The Financial Brand

Is your banking website taking cues from your mobile app, and vice versa? They should. According to the latest report, major banks are on a mission to make their digital platforms more alike than awkward twins at a family reunion. Susan Foulds, Keynova's managing director, says this trend towards uniformity is like giving customers a comfy pair of digital slippers — familiar and satisfying across all channels. But here's the plot twist: while mobile banking is stealing the spotlight, desktop banking isn't ready for its curtain call just yet. Turns out, some consumers still prefer the wide-screen experience, especially when it comes to wealth management or complex transactions. The big banks are pulling out all the stops to keep their digital dashboards shiny. From real-time transaction lists to free credit scores, they're packing more features into these dashboards. And let's not forget customer service: banks are playing a high-stakes game, as they work to balance AI chatbots with the comforting presence of human helpers. Because sometimes, even in our digital age, you just need to hear a human voice tell you that yes, you really did spend that much at Starbucks last month.

Data analytics: The secret sauce for banking success 🏦📊 In today's digital age, some bankers still rely solely on personal relationships. But what if we could combine high-touch service with high-tech insights? At Associated Bank, Chief Analytics Officer Chun Schiros is revolutionizing customer relationships through data: "Relationship managers have hundreds of customers. They can't know them all well. But data analytics can enable deeper and better relationships." Schiros emphasizes data and AI are tools, not the end goal. Her approach? Work backwards from desired outcomes to determine the right analytics strategy. Key focus areas: - Expanding lending and deposit capabilities - Enhancing digital experiences - Developing scalable products and services "Data is not something you can turn into gold overnight," Schiros notes. But with patience and a clear vision, it can become a bank's true differentiator. How is your financial institution leveraging data to enhance customer relationships? Share your thoughts below! https://lnkd.in/e5P9bPJs

Capital Performance Group (CPG)’s Ally Akins & The Financial Brand analyzed banks’ marketing budgets & financial performance. The real story here is how traditional banks are getting ABSOLUTELY CRUSHED by fintechs. Here’s the scoop: FINTECHS CUT COSTS & OUTSPEND TRADITIONAL BANKS Banks must compete with national fintechs that are playing a different game, with drastically different resources. The 9 fintech holding companies they analyzed have AVG assets of $134B: American Express Co. Capital One Financial Corp. Discover Financial Services Green Dot Corp. LendingClub Corp. SoFi Technologies Synchrony Financial Ally Financial Cass Information Systems First off, fintechs have a tremendous cost advantage: They don’t rely on large branch or physical distribution networks. Secondly, fintechs are outspending traditional banks by A TON. To put it plainly, if a $3B bank is spending $2.1M (7 bps of assets), a fintech bank holding company of that size would be spending $25.2M (84 bps of assets). That’s 12x more - & some comparisons between asset classes are worse)! Our take 👉 It’s not just higher spending that’s placing fintechs well ahead—it’s their talent for designing differentiated products & simple experiences. Banks should take note because most are drowning in a sea of sameness. AVG SPENDING AS % OF ASSETS Fintechs have deep pockets & spend 8-14X more than banks on marketing. They invested an AVG of .84% of assets while traditional banks invested .06% - .11%: Our take 👉 Neobanks opened the lion’s share of checking accounts in '23. Their fat budgets are a key reason why. Assuming marketing dollars are wisely deployed, you’d expect 8-14X more spending to result in market domination. HIGHER SPENDING ≠ BETTER RESULTS Traditional banks, in general, grew marketing more slowly in ‘23 vs ‘22. Growing revenue remained an industry-wide challenge as banks fought for funding sources & competed against rivals of all kinds for deposits. As a result, only the largest banks managed to grow revenue faster than their non-marketing spend peers, while banks <$50B saw worse negative revenue change YoY than their peers. Our take 👉Why do FIs cut marketing budgets in difficult economic climates? Doesn’t it take more to grow? And when competitors cut spending & you hold strong, you’ve got a chance to leapfrog. WHAT TO DO TO SURVIVE Marketers can’t control their institution’s ability to remain profitable & to grow profitability further. However, they can contribute to their institution’s growth goals through targeted customer growth initiatives & campaigns that aim for customer retention & relationship deepening. Our take 👉Smart banks are wisely focused on driving more ORGANIC growth. They’ve studied how fintechs stamp out friction & deliver personalized guidance & offers that convert. If you want to better compete, hit us up! Read more: https://lnkd.in/eDtQEaYn

