Community Banking
The message from speakers on day one of Bank Director’s 2023 Acquire or Be Acquired conference was that community banks should focus on their fundamentals – and their customers in the face of today’s novel environment and uncertainty.
Good advice I’m sure – as an old-school NFL fan, I’m really big on basic blocking and tackling as essential to success.
One speaker Mac Thompson pointed out that community bankers struggle to quantify the depth of their customer relationships; the need to quantify and analyze customers loans and deposits, focus on bringing customers operational accounts to the bank. I like this advice too.
But, somewhere in the summary of key takeaways from day 1, I’d like to have seen messaging on the importance of customer centricity ─ figuring out what customers really want and delivering it.
Technology/Digital Banking
Across the globe, banks serving small and medium sized businesses are transforming to compete, per KPMG’s research; moving to a fully digitally connected bank. Two core messages for community banks embarking on a journey to blend the human touch with seamless digital banking. Efficiency ratio pressures are not going away; you need to focus on products and services that are really needed by the customer and maximize where you place your capital.
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Strategy
Why Good Strategy Arguments Make Better Strategy (MIT Sloan Management Review)
Strategy selection at top performing community banks is about making well-informed choices. These choices often result from honest discussions about unique capabilities and inherent risks between decision-makers and those responsible for executing the decisions.
Per Sorensen and Carroll’s article, arguing is the best way to do strategy, provided the arguments follow established rules and are rooted in principles of logic. Reasoned debate and strategy mapping helps stakeholders understand how others see the situation and arrive at a shared way of thinking. The result: superior strategic execution and learning.
Business Process
Get Future Ready without Breaking the Bank
Despite major technology investments in operations, bank efficiency ratios remain stubbornly high.
In this podcast Michael Abbott of Accenture clearly explains how evolving AI cognitive tools offered by cloud-based companies can help banks make real advances – in lowering costs and delivering a better customer experience.
The premise – anticipate the customer’s intent, solve the problem before the customer shows up (at branch, on phone, etc.), cut significant wasteful expenses. The benefits – more time for customer-facing employees to have real conversations with customers, expanding relationships, and driving revenue.