Brain Food For Banks By Fred Barson

Okay, the money's dried up.�There's panic in the market. The government's acting like a fussy midwife.�Consumers are skeptical about anyone who pretends to have anything to do with a bank.�Where's the foothold for a mid size bank to seize initiative?1. They must be clear about their value proposition.�There will be fewer large banks in the future, that is, fewer banks that can and do sell everything: investments, commercial loans and services, and transactional accounts like credit cards, personal checking, and savings accounts.�That means most banks will be competing in a very large, undifferentiated mid market.�Winners will be clear about two things: what they're really good at and who's buying it.��2. They must be clear who they're up against and position, position, position.�For years all but the largest banks have sniffed at the notion of competition.�Banking was one big happy family seated around the weekly table at Rotary.�No need to drop Rotary, but when they're at the table, a bank needs to think strategically.�Make sure they know what the other banks and credit unions at the table are capable of doing: what are their available reserves? What are their core competencies? How efficient are their deliveries?�That's a start toward understanding how customers see them compared to others.�With that information, a bank can position itself against its competition and give consumers a clear choice.3.�They must truly embrace their business.Banking is a service, whether it's for individuals or businesses.�Generally, service consumers look for help, which means they're emotionally vulnerable.�They'd prefer the help comes from a knowledgeable, sympathetic, non judgmental source.�So, in the present turmoil, banks are going to have to get really good at empathy. And they're going to have to get a whole lot better at building financial products that benefit consumers.�In other words, banks will no longer satisfy consumers who seek security, advice, or a step up by flashing a smile and giving away free coffee mugs.�They will satisfy consumers by helping them achieve their dreams.4.�They must innovate.The word for years has been: banks sell commodities - not pork bellies but cookie cutter products and services.�Well, the time has come to stop thinking about how easily they can make a loan and start thinking about how well they can make the loan.�More than any other skill - because it has been so lacking - innovation will differentiate the successful small and mid market financial services business from all competition.�It may require some late nights.�It may require outsourcing absent skills.�But more than that, it will require listening to customers, really hearing what they say and finding creative ways to cover risk rather than passing it on to the consumer.�It's a whole new ballgame, and the first inning is almost over.Fred Barson is an expert in financial services marketing and branding. He offers solutions at many levels: individual consults, management workshops, brainstorming, site analyses, customer research, all the way up to full blown