convenience to digital-first experiences, marketing must step forward into a new leadership role that both defines and communicates the reasons consumers choose a bank.
At the end of April, more than a dozen bank marketers gathered with Novantas team members in Miami to discuss the challenges and the opportunities that exist in a market facing significant digital disruption.
The Executive Angle features commentary from industry leaders as they discuss what’s working and what’s not in their efforts to improve their organizations’ performance and prepare for the future.
For close to a decade, deposit growth for many institutions has been a lower priority. However, that is changing with rate increases. The emerging issue is not the aggregate growth of deposits, but which institutions will acquire them.
As rates rise, a decade of growth in Commercial deposit balances could unwind. To retain and grow deposits in what will be a highly competitive environment requires new, more surgical approaches to pricing.
As with Retail, SME customers are now vulnerable to disruption and national consolidation. To grow this segment, banks will need to align their value proposition, operating model, and capabilities to their target segment.