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BirdsEye View spotlight on small business paymentsLiat's article got a slew of responses. So many people identified with her words, either as marketers or as peers. Eli Kramer, my fellow director at Sun Bank, wrote in response to Liat's article: "The question is not retaining Liat's business; it's making money on her... I can retain her and all others like her by creating a virtual Starbucks living room --- but unless I can sell, to Gen Y, brown water (Starbucks coffee) at $3.00 per cup, I'm not sure how to earn on them... with the exception of transaction fees on debit and credit cards....not only are they broke and save -0-, thanks to modern medicine, they won't inherit our money until they are 70 years old.... ". Pat Sze-Benash, Marketing Director for Webster Bank, wrote: "Thanks for sharing once again very insightful comments and especially your daughter's article about why she is so loyal to Wells. We are working on our value prop and the current version includes the word ally-- so when I read her comments about how Wells has proven they're in my corner I felt it absolutely reflected the intent of the word ally as it exists in our value prop. I've shared this with some others on our cross functional team. It also reinforced to me the importance of attracting some of the under 25 crowd (which we have little of) despite the fact that they are not profitable -- because they become fiercely loyal if they stay in footprint and have a positive experience with their first bank! " Scott McBrair, Director of Retail for Webster, also wrote: "I love Liat's article! My son, Troy, is also in the process of moving from his dorm to an apartment and guess what: needs to order checks after banking electronically for the past 2 years. So I've gotten text messages (not a phone call) saying when am I going to get my checks, Dad? And on the rare occasion h's gone to the branch I periodically get the text message do you know what time your branches close? followed quickly by where is the nearest branch that has real hours?. He is nocturnal, but we in banking still often have bankers' hours. Yet, he loves us (or more appropriately said, loves the staff at our local hometown Webster branch)". Article synopsis: The opportunity for selling payment services to micro and small business is HUGE!!! Spotlight on Small Business Payments You know I've been touting attention to bank payments services for the past two+ years, talking again and again about their potential, profit implication and retention impact. Let's consider the following set of facts (this article has a lot of facts and a few conclusions): On small business:
On Small business and payments:
On financial institutions:
Implications:
In today's world, where deposits are king and fee income dollars are highly valued and scarce, targeting small business payments services is an opportunity that should not be missed. |