Disrupt (or die trying)

Georgia peaches...
Georgia peaches…

If you’ve been on this site before, you probably recognize a pattern to my writing. Each Friday, I share three things I heard, learned or saw during the week.  In past posts, I’ve penned a number of “disruptive” stories that ranged from Brett King’s perspectives on banks (“Does Banking Need a Re-boot”) to John Cantarella’s on Time Inc.’s digital strategies (“Dass de Thing”).  So it should come as no surprise that I furiously began writing today’s column on a flight home from Atlanta on Wednesday evening.  I’d just spent several hours in the offices of the William Mills Agency, one of the nation’s preeminent financial public relations and marketing firms, and left inspired.  What follows are just three of the many Fintech companies the agency represents that are doing some pretty cool things.  IMHO, banks of all sizes might pay attention to these tech companies if they want to disrupt the status quo rather than have their status quo disrupted.

(1) In Bank Director’s home town of Nashville, TN resides the corporate marketing team for CSI, a leading provider of end-to-end technology solutions.  The public company delivers core processing, managed services, mobile and Internet solutions, payments processing along with print and electronic distribution & regulatory compliance solutions to financial institutions.  I like their resource center, but really appreciate their blog that highlights myriad client success stories.  For instance, “How One Bank “does” Social Media Right” shines a light on First Kentucky’s one and only social media strategy.  To wit: not a word about CSI’s involvement with the bank in favor of why the bank decided not to sell things to its social fans and followers.  A “fun and light” client example that shows a more intimate side of the bank vis-a-vis one of their preferred service providers.

(2) For many financial institutions, the gap between the strategy set by the board and subsequent execution can be quite wide.  As Steve Hovde (an investment banker and regular speaker at some of our larger events) shared with us, “bankers are conservative by nature, and the credit crisis served as a stark reminder why they should be. Still, many banks—particularly smaller, community banks—are reluctant to take advantage of strategic opportunities that could significantly enhance shareholder value.” So when First Midwest Bank (a not-so-small $9 billion institution based in Illinois) needed to measure product and customer profitability to support pricing and product offering decisions with accurate contribution margin results, I learned they turned to Axiom EPM.  The company, a provider of financial planning and performance management software, affords “visibility into profitability across the organization.” If you’re keen to learn how First Midwest analyzes profitability at their bank, you might take a look at this on-demand video.

(3) To wrap things up, let me pose a question: how fast would you switch to a different bank if you were the victim of online banking fraud?  Before you answer below (hint, hint), can you guess the percentage of your peers that would immediately?  From a banker’s perspective, such cyber risk poses a real threat to a business model.  Having worked in the IT space for 5+ years, I was curious if its possible to offer online and mobile banking with no possibility of this happening to a customer… ever.  Entersekt, a South African company with designs on the U.S. market, believes it is.  According to a few of the good folks at William Mills, the folks there are the pioneers in transaction authentication.  That is, the company “harnesses the power of electronic certificate technology with the convenience of mobile phones” to provide financial institutions and their customers with full protection from online banking fraud.  Authenticating millions of transactions globally, none of Entersekt’s clients have experienced a successful phishing attack on their systems since implementing the company’s technology.  A pretty impressive accomplishment, and nice way for me to wrap up this week’s column.

Aloha Friday!

Three out of Four Say…

rotary-phone

Last week, I shared that Cullen/Frost acquired another institution in Texas.  A stalwart of community banks, many analysts and investors cite their strength as proof that M&A isn’t a necessity to grow one’s business.  Still, organic growth has yet to return to the degree to which was hoped for by many other bankers at this point.  So with apologies to Deloitte, the following three points from members of the accounting world’s “Big Four” focus on the strategies some might consider to build their franchise value without requiring an acquisition.