The fire hose of technology is on full blast, and how all of these disruptive changes will reshape the banking industry is yet to be determined. It is forcing chief marketing officers at banks and credit unions across the country to rethink how their teams can be most effective. Consider the impact of neobanks, which Stride Bank, N.A.'s Lindsey Ogan calls "a massive challenge" for marketers at traditional financial institutions. Hear from Lindsey and Pam Piligian from Navy Federal Credit Union on how they are revamping their roles as chief marketing officers and what challenges they are encountering.

Why is your bank in business? It's not a trick question. Why does your bank exist today? When GenAI exploded on the scene, a good part of the industry took its eye off the answer to that question, says Indranil Bandyopadhyay. Bandyopadhyay, a banking tech veteran turned analyst, has seen his fair share of FOMO-driven tech adoptions. A board member's grandkid shows them ChatGPT, and suddenly it's "Why aren't we doing this yesterday?" But, GenAI isn't a magic wand, it's more like a really smart, occasionally hallucinating, Swiss Army knife.

Happening today at 2pm EST: Solving the Deposit Puzzle: Strategies for Growth in Rate Uncertainty Community financial institutions are facing the daunting task of growing deposits in a challenging rate environment. Join Kasasa’s insightful webinar to explore effective strategies for navigating these complexities. Discover how to adapt to shifting customer behaviors and market dynamics to achieve sustainable deposit growth and bolster your bank’s market position.

The role of the CMO used to focus primarily around marketing campaigns and the costs around those campaigns. Those days are as outdated as a flip phone in Silicon Valley. Just ask Francesco Lagutaine from M&T Bank. Lagutaine's journey from global ad agencies to navigating a bank through the 2008 financial crisis has led him to a groundbreaking revelation: today's CMO must evolve from a brand cheerleader to a bona fide customer champion. But here's the kicker: it's not just about drowning in data or chasing the latest shiny marketing toy. Lagutaine argues that the real magic happens when you strip away the complexity and truly listen to your customers. It's about having the empathy to understand their needs and the courage to simplify their experiences. Want to know why Asia is leaving the West in the dust when it comes to marketing innovation? Or how a simple online appointment booking system became a game-changer during a global pandemic? Lagutaine's insights might just flip your marketing playbook on its head. https://lnkd.in/d_CTVE7B

Potentially one of the biggest legs up that legacy financial institutions have on digitally native competitors is often overlooked: Automated Clearing House (ACH) data.   As third-party cookies face extinction and competitors scramble for new sources of actionable customer insights, ACH data offers banks a unique first-party data edge.   The ACH network, which processed 31.5 billion payments worth $80.1 trillion in 2023, provides banks with a comprehensive record of money movements that only they can access. This treasure trove of information can reveal customer behaviors, preferences, and potential needs that savvy marketers can leverage for targeted campaigns and personalized offerings.   A case study from Northern Credit Union demonstrates the power of ACH data mining. By targeting members who had recently paid off auto loans or held loans with other lenders, the credit union generated $2.2 million in additional auto loans and $1.3 million in non-auto lending through targeted campaigns.   There are three key ways banks can mine their ACH data for competitive advantage. Curious to learn more? Read the article here. https://lnkd.in/gTzbWfpe

APIs have been the backbone of digital transformation in financial services for roughly 15 years, with the largest institutions incorporating thousands of these interfaces into their operations. While APIs are essential for modern banking, they also present significant security risks if not properly managed and secured. Real-world examples of API breaches — such as the fraudulent referral scheme that cost millions before detection — highlight the potential for abuse and exploitation. A recent survey by Traceable AI found that 26% of responding banks have experienced a data breach caused by API exploitation in the last two years, with 42% attributing the breach to fraud, abuse, and misuse of the APIs. The issue of API security becomes even more critical as the federal government pushes for open banking. Regulators expect financial institutions to maintain comprehensive inventories of their APIs and implement effective risk management strategies. However, 64% of the study's respondents still lack a comprehensive view of their API "attack surface," leaving them vulnerable to potential breaches. Curious to learn more about these API security risks? Steve Cocheo has a full take. Don't miss it.