Community Banks and Credit Unions Can Gain Market Share with 1.24M Households in Play

Community banks and credit unions have a lot of opportunity to grow their market share, according to our most recent benchmarks. Whether it’s through growing loyalty or demonstrating a better understanding of gender differentiation in bank marketing,  opportunity abounds.

In New Jersey and Pennsylvania, there has been a sharp rise in the amount of market share in play. A shocking 1.24 million households across New Jersey and Pennsylvania are currently looking for a new bank. Two-thirds of bank customers in this region are up for grabs. This represents enormous potential for the savvy community bank or credit union manager who takes the time to understand why they’re unhappy where they are – and of course, it represents a big risk for those institutions that will be losing more than their fair share of current customers.

The most important differentiator community banks and credit unions have is their ability to deliver an excellent customer experience. When bank customers feel valued, listened to, and cared about at their bank, not even better rates can pull them away. This isn’t just speculation – it’s backed up by the numbers. Just like today’s retail consumer and today’s traveler, today’s bank customer is willing to pay more for a better customer experience.

What Does Today’s Bank Customer Want?

Our benchmarks are a massive scientific study across several states in which we interview hundreds of thousands of consumers and businesses about the banking institutions they use, asking them to evaluate each of the banks and credit unions they use on 53 different metrics. Today’s bank customer:

  • Expects your community bank or credit union to have the best technology and be as innovative as big banks
  • To deliver a more personal and more customized experience in which they feel known, recognized, and valued
  • To have a consistent experience across all touchpoints

What Don’t Bank Customers Want?

Bank customers don’t want runaround. They expect your staff to know how to use all of your product. They don’t want to repeat themselves because they called in, then visited a branch. They don’t want to work with poorly trained staff who can’t answer their questions. Read more about avoiding customer flight in the winter 2019 edition of Banking Mid Atlantic.

You Can’t Take Advantage of the Opportunity without Knowing Where You Stand

Our latest benchmarks make one thing clear: There is a lot of opportunity for community banks and credit unions to grow, but it’s going to take not only delivering on customer experience but knowing where your bank stands in comparison to your competition. When you know what your customers and prospects think of your bank, you can make informed decisions to attract more loyal banking customers. Request your benchmarks now.

Why XX Should Mark the Spot of Your Banking Outreach

banking new england jan feb bruce paul
Image Source: Banking New England Jan/Feb 2019

In the latest issue of Banking New England, Bruce Paul discusses why community banks and credit unions need to make sure they are doing what they should to cultivate female customers.

Banking New England takes a look at both the importance of women as bank customers and how banks can solve the gender problem in leadership.

Customer Experience Solutions analyzed over a half million reviews from men and women to discover differences by gender in banking across the region.

Read the full article in Banking New England Jan/Feb 2019.

Consumers Are Looking for These 3 Digital Banking Services

Community banks have a lot of advantages over their larger counterparts, but that’s no reason to slack on technology. Regardless of the size of the bank, consumers expect certain digital banking services. Luckily for smaller banks and credit unions, the latest Benchmarks reveal that most households and businesses assume smaller institutions have about the same quality digital tools as the largest banks. Beyond delivering amazing customer service and employing strong community engagement practices, be sure these digital banking services are up to speed:

  1. Mobile Banking

A rapidly growing percent of consumers want everything accessible on a mobile device. The latest CES Banking Benchmarks reveal that 64% of consumers expect to increase their mobile and online banking in the next 12 months. Although you want your customers to feel comfortable coming into the branch, they shouldn’t have to come in for routine transactions if they don’t want to. Remote transfer, bill pay, and remote deposit have grown by up to 35% per year at some of the more proactive institutions. Person-to-person (P2P) payments are also more popular than ever, with friends using Venmo and PayPal to cover a shared cab rather than exchange cash. It’s essential that your mobile app can communicate with the preferred apps of your consumers, making every monetary transaction as easy as possible.

  1. Financial Planning

Consumers want more from their bank than the exchange of money. Financial planning is high on the list of what community banks should be offering, and this shouldn’t be limited to an in-person visit with a representative. Give your consumers the freedom to use files stored on their personal devices to make comparisons with your website or app. Budgeting, loan calculators, and tax preparation are only a few financial planning tools that are valuable to your customers. And once they start using these tools with your bank, they are far more likely to use your value-added services in the future.

  1. Online Account Management

Community banks can’t afford to forget about basic account management services. There’s nothing more annoying than having to fill out paperwork for something like a change of mailing address when it should be something the customer can do online. Allow your consumers the flexibility to make changes to their account digitally, without the hassle of paperwork or a trip to your branch. It should be easy to change contact information, switch mailing addresses, and check balances of different accounts. It may seem like common sense, especially since convenience is valuable to your consumer base, but these basic functions are often overlooked or not properly developed.

Bank technology is easily available, and it doesn’t take much to implement tools that make a difference to your customers.  An oft-forgotten aspect of employing banking technology is how important it is to educate your own employees on how to use them.  If your employees do not know how to use the technology you offer your customers, you can be assured that your customers question how good your bank really is if the employees don’t know how to bank there. During the interviews CES conducts for the Benchmarks, we see thousands of comments from customers who question the quality of their bank when they believe the bank’s staff themselves are not expert users of the banks’ technology.

An investment in digital banking services is no longer an option if your community bank wants to remain competitive. Community banks should always leverage their unique position as a member of the local community, but they must also deliver the level of functionality consumers expect from every bank large or small.

There is enormous opportunity for you to grow your community bank or credit union, but it starts with knowing what existing customers and prospects think of you compared to your competitors. Take action now and request our benchmark study for your region.