Headlines, snapshots and misc. stories of interest
Wednesday, November 19th, 2008Here are recent stories of interest from around the web.
Click on the hotlinked headlines to read more.
Article blames WaMu problems on ‘café-style’ branches
An American Banker article suggests Chase’s takeover of WaMu is some sort of referendum on innovative branch design, and that traditional, conventional branches are the way to go.
Beyond the fallacious inference that WaMu’s branch design had anything to do with their collapse (hint: subprime mortgage lending), the article also described the bank’s the branches as “cafés.” There are a lot of words to describe WaMu branches, but café? Nope, doesn’t fit.
WaMu never ever tried to make their branches “hangouts.” They didn’t provide any comfy seating. There wasn’t any ambient alternative music. There wasn’t any free coffee. What ING Direct does can be called a café, but not WaMu’s Occasio branches.
The only thing WaMu did that was really any different was replace a traditional teller line with transaction “pods,” which supported the bank’s emphasis on transactional efficiency.
Research revises playbook for 700+ Wells Fargo copywriters
Wells Fargo researched how effective its written communications were. Following its ethnographic study (defined here), the bank shared its learnings with 700+ content writers in 30+ workshops. Among the findings:
- Marketing messages, especially those with presumptive language like “Congratulations!” or “Good News,” were viewed quite negatively; customers used words like “ploy” and “scheme” to describe them.
- The bank could mitigate negative reactions to bad news like a notice of insufficient funds if the communications provided relevant advice.
- Many consumers view the bank’s Website as the primary visual reference point, noticing differences with layout, color, and other design elements across communications.
Oh happy days… Credit union logo jet, circa 1999
The economy sucks now — the salad days are over and the gravy train has left the station. But less than a decade ago, even credit unions could afford to put their logo on jets.
Great advice for building your financial brand
October’s issue of American Banker has a fantastic article on bank branding — especially for its length (just over 700 words). The author, Cristi Kirisits, VP/Marketing at Silverton Bank, makes a number of excellent points, including:
- Your brand absolutely has to deliver on its promises
- You create familiarity and trust by delivering a consistent experience
- Every interaction is a make-or-break experience that will leave a lasting impression
- Establish an internal team of “brand champions”
- Only one competitor can be the cheapest — all the others must use branding
Earlier this year, The Financial Brand wrote about how Cristi’s bank changed names and became Silverton. They definitely “get it,” and are walking their talk.
Shrinking footprints, growing profitability
According to an expert quoted in a CUES article, branches traditionally break even with deposits in the $30-40 million range, although branches with smaller footprints and fewer employees can turn profitable at under $15 million. That may help explain why the average square footage of branches is dropping from 3,900 in 2004 down to 3,500 last year. You can even get away with 2,500 square feet in some markets. And some in-store branches are only 600 square feet.
Login to Wells online banking, see “safe & sound” splash screen
As Netbanker notes, the best time to get your customer’s attention is right after they log in to look at their account. That’s why login-screen marketing should be in your mix. Just don’t overuse it, or you’ll piss people off.
575 branches get new TD signs
Grade-A prime media placement
The Credit Union 24 ATM network says credit union members saved $20 million in fees so far this year by using its 50,000 surcharge-free ATMs nationwide. At an average fee of $1.50, that means there were 13 million ATM transactions, or an average of 266 transactions per ATM for the year (that’s about one transaction per ATM per day). Kudos to the Credit Union 24 network for not dinging members with fees. Now, can we maybe freshen up the logo a little?
The biggest collection of bank logos ever
BofA has organized a “war room” so that when a headline in the news raises flags with consumers, the bank can figure out how to respond. They also say they have no plans to cut their $2 billion marketing budget in 2009, but haven’t ruled it out either. One more interesting thing: They say they’re trying to work in the word “guaranteed” more often to reassure anxious consumers. For instance, BofA’s CDs now feature a “guaranteed rate of return.”
The chairman of Fortis says the name has acquired a negative connotation due to the global financial crisis. (Fortis really took a big hit in Europe.) They don’t yet know what the new name will be. They just think the old one is baggage that needs to be dumped.
ING’s singular focus on helping people save money is behind the love, and the bank is staying on-message with its meltdown marketing. The article ends with a quote from The Financial Brand.
Yeah, but if the numbers coming from Vancity Credit Union are right, it looks like this one single credit union gave away $3.67 million in 2007. That’s about 10% of all donations by all Canadian credit unions combined. Of course, their brand is built around “doing good” and “giving back.”
The 37-year-old told his clients that he had hated the business and had only been in it for the money. He declared he would no longer manage money for other people, because he had enough of his own. [Editor: Who else wants to know where Mr. Lahde is putting his money today?] He concludes with a plea to legalize weed.