(1) KPMG’s John Depman writes about the “unprecedented change afoot in the banking industry.”  In his view, technology is rapidly evolving and it’s changing consumer expectations about how banks should be serving them.  He carries this message throughout his “Community Banks That Fail to Leverage Technology May Become Obsolete” piece that is up on BankDirector.com.  According to John, community banks have been slower to embrace technology as a means to interact with and serve customers.  In doing so, they risk becoming obsolete.  To this end, he shares a number of key issues that directors and boards need to consider and subsequently work with senior management to address.  These range from “customer loss vs. investment return” to evaluating bank branch strategies.  Ultimately, “the model that defined our industry for generations has now been turned on its head.  The road to transforming your community bank won’t be short.  But, it’s a road that must be taken.”

(2) Keeping to this transformation theme, PwC’s Financial Services Managing Director, Nate Fisher, highlights how banks can align their pricing structure by using data from customer preferences, purchasing patterns and price sensitivity.

 

(3) Finally, banks continue to report increases in mobile banking usage, at least, according to a July 30th piece that ran in American Banker’s “Bank Technology News.”  There, they recognize the latest “Mobile Banking Intensity Index” which shows how features like mobile check deposit continue to be adopted quickly.  This lines up with a number of tweets I’ve recently seen from Ernst & Young (“EY”).  Some relate to the banking industry coping with the challenges of the mobile money ecosystem.  Others refer to the strategies that are emerging, and potential pitfalls to be avoided “in a landscape where competitors include businesses (telecoms and tech firms, for instance) that until recently had nothing to do with financial services.”  According to EY, in 2001, there was only one mobile payment system in the market. Today, there are 150 in everyday use and 90 more in development. Wow…

Aloha Friday!

Evidently, bigger isn’t always better

photo (21)

I can’t improve upon the FT’s Lex Column tweet for this week’s post; since it’s behind a paywall, I can’t share any more than the shortened URL either.  Still, it does foreshadow one of three points I’m sharing as we wrap up another summer week.

(1) When it comes to bank M&A, investment bankers “expect slow and steady consolidation.” Analysts point out that in today’s environment of slowed economic growth and regulatory change, bankers and investors continue to eye M&A as a possible opportunity for increasing profits and building strategic franchises.   So I paid close attention to news that Texas-based Cullen/Frost will, for the first time in nearly seven years, acquire another bank. On Tuesday, the NYSE-listed institution announced it will pick up Odessa-based WNB Bancshares, which operates in the heart of the oil-and-gas producing, Friday Night Light’sinspiring Permian Basin in West Texas.  If you’re not familiar with shoppingCullen/Frost, it has $22+ billion in assets and consistently ranks among the top banks in the country (at least, if you pay attention to rankings like the “Nifty Fifty,” which annually identifies the best users of capital).  As I looked for background on the deal, I found this article that ran in the bank’s hometown of San Antonio an interesting summary.  According to the news outlet, Cullen/Frost’s Chairman and CEO, Dick Evans, is fond of saying he is an “aggressive looker and a conservative buyer” when it comes to making acquisitions. So you have to figure this cash and stock deal (valued at $220 million) makes too much strategic sense for both institutions to ignore, especially with the Lone Star state’s surging oil and gas business.

(2) From size to age, you may hear me refer to my company as a 23-year old start up.  But this description cannot hold a candle to “a 110-year-old NorCal startup:” Mechanics Bank.  While I haven’t visited with them, every time I go to San Francisco I hear good things about the team leading the bank (and yes, we have written about their work; for example, “Talking Tech to Directors“).  Within the bank is the author of “Discerning Technologist,” Bradley Leimer.  As the VP of Online and Mobile Strategy at Mechanics Bank, I certainly appreciate his perspectives on change.  In fact, as I work on a growth-focused program for CEOs, executives and a bank’s boards, his “What Inspires Financial Services Innovation?” piece became a must read.  Totally up my tech and design alley and a blog worth following.

