The Financial Brand Insights - Fall 2022

Lean Into the Changing Landscape to Power Growth Many traditional financial institutions today are struggling with reconciling the “way they’ve always done things” with what has long been referred to as “the consumer of the future.” Unfortunately for these institutions, the future is here and now, and today’s consumers want something different and something more. But it’s not too late to flip the script and bring your financial institution from merely surviving to thriving. How? By taking a deep dive into every “what” and “why” that makes their financial institution special and also by identifying the gaps. Evaluating the strengths and opportunities thoroughly is important here. But if we’ve learned anything from the way fintechs are revolutionizing the industry, it’s that consumers need and want financial institutions to offer more. A Missed Opportunity: Many financial institutions are sitting on a treasure trove of data that, when activated appropriately, can help target and maximize growth efforts. For the opportunities, lean into the lessons fintechs have taught, and where possible, put your own spin on them. A tailored approach to a proven fintech formula allows banks and credit unions to maximize their biggest superpower: relationships. That is one component that a fintech simply can’t compete with. While the banking industry has traditionally identified transactions as the key business driver, recent consumer preferences and best practices have shown us that relationships and brands are

By Tim Klatt Director of Retail Strategies and Head of Vivalociti at La Macchia Group

TO GROW IN 2023:

Leverage Your Data Strengths

While the growth of fintechs is nothing new, the grace period for traditional financial institutions to come to terms with fintechs’ undeniable prowess is coming to an end. Inaction at this point could cost a bank or credit union its reputation and its future. Instead of viewing fintechs solely as a threat, forward-looking financial institutions have accepted that fintechs rose from unmet consumer needs and have carved out their own place to more directly address those needs. Financial institutions have a choice to make. Will they let fear of the unknown win, and throw in the towel? Will they let the industry evolve around them and simply hope for the best? Or will they embrace change, find opportunity in evolution and gain momentum towards a new and better future? Most financial institutions that are thriving today have firmly aligned their strategy and resources behind careful and considerate evolution to stay true to their brand, while meeting the needs of today’s consumers. The rest have some decisions to make. Relationships are financial institutions' superpower. As they come to grips with the lasting transformational impact of fintechs, banks and credit unions should shift focus from transactions to interactions, playing up their strengths by using data to serve consumers, not sell services.

73

74

THE FINANCIAL BRAND INSIGHTS FALL 2022

THE FINANCIAL BRAND INSIGHTS FALL 2022

Powered by