Consumers can turn to a growing number of companies for financial products these days, but as Jamie Moldafsky sees it, banking comes back to relationships.
Moldafsky, the chief marketing officer at Wells Fargo (WFC), says the opportunity to forge tight ties with customers matters more than the latest product or the form of one's business, and gives banks an edge over competitors from start-ups to retailing giants when it comes to meeting consumers' needs.
"I actually do think that part of the opportunity for us is not getting caught up in the notion of bank, and acting like a bank or not like a bank, but in being a trusted adviser," Moldafsky told American Banker on Tuesday at the Financial Services Marketing and Innovation Symposium in New York.
Moldafsky was discussing a
"It's easier for people to envision borrowing from an institution that they don't really know or care about because it's someone giving them money, so that's probably where a Walmart or an Amazon (AMZN) becomes a little more tenable," Moldafsky said. "But I think when people ultimately want to give their money to somebody and invest their money, and get advice about very important life decisions like businesses and education and things like that, they actually often want to have a conversation with someone who's going to help them make a good choice."
According to Moldafsky, helping consumers succeed financially is at the core of Wells Fargo's mission and the right strategy for the bank to realize its vision to be known as one of America's great companies. "We believe that if we do that, and do that well, we will be one of the world's best brands," Moldafsky said.
If any company can influence perceptions of commercial banking, it may be Wells Fargo. The nation's fourth-biggest bank by assets has more than 70 million customers and serves one in three households in America. The 160-year-old company writes more home and small business loans than anyone, employs 265,000 people and processes roughly four billion transactions a year.
"We have an awful lot of data," Moldafsky told the symposium audience. The company also roughly 9,000 offices, including about 6,200 retail branches nationwide that Moldafsky says give Wells Fargo a chance to connect customers. "The opportunity for the physical location will not go away," she added.
Moldafsky says the focus on building relationships makes business sense. "From a consumer's standpoint…what comes to the top, is that you know me and therefore you're not wasting my time, you're offering me the right solution based on what you know about me, and you're hopefully leveraging the information I'm giving you to make it an easier experience," Moldafsky said. She cites Wells Fargo's anticipating that someone who applies for a mortgage may need homeowners insurance or that a household with children may look for help on saving for college as examples of how the bank can draw revenue from relationships.
When it comes to technology, Moldafsky says Wells Fargo aims to anticipate customers' needs while retaining the flexibility to adapt to an evolving scene. "Being in enough places so you make the right bets but not having to place them all at once, too big, is, I think, a good approach and one that's consistent with our values as a company, which is we tend not to be necessarily the leader but we want to be out and make sure we're at the front," Moldafsky said.
In 2011, Wells Fargo, Bank of America and JPMorgan Chase
Looking ahead to 2013, Moldafsky says Wells Fargo will focus on deepening relationships with varied groups of customers, including Hispanics, millennials and affluent customers. "Every customer segment is important but…there are just some key trends in the market, and just making sure that we are relevant and that the services we provide are the ones that are most important" will be a priority, Moldafsky said.
Another priority remains mobile. Wells Fargo has roughly 21 million customers who bank online, including about 8.3 million who access their accounts via smartphones and other mobile devices. Moldafsky says "really underscoring mobile…make sure people know what we have and how we can make their lives easier," will be an area of focus for the bank.
Moldafsky says she feels excited about the opportunity that Wells Fargo has to make a difference for people who need financial help. "I really do believe that we are in a really challenging environment and that people don't know where to turn to, and it may or may not be directly to us, but we have a responsibility and an opportunity to more broadly enable financial success for the American economy," Moldafsky said.