(3) Finishing on a technology kick, Fiserv shares a white paper that explores mobile strategies (“Mobile Banking Adoption: Your Frontline Staff Holds the Key to Growth“). Ubiquitous as this conversation feels, they show that for most financial institutions, mobile banking adoption typically hits a glass ceiling of 15% to 20% of online banking customers.  This surprised me, as adoption rates of mobile devices continues to grow.  I am a big fan of what the tech giant does to support the community, but I’ve talked with CEOs like Umpqua’s Ray Davis in the past about their retail concept that includes a big mobile push.  No matter what tone at the top is struck, tactical challenges remain for almost everyone.  So I’m curious to hear how banks account for this plateau as they devise their plans.  Many bank leaders I meet with express an interest in getting more mobile and social.  Fewer, however, have a comfort that their teams are measuring, and subsequently managing, such plans for the future.  Fiserv’s piece, for banks and credit unions alike, provides some interesting context for such strategic conversations.

Aloha Friday!

Caveat emptor (with a banking spin)

Kelsey, Jake, Mika and Katy outside our D.C. offices
Kelsey, Jake, Mika and Katy outside our D.C. offices

I had the pleasure of welcoming two new members to Bank Director earlier this week… Jake Massey and Katy Prejeant joined our team and both have set up shop in our Nashville offices.  As you can see, we invited them east to spend some time in D.C. with our Associate Publisher (Kelsey Weaver), SVP (Mika Moser) and me.  With the five of us huddled around a table on Monday and Tuesday, my focus was admittedly more internally focused then normal.  What follows, however, are three things I subsequently heard, discussed and find myself thinking about as the week wraps up.

(1) Politico shared the opinions of Chris Dodd (Connecticut’s former senator) and Barney Frank (a former congressman from Massachusetts) in an op-ed entitled “Pulling the Plug on Failed Financial Institutions.” In it, the two contend that their infamous financial reform legislation ends forever the ability of the U.S. government to provide support to failing financial companies.  “The Dodd-Frank Act is clear: Not only is there no legal authority to use public money to keep a failing entity in business, the law forbids it,” they write.  While there are parts of their bill that are potentially helpful, “on the bigger picture – whether too-big-to-fail financial institutions still benefit from implicit government subsidies and a high probability of explicit bailouts,” the former Chief Economist of the IMF respectfully disagrees with duo.  Indeed, on the NY Times Economix blog, Simon Johnson writes he feels this way — and is not alone.  Case-in-point, he highlights a point Fed Chairman Bernanke made in response to recent questioning from Senator Elizabeth Warren.  Essentially, Bernanke “confirmed that credit markets still believed the government stands behind big banks.” A fascinating juxtaposition of perspectives courtesy of Politico and the NY Times on our biggest financial institutions.

(2) Last week, Davis and Henderson (D+H) announced it was buying Harland Financial Solutions.  American Banker subsequently ran an interesting article appropriately named “Your Tech Vendor’s Been Sold — What Do You Do Now?” (*subscription required).  While not so much a blueprint as an overview, take note that “regulators are pressing banks to complete thorough due diligence on third-party vendors. But things can get complicated by consolidation of technology firms.”  I wrote about this after our annual Bank Audit Committee conference; albeit, with an eye towards evaluating your external auditor.  The same principles apply here, and a separate article on AB identifies several key components of IT contracts that need extra attention.  Having worked for an IT company from ’05 to ’10, I do understand the challenges they have as services and tools providers in terms of pricing and structuring mutually beneficial contracts.  I do wonder how thoroughly bank executives consider strategic and risky technology plans.  Sure, the expense side can be calculated.  However, this second piece makes clear that “many smaller banks fail to think about exit strategies when negotiating technology contracts.”  Caveat emptor…

(3) Leaving the Latin, but not learning, aside, my final point goes to a new training program spearheaded by our very talented Editor, Jack Milligan.  Now, its been said that you rarely see a strong board with a weak bank — or a strong bank with a weak board.  So as part of our commitment to building stronger banks by building stronger boards, we introduced the Board Training Program yesterday afternoon.

