We often make decisions using our emotions, but financial decisions are more likely to be better and more useful if we make them by using our heads. Behavioral science and storytelling can help with crafting the right messages to customers that will regain their emotions and take good care of them in the financial world. How science can help in attracting and acquiring new customers?

Notes:
😍 Are emotions important when making a decision? 01:01
🤓 How young people make decisions: emotions can be bad for banking decisions. 02:59
🤯 Younger customers are using alternative payment services: emojis as reasons to choose bank service. 03:26
🧠 Stories activate the brain: using storytelling to help your customers to make good financial decisions. 06:05
🎯 Marketing crafted based on behavioral science: affirmation and support that will appeal to clients. 08:20

Links:

Article: https://thefinancialbrand.com/news/bank-marketing/how-behavioral-science-gives-bank-marketers-a-leg-up-acquiring-customers-153126/

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

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Why banks can’t get out of the habit of not using the out-of-branch tools available when they are doing business in the branch? Why is that so hard? Why banks don't value the virtual branch, like the physical branch, and do not enable younger generations to become users of the financial institutions the way they like the best - via digital? These are only some of the questions that financial institutions must work on to get more customers who hold phones in their hands from the age of 2. It is time to innovate!

Notes:
💸 Customer Journey is providing the best insight into your service from a client's point of view. 00:51
📱 Opening account in 15 minutes instead of 25: how about 5 minutes?
🤯 Employees in banks don't use the solutions and services that they make their customers use.03:45
⚠️ Younger generations have expectations about what an online onboarding experience should be: abandonment rates are too high. 05:29
⏸️ Pause in the process is the reason for abandonment: allow electronic transfer to fund accounts. 6:55
⚡ Stop comparing your institution with others but compare yourself with Neobanks.08:12
🤩 How to know if your online experience meets expectations. 08:51

The article used: https://thefinancialbrand.com/news/bank-onboarding/why-banks-need-to-fix-poor-digital-onboarding-experience-147074/

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

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In episode 55 we talked about the Neobank phenomenon. Are they taking away younger customers away from the traditional financial institutions? What if traditional financial institutions could tailor the services for small to medium businesses and startups and assist individuals in starting businesses, providing a checklist, classes, mentorship, events, and training. The key is to market your services as effectively as neobanks without the need to create one, fostering a differentiated and valuable proposition for potential business customers.

⚠️ Neobank creates a compelling argument to some targeted groups to move away from their traditional bank and to come "bank" with them. 00:52
📈 Brex launched in 2017 with a specific purpose of focusing on serving startup companies, and in 2022 they were valued at $12.3 billion: now, they're less suited to meet the needs of smaller customers. 02:04
💡 Target companies Brex left behind to open accounts at your institution and adjust your offer for startups to make them long-term clients. 04:47
✅ Community banks should consider building services that assist an individual in starting a business: David shared several ideas on how to do that. 06:40
❗ Your non-interest service revenue is heavily weighted toward business customers, so you have a vested interest in getting more business customers via calls and programs. 07:47
📢 Potential clients should know that your institution provides a service targeted to their unique needs and mitigates any interest in them looking for shiny, bright online banking options. 08:36
👉 You should market your services as if you were a Neobank. 09:07

Links:

Episode 53: Trouble Ahead for Neobanks?

Article: Brex, which started out serving startups, now says it is‘less suited to meet the needs of smaller customers’

Email David: david@davidpeterson.com

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We all love routine, but guess what? It’s a disaster for our brains!

In this episode, David explores how excessive routine can stifle creativity and problem-solving skills, particularly in organizations such as financial institutions. He discusses how an over-reliance on strict procedures might hinder employees’ adaptability in unexpected situations and limit their ability to identify areas for innovation.

Drawing from personal experiences and research findings, David highlights the “numbing effect” of routine on the brain’s executive functions, emphasizing its potential negative impact on employee creativity and crisis management. He suggests strategies like escape room exercises and continuous thought-provoking activities to counteract this effect and keep employees fit.

Tune in for invaluable insights on navigating the fine line between routine and innovation while uncovering ways to maximize creative potential!

Notes:
📉 David coined 'the numbing effect of routine' term: financial services don’t fare well when knocked off that routine. 00:58
🧠 Too much routine suffocates your brain: there’s evidence that the less you engage the executive functions, the weaker they become. 02:46
👉 A 2017 study reveals a link between heightened anxiety and an inverse relationship with goal-oriented behavior. 03:56
✅ The anomaly might be something that should be examined as the source of a creative idea that might streamline the process, potentially leading to innovation. 04:48
❗ If and when a true crisis occurs, the most important element in successfully remediating the crisis is how immediately the employees take thoughtful action. 06:02
⏹️ A process-oriented business inherently reduces the ability to recognize potential innovations or preparedness for addressing disasters. 07:04
💡 Escape rooms are a great way for employees to work on problem-solving: consider hosting logic quizzes, innovation idea vetting programs or engaging innovation workshops. 07:33
❓ How do you keep your people sharp and ready to go? 09:39

Links:

📌 David's book GROUNDED: https://davidpeterson.com/bookstore

📧 Email David: david@davidpeterson.com
🌞 Connect with David: www.linkedin.com/in/dlpspeaks

🤩 Learn more about David: www.davidpeterson.com

👨🏻‍💼 Consult with David: www.i7strategies.com

⛵ Sail with David: www.i7sailing.com

Resources:
How Too Much Routine Suffocates Your Brain: https://elemental.medium.com/how-too-much-routine-suffocates-your-brain-fcee3cd8444

Escape Room: www.amazon.com/Escape-Room-Box-Werewolf-Experiment/dp/B0752PGG2K/ref=sr_1_5?

