While we have many ways to refer to our services. Ultimately, banks help people who:
- Need money they don't yet have
- Have money they don't yet need
- Want payments made accurately and simply like they expect
- Want accounting and documentation for all their financial matters
So, yes for some clients we are storing their money. However, we find ways to efficiently and effectively put that money to use while in our possession. Check out Matthew 25:14-30 for additional reference on the anticipated consequences of good and bad stewardship. You will find that even in ancient days they frowned on merely storing money without seeking to add value in the process.
A more specific response - Clients have a variety of motivations. We are motivated by pain, pleasure, and the anticipation of those two. While the status quo is a powerful thing, depositors can reach a point of capitulation where they move from contentment to discontentment. That shift happens from changes in security, confidence, awareness of alternatives, and materiality of consequences (cost, convenience, simplicity, consistency). While an offer may be held constant, changes in the alternatives available can make a formerly acceptable offer no longer acceptable for depositors.
While individual behavior is very difficult to predict, look at the growth of online only banks in recent years and you must acknowledge that they have uncovered opportunities to create a compelling value proposition.
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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 05-08-2018 08:58
From: Steve Kinner
Subject: Tuesday Topic: Are you just storing money at your bank?
Based on results from a customer survey it fielded, Marcus (by Goldman Sachs) just announced: "More than one-third of Americans with savings accounts (38%) chose to open a savings account with their current banks so they could do all their banking in one place, compared to only 12% who did so because the interest rate was better than other options. On top of that, nearly three-quarters of Americans with savings accounts (74%) said it would be accurate to describe their bank as a place that stores their money vs. 22% of them who say it is accurate to describe their bank as a place that makes them money." Marcus paired the findings with a new campaign that advertises a high-yield savings account that has an APY of 1.6%, which it noted is 4x the national average. What do you think? Will Marcus find success paying up for new deposits or will customers stay put, seemingly preferring the convenience of one-stop shopping and storing of money with their current bank?
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Steve Kinner
Promontory Interfinancial Network
Arlington VA
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