This is a comprehensive and board-focused educational platform developed by a faculty of industry experts.  Take a look and listen to Jack as he explains how we will cover such important topics as the role of the board, risk management, key audit, compensation and governance issues, and advice on growing the bank. 

Aloha Friday!

Back in the Saddle

A summer vacation sunset
A summer vacation sunset

It’s been a few weeks since I last shared what I’ve heard, learned or discussed on this site. Yes, vacation treated me well. But I’m excited to get back into the swing of things and especially pleased to welcome two new people to the Bank Director team: Katy Prejeant and Jake Massey. Both can be followed on Twitter @BankDirectorAE and @WJ_Massey. As always, what follows are three things that relate to bank executives and boards that caught my eye and/or ear this week.

(1) Drive a few hours west of our Nashville offices and you can find Memphis-based Mercer Capital. The advisory firm assists banks, thrifts and credit unions with “corporate valuation requirements and transactional services.” Each month, their Bank Watch newsletter pulls together a series of articles from around the web. From stress testing to Basel III, ESOPs to a Midwestern public bank peer report, there are some interesting reads this month. But one that caught my eye wasn’t in their report – it can be found on their main site. It’s a white paper on Creating the Potential for Shared Upside. Authored by Jeff Davis (a speaker at last year’s Acquire or Be Acquired conference), the piece reviews various financial issues arising when community banks merge or sell to a larger, public institution. With many anticipating an upswing in M&A deals in the second half of 2013, it is an interesting perspective to consider.

(2) In past posts, I have noted how the banking industry is a mature one. That is, where competing on price with the BofA’s of the world may best be seen as a fool’s errand. Nonetheless, McKinsey’s classic article on “Setting Value, Not Price” should be a must read this week. While not specific to the financial space, they lay out a reality where ”people buy products and services not on price alone but on customer value: the relationship between costs and benefits.” Although this trade-off has long been recognized as critical for marketing, this month’s “Insights & Publications” shows that businesses frequently get their price–benefit position wrong. They wrote in 1997 that “value” may be one of the most overused and misused terms in marketing and pricing. If you’re game, drop me a line below and let me know if you agree this is still the case.

(3) Spend any time talking with a bank’s CEO, and keeping pace with technology (and by extension, technology risk management) is sure to come up in a discussion that involves improving their business, brand and reputation. According to a new “FS Viewpoints” published by PwC, financial institutions have, for too long, “viewed technology risk management as a defensive tactic or regulatory compliance activity.” Based on the consultancy’s observations, “existing approaches to technology risk management often provide limited value to the business.” They see a real opportunity to leverage technology risk management to provide strategic business value. This piece shows how leading institutions are shifting their focus on risk management, moving from a fragmented and reactive compliance approach to a more balanced, business-aligned, risk-based strategy.
Aloha Friday!

Before I pack my bags

DC food trucks got some business...
By staying local, a few DC food trucks picked up extra business this week…

For the first time in nearly two months, I did not leave the friendly confines of Washington, D.C. for work.  Next week, AA gets my business back with a trip to San Francisco — followed by one the following week to Chicago and the next, to New York and Nashville.  Yes, I anticipate sharing a number of stories in the weeks ahead, but these three had me excited to post today.  As always, my #FridayFollow-inspired post on things I heard, learned or discussed that relate to financial organizations.

(1) File this one under “things that make you go hmmm.”  Earlier this week, the American Banker published an interesting piece entitled “Fed Reveals Secret Lessons of Successful Small Banks.”  As I’ve written in multiple M&A-focused posts, many investment banks  predicted a wave of consolidation among community banks after the financial crisis hit while positing that financial institutions need at least $1 billion of assets to compete/remain relevant.  This piece, however, cites recent St. Louis Fed research that shows the asset range with the most “thrivers” — the term the StL Fed used to describe remarkable banks — was $100 million to $300 million.  As the American Banker notes, much of the research stemming from the crisis focused on the mistakes banks had made, so the St. Louis Fed decided to take the opposite approach.  If you have a subscription to AB, their recap is worth a read.