In the ever-evolving landscape of banking, a clash of titans is underway, pitting traditional community banks against the innovative disruptors known as Neobanks.

Community banks must revamp digital experiences, embrace storytelling in marketing, and strategically connect with younger demographics.

To ensure long-term success, strategic planning involving senior leadership and dedicated teams is paramount, providing these banks a transformative path to compete effectively in today’s financial sphere.

Notes:
🚫 Neobank is NOT A BANK. 00:57
📱 Neobanks have excelled compared to the typical community bank: prioritizing user experience is what matters. 02:19
📉 About 250 Neobanks are operating worldwide: the surrounding fervor, akin to buy now and pay later schemes, might lead to a spectacular crash. 03:55
🎯 David thinks that Neobanks are created to gain online users and then convert that market share into a deal where they sell out to traditional banks: that way, banks get younger millennials and Gen Z clients. 05:54
👉 In today’s digital banking landscape, it’s essential to offer features and experiences that resonate with younger customers, or risk falling behind. 07:17
✅ Community banks are inherently bad storytellers: it’s a critical skill for gaining young customers. 07:57
❓ Could upcoming strategic planning sessions be utilized to chart a new course, positioning your bank to dominate young millennials and Gen Z markets in 2024? 09:17

Links:

Which Neobanks Will Survive In the Future? https://thefinancialbrand.com/news/fintech-banking/which-neobanks-will-survive-in-the-future-150827

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

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Marketing is an essential part of every organization. Statistics could be more positive when it comes to bank marketing. Bank marketers have a hard job and need accurate targeted data to create very specific campaigns and confidence in their reliability. It's an ongoing problem to resolve. Help focus marketing campaigns that will generate measurable results and outcomes without crossing the creepy line.

⭐ What is Baader Meinhof phenomenon: bank marketers indicated they have access to a lot of data useful for marketing. 01:39
🔵 Profitability is important data, and it's not ranked high enough: if a nonprofitable customer leaves your bank for a competitor, your overall profit goes up. 02:50
👉 Bank marketers are getting more comfortable using the data they have access to, but they are still not very confident about the quality or accuracy of the data they use to make marketing decisions. 03:57
✉️ Get very granular about the specific subset of customers or prospects: snail mail marketing is incredibly effective if targeted to a particular subgroup to which its appeal is uniquely tailored. 04:53
🔴 Give our marketers accurate, targeted data that will enable them to focus marketing campaigns that generate measurable results. 07:56

Links:

Marketing’s role in data analytics: https://bankingjournal.aba.com/2022/08/marketings-role-in-data-analytics/?utm_source=eloqua&utm_medium=email&utm_campaign=newsbytes&utm_content=NEWSBYTES-20220824

Graphic 1: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-1.1.png

Graphic 2: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-2.2.png

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

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Big data centers are getting more and more popular, and it's expected for institutions to use them. Are they necessary for banks? David shares his view on this actual topic. There is a need for a data acquisition tool that can connect to external systems without centralizing data. The speaker outlines three key outcomes for effective data management: dashboards, graphical reporting, and targeted marketing lists. The episode concludes by urging banks to focus on outcomes that drive business success and improve customer experience, rather than getting caught up in the pursuit of big data solutions.

Banks should be good stewards of their data and not be embarrassed or afraid to use it.

Notes:

🤔 Banks shouldn't be chasing a solution that fixes a nonexistent problem. 00:55

🟫 Bankers have several types of data like financial, customer, and transaction data: there's an idea to create a new repository that extracts from all the existing data sources into some single composite database. 02:40

😵‍💫 Even if you get all the data extracted and normalized but gets dated: daily update of all data from every source. 04:08

✅ There are three categories of data management outcomes - creating dashboards, graphical reporting, and marketing lists: deliver value beyond the cost of acquisition of the chosen management tool. 05:21

👉 The tools you're looking for should specifically address how you accessed third-party databases without pulling all of that into a consolidated new database. 08:16

❗ Tools you choose should perform the outcomes that you want: smart bankers are the ones who force vendors to show specific outcomes. 09:31

🤩 There are big payoffs for the banks that can get their arms around their data: improve the gross margin, internal efficiencies within their institutions, and customer satisfaction. 12:16

Links:

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

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Where failure is discouraged, much less rewarded, why would anyone stick their neck out on the line, bringing a creative idea? Innovation occurs when failure is an option.

Challenging the status quo and allowing failure, will initially lead to disruption, however, ensuring failure leads to learning will allow for improvement in banking as a whole. There is much to be learned about the challenge of allowing failure within your organization.

Notes:
⛹️‍♂️ Innovation occurs when failure is an option: the players who lead baseball leagues and home runs almost certainly lead that league into strikeouts - apply that to your business. 01:20
✅ Not only should bankers stop punishing failure, but encourage it using the fail-fast fail-often model. 03:00
👉 Executives should encourage innovation and responsible risk-taking across the entire enterprise: ideas that don't go anywhere are not a strikeout - usually, it takes 30 ideas to get one right. 04:01
⁉️ Innovation occurs when failure is an option: will you take up the challenge to encourage failure at your organization? 06:07

Links:

The Financial Brand Fear of Failure Hurts Innovation in Banking: https://thefinancialbrand.com/news/banking-innovation/fear-of-failure-innovation-in-banking-deming-management-transformation-151415/

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com