During a recent video conversation with several community bankers, one shared a concern I’ve heard numerous times. He fears that big banks’ aggressive promotion of digital banking is an existential danger to them.
“I feel like it’s all about technology now and the game is always going to be stacked against us,” he said.
I acknowledged his concern, and then reminded him that the actual data suggests that is not yet the case. Sure, most national marketing campaigns and media coverage tend to focus on digital banking.
You don’t see or hear nearly as many national commercials mentioning convenient branch locations these days. Yet, the Federal Reserve Board’s most recent survey shows that consumers still list “location of branches” as the No. 1 reason they choose a checking account provider — and by a wide margin.
Industries are always evolving, of course. But that’s the reality of today.
There’s no doubt that more than a few larger banks seem focused on marketing convenient digital banking products as a strength and differentiator.
That said, I suggested that the gap between best-in-class mobile offerings and those sufficient to satisfy most banking customers is narrower than you might think. If you doubt that, get a group of bankers discussing how their mobile products compare to competitors’ offerings.
You’ll typically hear distinctions without significant differences.
I then kidded that since my manager friend referenced “the game,” a sports analogy was mandatory.
I asked them to consider the National Football League. The NFL is the most watched and analyzed sport in America. There are only 32 teams, and the rules of play are well known and strictly enforced.
The playing fields are identical, and each team has the same salary cap.
Extensive video of every game played is readily available, making it possible to easily identify and copy best practices.
On the surface, this would appear to create an environment in which each team would take the field with copycat strategies. Simply see what works for the most successful teams and copy it.
Of course, that’s not what happens. Even with rules and parameters designed to create parity, each team takes the field with its own strengths and weaknesses.
The most effective coaches and supporting staff get their teams playing to those strengths and counteracting their competition's. Winning operations identify where they have advantages and disadvantages, adapt accordingly and execute.
I suggested that as an NFL coach has to be keenly aware of where his team holds competitive advantages and where it doesn’t, bank leaders should continually assess their operations and play to their actual strengths.
In what areas is it possible to be near best-in-class in your markets? Sure, these may be areas others are competitive in as well, but they’re places where your team — as constituted — can effectively compete and differentiate itself.
Beyond that, smaller organizations shouldn’t operate with the mindset that they are competing with national or regional banks on one giant playing field. It can feel that way to members of those teams when most of the broadcast and online marketing blanketing a market is from big banks.
However, their competitions play out on a daily basis, market by market. And these markets may be as small as a section of a county, one town or even a few city blocks.
Those competitions tend not to be won or lost online. They are usually won by the teams doing the most effective jobs of keeping their bankers visible, accessible, relatable and engaged.
I often ask groups to consider the fact that an existing or potential customer has instant access to just about every bank in the industry in the palms of their hands. All these banks have smartphone apps.
But how many of these banks have had a banker shake that customer’s hand this month? How many have had one of their bankers’ business cards handed to that person?
How many of those banks are actively involved with that customer’s local schools, youth sports leagues or civic and social organizations? How many of those banks had bankers drop in or telephone that customer to check in with their place of business recently?
And how many of those banks have provided a personal experience this month that made that customer feel truly appreciated?
The answer to most of those questions is usually “none.” Be the bank that changes that for as many people in your markets as possible and you’ll be the best team on the field in more customers’ eyes.
