Is Social Media catching banker’s attention?  It should be. 

Social Networking is becoming critically important in managing a company’s brand, getting product feedback, and communicating with customers.  Unfortunately, many bankers are viewing Social Media with the same skepticism with which they viewed the Internet 10 years ago.  Executives across all industries are starting to realize the extent to which Social Networking is revolutionizing the way people communicate and the speed in which information (good or bad) can spread across the Web.

Today's marketplace is complicated by significant changes in the business; new products, better informed customers, changes in communication, intense international competition, an increasingly restrictive regulatory environment, and advancements in analytics.  With the complexity of these challenges, we forget the simple rules that can set you apart from your competition:

• Listening to your customer
• Knowing your customer
• Promoting your brand
• Developing consistent treatments
• Having a best customer unit
• Maximizing every touch-point
• Monitoring the competition
• Considering the economy

Pricing is one of the most effective ways to manage a credit card portfolio.  It can drive new accounts and card usage, help control losses, retains or drives away customers, and impacts yields and balance growth.  But pricing is much more than simply deciding whether to offer cards at 11.99% or 13.99%.  Optimizing pricing for a prescribed goal or set of goals, such as revenue or balance growth, requires a cross-functional/multi-disciplinary view across multiple business areas.  Understanding the impact of timing in making price changes, leveraging communication efforts, utilizing risk management techniques such as credit line increases, the impact to balance growth and losses, and utilizing sophisticated analytic techniques including multivariate randomized test designs and price elasticity models are all critical to the success of the exercise

Emerging from what is most likely the worst financial climate in recent history, the card industry remains in a state of troubled waters and at the center of extreme public controversy heading into the New Year.  In 2009, a year of regulation and change, critical forces in the form of new legislation and economic downturn converged to create a “perfect storm”.  Challenges, change, and continued uncertainty will remain key factors during 2010 as card issuers struggle to balance compliance and customer good will with profitability and shareholder return.

Most financial institutions have an online presence and at least some online marketing activity.  Traditionally, direct mail and branch locations have been the biggest marketing channels for financial institutions.  However, the ease and ubiquitous availability of various online channels and mediums to access customers via websites, targeted emails, banner ads, SMS, MMS, etc. makes online marketing a requirement.  As the list of options has grown, it has become increasingly clear that without a robust online presence and corresponding marketing plan, your marketing strategy is incomplete.

Data quality problems cost US businesses more than $600 billion a year.  These cost estimates would be significantly higher if lost revenue due to customer attrition and customer dissatisfaction were included.  Data errors cause the steady erosion of an organization’s credibility among customers and suppliers which has a lasting impact on an organization’s bottom line.  Our data experts experience first-hand the lasting impact of data errors while resolving data quality problems in a variety of US businesses.  Data errors occur in all industries and provided below are a few examples that our experts have encountered over the years.

With imminent changes to overdraft fee policies, banks must contemplate the impact and determine what to do.  Bank of America and Chase recently announced significant changes in their programs that go into effect as early as October.  Some were similar to changes being proposed in Washington, although each bank has elements that differ.   While the ultimate financial impact on a bank will vary based on their customer base, program design and other key factors, most banks are not aware of the complexity of the changes.  
 

The political and economic events of 2008 & 2009 have created new challenges to deposit platforms and products that could have negative results on your future earnings. To fully appreciate what could happen, here’s an overview of possible sweeping changes poised to impact you this year.

It is true that change is coming.  It’s also true that it has arrived.  The Credit Card Act of 2009 has been signed into law.  The internet is inundated with articles about how this Act will positively impact customers, but very little attention has been paid to how the Act negatively impacts already-struggling financial institutions.