(2) Disruptive technologies were front & center a few weeks ago in New Orleans at our annual Growth Conference.  Yesterday afternoon, McKinsey put out “Disruptive technologies: Advances that will transform life, business, and the global economy.”  While not specific to our industry, the fact that the “mobile internet” placed first should reinforce the conversations taking place in bank boardrooms today.  According to the authors, 4.3 billion people are yet to be connected to the Internet, with many expected to first engage through mobile devices.  Considering the six-fold growth in sales of smartphones and tablets since launch of iPhone in 2007, well, you can see why I’m bullish on banks getting social and enhancing their mobile offerings ASAP.

(3) Finally, for those quants looking for a good, non-Krugman economics piece, look no further than the NY Times’s “Economix” blog.  The most recent post: How a Big-Bank Failure Could Unfold.  In the piece, the authors consider what could happen if there were a hypothetical problem at a major international financial conglomerate such as Deutsche Bank or Citigroup.  As they note, “defenders of big banks are adamant that we have fixed the problem of too big to fail.”  This entry considers the alternative.  So for those with a desire to stay up late during this Memorial Day three-day weekend?  This might be a read for you.

Aloha Friday!

Its Aloha Friday

Cherry blossoms in DC
An example of organic growth in Chevy Chase D.C.

Earlier this week, as part of Bank Director’s annual Bank Chairman/CEO Peer Exchange, I was lucky enough to spend time with key leaders from 40+ community banks averaging nearly $900M in asset size. As I reflect on various growth-focused conversations I had with CEOs of NASDAQ-listed banks, I think I’ve found a common thread. Each person runs an institution profitable enough to make acquisitions — all while maintaining adequate capital ratios.  The interesting part (for me at least) concerns the strategies these executives set to build their brand and tactics put in place to “organically” grow their franchise.  As our industry continues to rally back from the past few years of pessimism, it really is fun to hear success stories.  So what follows are three thoughts from this week that builds on my time at the Four Seasons in Chicago.

  • While M&A offers immediate growth to the acquirer, I’m hearing that “stocking the bank for talent” is a real long-term challenge. While a bank’s CEO and Chairman must work even more closely to drive bottom line performance while enhancing shareholder value, I left Chicago convinced this team must more aggressively identify — and groom — the next generation of bank leadership. Without the big banks providing management training like they once did (an unintended pipeline of talent for community banks), its time to get creative. For example, while most at our event appreciate the need to get mobile, few community banks have the senior strategist on hand to do so right now. While that opens the door to outside advisors to support an institution, it does present longer term dangers as customers expect access to their banks sans branch or ATM use.
  • Keeping on the tech-to-grow theme, I read an interesting “big data,” bank-specific piece by McKinsey on my way home to D.C.  Personally, I’ve been interested in the various tools and tactics banks employ to analyze their massive amounts of data to detect/prevent fraud, devise customer loyalty plans and proactively approach consumers. This overview, complete with video, touch on these points and show how some are using big data and analytics to sharpen risk assessment and drive revenue.

Aloha Friday to all, especially my niece and sister-in-law on their birthdays.

A #FF-Inspired Financial Roundup

Checking in from St. Louis, the “Gateway to the West”

A somewhat abbreviated Friday Follow-inspired post (coming to you from the great state of Missouri). On this Good Friday, I’m keeping things simple and sharing “just” three things I learned this week.

