Branding The Financial Industry
So we’ve weeded out the crooks (not really). I must say this entire “bail out” mess really makes me upset. I truly wish these companies could have just failed and new (honest) companies could have emerged. But alas that did not happen. So what do they do now?
Here’s what?I would consider:
1. A letter from the President included in your monthly statement or via email. This letter would apologize for the?company and or industry and make promises with solutions.
2. Part of the letter should include a FREE 30 minute consultation at each and every branch and customers should call a special number to make an appointment. Or they could have 25 people?customer groups and offer this same advice in a 1 hour session. Free food and drink should be included!
3. Set up a hot-line to answers questions via the phone. This could be done by email as well.
4. Each bank should set up an internally department (internal affairs) to oversee transactions if they don’t already have one. Once set up they should be completely transparent with their customers. Policing themselves and reporting that will help to restore trust.
Obviously I can go on and on…
This is a HUGE opportunity for banks to be proactive and sincere. Instead of sitting on their butts tapping into the free money we just gave them DO something. Develop some branding strategies, and transparency to help ease concerns.
What do you think?
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October 10th, 2008 at 11:08 am
My main thought so far, directed at the government, is “Get the hell out of my bank!” Fortunately, my bank was not one of the ones that failed (so far), so that’s one bright spot. However, it did disappoint me that when I checked their website, there was nothing about the crisis there. They really tout their internet banking, and you’d think that within a week or two of the crisis, they could have had a small page up about their standing in the crisis, andassuring their customers.
I definately like the idea of the banks offering consultations–sounds like a good idea.
October 10th, 2008 at 3:59 pm
Great ideas and thoughts about how the bank execs and politicians can “save face”. Unfortunately, the greedy and corrupt bank executives, (and their politician friends), feel they don’t have to take responsibility for their actions. They really haven’t lost much and they don’t really care about our problems and the affect their actions have on us. What a sad state of affairs.
They learned from the 1930’s not to allow the markets to sort themselves out, but didn’t learn from the 1920’s that they should never let it get to this point to begin with.
October 11th, 2008 at 12:13 am
People don’t respond well to snide advice delivered on a bed of bitterness.
You make a lovely argument though: “I’m pissed. Grrr. Banks that should have failed should now give me money for branding. At least that way, I get a slice of the bailout pie.”
What does one get for their money? More obvious advice, like communicate with customers via your call center and direct mail?
October 11th, 2008 at 8:42 am
Jeffry,
I’m hardly ptiching bank busines. I think it’s fair to say that their greed and unethical behavior has put them in this spot. Now it’s time for new banks to step in and do it right.
My very short tactic list is just a step in a direction any bank could take. For instance my bank (Citizens) has done nothing, nothing, nothing to communicate during these trying times. Don’t you think there is an opportunity to have an engaging conversation with their customers?
I was watching CNN yesterday and an expert suggested we let all these banks/insurance firms fail, take the 700 billion and give it to new banks. Therefore the credit lending would still happen but instead with a clean slate.
Boy do I love that idea.
I wasn’t trying to solve the banking crisis and I sure as shit don’t want any “bail out pie”. My point (which you are missing) was that banks are doing nothing when there is a massive opportunity to be proactive and engage customers. Build some trust through changes they are making to earn our trust.
But if you think sitting on your ass is the best way to go then you and I will have to agree to disagree.
October 11th, 2008 at 1:14 pm
You’re pissed off about the bailout plan. Okay, we get it. You think they should have been allowed to fail. Fine. So what does that have to do with anything that a financial institution should be doing with their communications strategy? Can you close that logic loop for us?
I don’t know of any single bank (or credit union, for that matter) that is ? in your words ? “doing nothing” or “sitting on their ass.” Not one. Most, if not all, have AT LEAST sent letters about the current situation.
Tell us, please, what 8,000 banks and 8,000 credit unions should be apologizing for. Afterall, you did give that blanket advice. In your world, is every one of them guilty ? simply by association?? of this “greed” and “unethical behavior?” Is it with a broad brush you paint an entire industry? Or can you be a little more specific? Just the big megabanks? Local banks? Regional banks? Commercial banks? Community banks? Savings and loans? Thrifts? Investment banks? Can you list the financial institutions that are, in your opinion, falling short in their communications strategies? The ones that have already failed can’t adopt your advice because it’s too late for them.
Can you give specific examples of what they should or should not be doing? Or are you merely reacting with your gut, and what you assume they aren’t doing? Simply put: Do you have any data, or research that suggests (all banks?) aren’t already doing what you suggest? Or is all this just based on assumptions?
Tell us, please, why another 800 number or hotline is needed? What does that accomplish? Why can’t people call the existing call center answer using the existing service number? Does the creation of a new phone number really show you’re “proactive” (”reactive” would probably be more accurate). Does it really help facilitate “customer engagement” any more than the existing phone number?
If your main point is that banks have an opportunity to foster dialogue with people, do you have any suggestions people couldn’t figure out for themselves, something a little less obvious than phone, email and letters?
