Unless your bank still regards the marketing department as a glorified arts-and-crafts squad, you realize the importance of digital marketing in today’s competitive environment. But should you build your own in-house digital marketing department? Or contract with an outside digital marketing agency?
Pub 2 2020 Issue 11
This year has presented bank management teams with many issues to juggle, many of which seemingly pull in opposing directions and most of which were not firmly on the radar to start the year. Such is life in 2020.Some banks’ primary concerns stem from the fact that the industry has seen a shift in liquidity. Balance sheets are awash with deposits relative to recent periods while securities holdings have come down relative to assets. The build-in balance sheet liquidity has come in the form of cash, with an unusually high 7.6% of assets held in cash and equivalents as of June 30.
After living through the financial upheavals and a general sense of uncertainty over the past eight months, consumers are feeling a bit of fright following Thanksgiving. Dealing with ongoing financial challenges is scary for consumers who have lost their job, have seen their hours decrease, or worry about what the upcoming months may bring as they try to stay afloat financially.
With the recent implications of COVID-19 still lurking in the shadows, many branches are facing quite the conundrum – Do we spend money to upgrade outdated branches? If so, how much can we spend? Or, do we hold off on the spend altogether and hope it does not affect our ability to remain competitive? On one hand, investing in the branch can be a little unsettling as it means allocating money to an asset when times are tough, business may be slow, and money may not be readily available; but on the other hand, you’ve walked the lobby of your outdated branch enough times to find the 20 year old coffee stain on your plaid carpet floor in your sleep.
It may be a gross oversimplification to say this, but in many ways, community banks deal with their favorite broker the same way you deal with your dry cleaner. For one thing, there’s repeat business; we’re not a durable goods vendor that you visit every three years. For another, fixed-income brokers sell a set of relatively fungible products. For another, since there are plenty of us out there, we’re obliged to stay pretty much on-market with our prices.
Today’s rate environment is compressing net interest margin for community financial institutions. So generating non-interest income is more important than ever. But not just any non-interest income. Done right, the revenue you drive can add value to consumers’ lives and deepen your relationships with them.
PACB’s October golf outing provided community bankers, and PACB Associate members an opportunity to connect and enjoy golf and the fellowship shared between colleagues and friends. As rain ended and the skies cleared, PACB welcomed nearly 50 players who competed for team and individual prizes on the beautiful Hershey CC East Course. The day concluded with a luncheon and prizes presented by PACB’s CEO, Kevin Shivers.