  • Of the news this week, Senator Tim Johnson’s announcement that he will not seek re-election in 2014 is especially noteworthy.  Why?  Well, the Democrat from South Dakota chairs the powerful Senate Banking Committee.  His departure, according to this report from the Wall Street Journal, sets the stage for a hotly contested race to succeed him.  This should interest many bank executives; “while he is regarded as sympathetic to the concerns of financial firms that operate in his home state, including community banks, Mr. Johnson has also fought GOP attempts to roll back or water down portions of the Dodd-Frank financial overhaul law.” I wonder if the next chair will push for legislation to breakup the big banks as the committee has discussed?  As you can read in the American Banker (subscription required), guessing has already begun.
  • While I’d like to move off the topic of legislation and regulation, our own Chairman forwarded a client alert from the law firm of Goodwin Procter that kept my attention on rules and procedures.  The title, Nasdaq Proposes Rule Requiring Internal Audit Function at All Listed Companies, says a lot.  As you dig in, you’ll see this would go into effect by year-end.  From a bankers point-of-view, financial institutions that are publicly traded already face the pressure of doing more with fewer resources.  Every business function, including internal audit, is expected to bring value to an institution.  So, much like the Senator’s announcement, this proposed rule is one to watch.
  • Finally, on the payments front, there’s been a lot of talk about the mobile consumer and his/her mobile wallet.  For example, how Google Wallet poses a threat to big banks that make $$ off of card products.  Yes, mobile devices have increasingly become tools that consumers use for banking, payments, budgeting and shopping. However, in this WSJ article (Consumer Using Phones to Bank, but Not Buy) we’re told “Americans are increasingly using their phones to avoid a trip to the bank, but they still have little interest in having mobile devices replace their wallets.”  The piece builds on the results of a Federal Reserve survey released on Wednesday.  The Fed finds the adoption of various tools isn’t as robust as one might be led to believe.  If you have the time, it might be worth downloading the Fed’s results.

Aloha Friday!

Snowquester’d

The White House on 12/18/09
My attempts at photography: the White House on 12/18/09…

Summary: Yes, it’s snowing in the DMV… no, this picture of the White House doesn’t capture today’s totals just yet.  Nonetheless, the run on gas, food and firewood started early yesterday.  So what better time to post something new to About That Ratio than with the snow coming down and the power and wi-fi still on?

I’ve already touched on “Rebooting the Bank;” with today’s piece, I’m taking a look at “rebooting the branch.”  Whereas Brett King inspired my previous entry, credit for today’s falls to PwC.

Recently, I’ve had the chance to talk with several of the firm’s partners about the rise of the digitally driven consumer and commensurate high-cost infrastructure of physical banking locations.  I believe we’re in agreement that if the branch model stays on its current course, it will become a financial burden to banks; ultimately, cutting deep into cross-channel profitability.  So today, I thought to share some information produced by PwC that looks at reinventing branch banking in a multi-channel, global environment.

Yes, the branch of the future has a critical place in banks’ overall channel strategy.  However, in its December “FS Viewpoint,” the professional services firm cites the cost of a branch transaction being approximately 20x higher than a mobile transaction… and more than 40x higher than an online one.  Consequently, banks are beginning to adopt a mix of the following five branch models in order to compete and improve their ROI:

  1. Assisted self-service branches that cater to retail and small-business customers on the go with high-function kiosks;
  2. In-store and corporate branches; for example, in grocery stores and corporate office buildings;
  3. Full-service branches that provide one-stop banking (sales and service) to retail and small-business customers who prefer privacy and face-to-face interactions;
  4. Community centers that have a smaller footprint than traditional branches; and
  5. Flagship stores that deliver sales and advisory expertise while showcasing emerging capabilities to sophisticated customers.

The logic behind a mixed approach?  It increases the bank’s geographic relevance to consumers and balances customer needs, revenue opportunities and cost to achieve growth.

Anecdotally, I’ve recently talked with two CEOs, Ray Davis from Umpqua and Stephen Steinour from Huntington, about their branching strategies in advance of keynote speeches they’ve made at our Acquire or Be Acquired and Lending conferences.  It strikes me that when banks like theirs assess a prospective branching opportunity, they deliberate on things like:

  • How do you develop specific financial criteria for measuring branch performance;
  • How do you decide whether the best path to building customers is adding branches, or operating with a more centralized marketing strategy; and
  • What are the advantages — and potential pitfalls — of growing a branch network.

