CBA Live 2011 Takeaways
CBA Live 2011 in Orlando showed a focus on action instead of talk. Numerous of the attended seminars held the themes less of “the sky is falling” and more “be pragmatic.” CBA Live 2011 echoed some of what we heard at Best Practices in RETAIL FINANCIAL SERVICES. Better customer interaction is the key, whether it is through better segmentation in developing product, determining fee structure, more organized cross-selling in the branch and call centers, or better leveraging of new technologies for brand awareness.
Some of the highlights for us were:
Branch is still the preferred channel across all demographics –
It impresses us that branch network still remains the primary way consumers prefer interaction. What was really impressive was while they prefer their primary bank for home equity lending, rate and fee are their top decision criteria. Does this mean that Home Equity needs to be an anchor point of your customer centric strategy? Should your relationship pricing model center around losing a little in rate to gain share of wallet? Take it back to your customer strategy lab and let us know what you think.
Embrace the Consumer Finance Protection Bureau-
The keynote address served as a rallying cry from Richard Davis, CEO at US Bank. Banks can’t just resort to business as usual and assume that the regulations will take care of themselves. We are seeing a shift in the power pendulum and as bankers; the sphere of influence has to change. Regulators and legislators have a bigger role in shaping the future of retail banking than in years past. Make sure you have an information network that keeps you aware of changes in the government and best practice trends in the industry.
Transparency Isn’t All Bad –
BBVA Compass is welcoming the transparency that comes with new regulations. While bankers will have to fight to stay up to date, perhaps the trends around consumer sentiment will start to shift. When consumers trust that the fees they are paying are for value-add services and they know where their money is, they might start engaging more with their bank. This gets back to the point about social media. The hard currency in social media is trust. For your institution’s brand to flourish over the long term it will have to be trustworthy, transparent, and engaging. Looking at the CFPB as the vehicle to change customer experience isn’t just a good idea, it may become an imperative for future growth.
What were your takeaways and do any of these resonate with you?
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