Primary Relationships or Bust

Banker shaking hands with customer across desk

By Ryan Harbry Customer loyalty is essential in every industry under the sun. In banking, it matters even more than most industries because not only do unloyal customers represent a missed opportunity for revenue; they have the potential to cost more than they are bringing in — creating a drag on earnings. And, if we’re…

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Competing with the Gigantosauruses and Digitalbatrosses

I know you’re thinking that this isn’t a great analogy because dinosaurs are extinct, and an “albatross” is a psychological burden that feels like a curse. But gigantosauruses are (OK, were) huge, powerful animals (like the Big Tech companies) and albatrosses are one of the fastest species of animals, flying at nearly 80 miles per…

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Squirrels? Aww, nuts!

Squirrel on road next to white SUV

By Dave Pond A few weeks ago, my 16-year-old daughter, Mallory — with her sights firmly focused on a successful driver’s license road test at our local DMV — wanted to practice parallel parking in my trusty ol’ Ford Explorer. (After all, it was smaller than her mom’s minivan.)  However, when they cranked it up, the…

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Tales of Decommoditization

money and padlock

By Ryan Harbry Commoditization has been around for about as long as the banking industry itself — there’s no avoiding it.  Whenever a good or service comes along and is successful (proving its proof of concept), other companies throw their hat in the ring, join the market, and compete. In legacy industries like banking, so…

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BaZing’s Got My Back

Car trouble - couple looking under the hood

By Clay Crenshaw Having worked with financial institutions over the last few decades on their retail checking account strategies, I find myself so focused on things like fee income, analytics, and net interest margins that I forget how relevant and impactful our products can be.  If you’ll indulge me, I’d like to share a quick…

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Dave Crook Shares Three Strategies for Growing Primary Checking Relationships

Even before the coronavirus, there was a passionate renewal of relationship banking’s importance, with a specific focus on primacy — primary versus non-primary households. What’s evident is that all relationships are not created equal: Half your customers see your FI as their bank and about half don’t. It’s the curse of free checking. Free worked…

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Reinventing the Checking Account

Is it “game over” for mid-size banks and credit unions when it comes to checking accounts? Are the threats from deposit displacement, P2P providers, Amazon, and megabanks insurmountable? No.  Despite the prevalence of free checking accounts, many consumers express interest in switching to that hypothetical Amazon-offered bundled checking account we discussed earlier in this report.…

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It’s Time to Kill Free Checking

Why would consumers show more interest in a fee-based account from Amazon than a free account? One reason is surely the value-added services bundled in. But there’s another reason: Consumers have learned (the hard way) that a free checking account isn’t really free.  As one bank customer, commenting online, put it:  “The issue isn’t wanting…

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The Threats to Checking Accounts

person using laptop computer

Over the first half of the 2010s, the number of checks written in the United States declined from 41.9 billion to 17.1 billion — a nearly 60% drop. Bad news for checking accounts, right? Wrong.  According to the FDIC, the percentage of U.S. households without a checking account dropped from 8.2% in 2011 to 7% in…

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