So as the snow continues to fall outside, I’m digging deeper into PwC’s perspectives.  As a “bonus” to the white paper referenced about, let me also share a video from the firm “Look Before You Leap: Analyze Customer and Business Impact Carefully Before Implementing Product Change.”  While the title is a mouthful, the message, pretty succinct.

Friday Fun

Below are three stories related to the financial community that I read/watched/heard this week… An added bonus? After this sentence, About That Ratio is 100% free of any mention of today’s nonsensical sequester.

(1) So, the IPO market for banks is ringing? This week, McKinney, Texas-based Independent Bank Group (the parent of Independent Bank) went loud with its plans to raise up to $92 million in an initial public offering. The bank plans to use the proceeds from the IPO to, surprise, surprise, repay debt, shore up its capital ratios for growth & acquisitions and for working capital.  This filing comes only a few weeks after ConnectOne in NJ (CNOB) closed its previously announced offering of 1.6M shares of common stock @ $28/share.  Good to see…

(2)… and with Independent Bank’s news, now might be time to take a read through this brief overview of the JOBS Act put out by the attorneys at MoFo.  Why?  A centrepiece of the Act is its new IPO on-ramp approach…

(3) On the non-IPO tip, check out this cool/intuitive infographics for tech trends posted by NASDAQ to its Facebook page yesterday afternoon.  Who said social media + banks ain’t quite as simpatico as they might be…

Image

Aloha Friday to all!

Does Banking Need a Re-boot?

Now that I’ve baited you with the headline, let me tie it to the opinions of Brett King (who, in full disclosure, we just confirmed as a speaker at Bank Director’s upcoming Growth conference at the Ritz-Carlton in New Orleans).

Shawmut HD.001

A history lesson for those non-Bostonians reading today’s post.  Shawmut Bank was established in Boston in 1836 and its logo, the stylized bust of Chief Obbatinewat — seen above — became widely recognizable in the Greater Boston area over the next 150 years.  Heck, we had one in our house!  Sadly, the name and logo were retired in 1995 as a result of the merger of Shawmut and Fleet.  But for me — and many others I’ve met (hello Bank of the West’s CEO) — “the Chief” still inspires a smile and a story.

Robert Parrish -- #OO
Robert Parrish — #OO

In my last post, I wrote that its not easy for a bank to build a strong brand.  Still, as some are finding, the rewards can be immense.  So I bring up “the Chief” (not to be confused with the equally awesome Robert Parish who dominated the paint for the Boston Celtics) as an example of a formerly strong brand that still stirs emotions and memories.  It also provides a tie into what I’ve been reading of Brett’s in terms of building a “sticky” customer experience and developing a multi-channel distribution strategy.

Admittedly, his “BANK 2.0” book reminded me of many I read while in the IT space.  For example, those authored by Clay Shirky; at least, in terms of crowdsourcing, “disruptive” customer behaviors, technology shifts and new business models.   But as Brett focuses on our financial community, I’m eager to crack open his “BANK 3.0” to see what he thinks might redefine financial services and payments.  I’m particularly interested in his POV with respect to:

  • Where social media might shine a light on pricing, processes and heretofore obtuse policies;
  • How “customer advocacy” is killing traditional brand marketing; and
  • The growth of the ‘de-banked’ consumer who might not need a bank at all.

I’m always interested in hearing who’s “doing it right” in order to learn and share their stories.  So I ask: in addition to Brett’s ideas, any suggestions for other authors, entrepreneurs, innovators, etc. worth a follow/read?  Hit me up on Twitter or feel free to leave a comment below.  I’ll re-post later this week as part of my “Friday Follow” inspired column.

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FWIW, the Growth Conference focuses on how a bank’s board can become actively involved in building the bank – in securing customers, identifying lending opportunities, promoting the bank in the community, etc. Its a complement to our annual M&A conference, Acquire or Be Acquired, which I covered in detail on my DCSpring21 blog last month.