October 11th, 2008 at 4:11 pm
Jeffy, I think most Americans are upset, angry and disgusted. But you’re the banking expert so you tell me and my readers…
The purpose of this blog post is not to offer exacting advice but to imply that banks (every last one of them) have an opportunity to engage their customers in a meaningful way. And I haven’t seen anything remotely close to that. If you’re aware of some great things banks are doing please share it.
To your statement:
“I don?t know of any single bank (or credit union, for that matter) that is ? in your words ? ?doing nothing? or ?sitting on their ass.? Not one. Most, if not all, have AT LEAST sent letters about the current situation.”
My bank, Citizens bank has done nothing. Period. I’ve received no correspondence what so ever nor has anyone contacted me. So now you know of one and I’m sure there are many, many more.
The entire banking industry is in crisis. This is a rare opportunity to do extraordinary things to make clients feel a sense of trust and security.
Now if I were the President of a bank not involved in this crisis I would go the extra mile to educate, empathize and comfort my clients. I would reassure them and be completely honest and transparent.
A good example of how it could be done is to follow JetBlue’s lead. When they had planes on the ground and customers were made to sit for 8 hours the CEO came out immediately and publicly. Held a major news conference and created the JetBlue Customer Bill of Rights. You can read about that here: http://www.jetblue.com/about/ourcompany/promise/index.html.
Tell me Jeffry, what bank has done that? I haven’t seen any apologies and solutions from any President of a bank on the news? I know of no solutions put in place? If you do please tell my readers.
I appreciate your vast knowledge of the banking industry and I’m certainly not going toe to toe with you in your sand box. Instead of attacking me because I feel banks are not taking advantage of an opportunity why don’t you tell my readers what you’ve seen? You’re the banking guru.
October 12th, 2008 at 11:24 am
Here are a few creative examples of financial institutions creating dialogue and engagement around the “safe & sound” strategy:
TDECU had a “Safe & Sound” website that was so good, so honest, that it bankers had it pulled down.
http://www.cutimes.com/article.php?article=40577
@Wachovia is on Twitter. They issue updates about the merger (Wells Fargo vs. Citi), and answer people’s questions. The latest tweet is warning customers to be aware of possibly phishing attacks exploiting merger communications. I’d call this “proactive.”
http://www.twitter.com/wachovia
Here’s a wrap-up of what credit unions across the country are doing:
http://www.cuna.org/newsnow/08/system100608-5.html
Wells Fargo just uploaded reassuring historical and vision/values videos to YouTube:
http://www.youtube.com/user/wellsfargo
I could go on and on…
October 12th, 2008 at 1:22 pm
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October 13th, 2008 at 9:43 pm
Now is definitely an opportune time for smart financial institutions to differentiate themselves in a positive way by engaging with their customers (and maybe work on some positive share-shifting?) in the way you suggested.
Smaller banks may have an advantage here: No corporate red tape = faster response and a better understanding of the value of individual relationships.
Building personal trust is crucial right now. Apple cider, cookies and friendly perks aren’t going to be enough to win that trust back. REAL engagement is going to be key. If a bank can convince its customers that it truly has their best interest in mind, starting at the very top of the management structure. That means that bank executives, not just the tellers, financial advisors and branch managers are going to have to roll up their sleeves and get some face time with their depositors.
This is definitely an opportunity for some banks to come out ahead of their competition.
Great post.
October 16th, 2008 at 11:44 am
Update:
I just received my first correspondence from my bank:
To our Customer and Friend,
Your business is important to us and so is your trust.
Today, our economy is going through an unprecedented time. And many of you are obviously concerned about the safety and security of your money. But we want to reassure you that your deposits are safe with us.
Now, more than ever, it?s important to have a banking partner who can offer
you the security you need. We?ve always believed in conservative, careful business practices. After all, we know that it isn?t just our money that?s at stake, it?s yours. And our bank ratings are some of the strongest among financial institutions: Standard & Poor?s rated us an A+, Moody?s Investor
Service gave us an Aa3 rating and Fitch Deposit Rating scored us AA, a testament to the security we can offer you.
Your deposits are now insured to at least $250,000. But you don?t just have to take our word for it. As always, you can rest assured knowing your deposits are insured by the Federal Deposit Insurance Corporation. Your deposits
are now insured by the FDIC to at least $250,000 per depositor, through December 31, 2009.
But we offer you more than just security, we offer you help. Especially in these uncertain times, you can count on our industry expertise and knowledge to help guide you. Our bankers will offer you practical advice and guidance
on how to weather the current financial crisis. Citizens Bank continues to grow, and as our customer, you can rest assured that you?ll continue to enjoy the high levels of service you?ve always received from us.
Sincerely,
James G. Connolly
President
Day late and a dollar short considering how long this took but at least they did something! I wonder if they’ll at least mail out something? We’ll see….
October 16th, 2008 at 7:13 pm
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