If you’ve heard it once, you’ve heard it a million times: mobile banking is going to change the banking industry. Sure, it won’t be overnight. But from all of the research I’ve seen, it won’t take long. I recently spoke at a Jack Henry Banking Educational Conference, where I held up my iphone and asked everyone what it was. As you can image, they all answered, “a phone.” I … [Read more...]
The switch is on – switching banks is becoming a lot easier
For several years now, I’ve been preaching about how banks and credit unions need to get their customers to use online bill pay and direct deposit. The reason is simple: the more bills a person or business pays online, the less likely they are to switch to another financial institution. Once a person inputs all of their vendors and monthly bills, they won’t want to go … [Read more...]
Community Banks and Credit Unions Catch a Break with Bank Fees
It’s been all over the news for weeks and people everywhere are getting fired-up about it. Even President Obama recently aired his complaints to ABC News, saying it was unfair to customers. We’re talking about bank fees. So what’s up with these bank fees and why are banks charging them to customers? It’s simple economics, really. Banks profit by loaning consumers and … [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...]