KQ Article

Bank and credit union executives face tremendous pressure to generate new business. Under such pressure, financial institutions make mistakes. Trading long-term advantage for short-term gain is only one of these mistakes. The bigger problem is investing heavily in new products, new technologies and new marketing strategies that don’t matter much to customers.

Perhaps no issue is more troubling than the ongoing commoditizing of core offerings such as checking, savings and loans. Your clients see little differentiation between you and your competitors, which means the industry risks disruption. And the most likely disruptors are companies that have great brand equity but do not currently offer your core offerings.

We already see signs of entry by credit card companies such as Capital One, and brokerages like Charles Schwab. Top brands like Fidelity or Goldman Sachs have the credibility to offer traditional banking products alongside their esteemed portfolio offerings. Wal-Mart and other retailers with marketing muscle also present a serious threat to banks and credit unions.

So what can you do? Instead of trying to contain the leaks, how can you take the offensive? The answer is to see things squarely from your customers’ or members’ perspective, so you can prove to them that you care about exactly the same thing they do. The answer is to have a meaningful brand strategy that transforms their experience into something so compelling it’s priceless.

DIFFERENTIATING YOURSELF
Many bank and credit union brand strategies today focus on building awareness, developing a common look and language and establishing a corporate identity. This is much like showing up at football game with cheerleaders but no offensive line. If you are going to create meaningful brand experiences today, you must address all of your partners by answering the questions they need answered.

A BUILT-IN ADVANTAGE
In the financial services industry, most of your customers and members have a vested interest in building a relationship with the people who manage their money. That means you don’t have to stretch too terribly far to identify experiences that matter to your customers.

But each day you wait to get started represents an opportunity unredeemed. With every face-to-face interaction, your employees are defining your brand in the minds of your customers or members. Now is the time for your organization to take collective strategic control of this definition, and to begin differentiating your brand experience on things other than price, features and commoditized products.