How Small Banks Can Overcome Big Banks’ Lock on Mobile
Kevin Tynan, senior vice president for marketing at the $850-million asset Liberty Bank for Savings in Chicago, says community banks face a major threat from big banks in the realm of mobile banking. With online banking used by 51 percent of U.S. adults and 61 percent of Internet users, he says community banks cannot afford to ignore the demand for online bill-pay, deposit capture, and money transfers. The 200 biggest North American banks will spend $1.5 million on average on mobile and online banking projects in 2014, according to Technology Business Research, but Tynan says such investments are cost-prohibitive for smaller banks. He makes several recommendations for community banks that want to compete with the big banks: shoot for the middle ground, rather than try to achieve technology parity with big banks; pursue their niche, looking for customers who want personal service and a neighborhood commitment and identifying cross-marketing opportunities; personalize their advertising, brochures, and websites with the faces of local employees; roll out a hyper-local marketing plan; make it easy for big bank customers to switch banks with offers of low-cost checking or debit accounts; compare their fees to their larger competitors; and hold a few focus groups with non-customers to improve their marketing plans.
From “How Small Banks Can Overcome Big Banks’ Lock on Mobile”
American Banker (01/31/14) Tynan, Kevin