New banking regulations, reduced loan volume and intense competition are causing banks all over the country to search for ways to cut overhead. FDIC data shows that small banks as a group are less efficient than the larger ones. In the most recent quarter, 76 cents of every $1 in revenue at banks with less than $100 million in assets was used to cover expenses. At the larger … [Read more...]
Why Banks are like Flower Shops
Years ago, I invested in a flower shop. It wasn’t your typical corner flower shop filled with red carnations and yellow roses. In fact, we didn’t even have a shop. All we had was a van for deliveries. I researched the flower industry and found that flower shops have very high margins, but very small profits. The main reason for this is the overhead cost and the fact that … [Read more...]
How to market your Internet Bank
A reader of this blog recently asked my advice on the most economical and effective way to market an Internet bank. The truth is – basic marketing rules still apply. Like with marketing traditional banks, your primary concern should be who your audience is. Internet banks attract a very specific kind of banking customer – one that is computer savvy and comfortable doing … [Read more...]
Wells Fargo, SunTrust and Regions Bank Introduce New Fees
Brace yourself: here come the fees. Last week, we talked about how the country’s banking environment is evolving in light of recent regulatory changes and their negative revenue impact on banks. Recent federal regulations have capped overdraft fees, certain levies on credit cards, and even what banks are allowed to charge merchants when customers use their debit … [Read more...]
7 Disciplines You Should Expect from Your Banking Sales Team
No matter how creative or innovative your marketing ideas are for your bank, you have to have the right salespeople in place to effectively carry out your strategy. But when hiring or managing your salespeople, how do you know who has what it takes? Here are some tips from my friend, Louie Bernstein of www.sales-getters.com, who has over 22 years of experience successfully … [Read more...]