Since Mercantile Potomac Bank began holding Community Shred days last year, thousands of people - including many noncustomers - have shown up at its parking lots to destroy old bank statements, credit card bills, and anything else that identity thieves could fish out of the trash.
The idea was to ease fears of ID theft, but along the way the Gaithersburg, Md., bank discovered a side benefit: increased name recognition.
Hits to Mercantile Potomac's Web site and inquiries to its call center have spiked after every shredding day, said Bryan Naylor, vice president and director of marketing at the $2.3 billion-asset bank. And Mercantile's loan officers mention the quarterly shredding days, which started in mid-2005, in their sales calls.
"This continues to be a community service, but we obviously want something out of it for us - namely, brand awareness," Mr. Naylor said. "Rather than taking out a newspaper ad, we're out there providing this service for free for four hours [for each event], so the next time people make a banking or financial decision, we're in their thoughts."
More and more banks are holding shredding days for customers and noncustomers to help deter identity theft and to turn appreciative strangers into new customers.
Columbia Bank, a subsidiary of the $2.54 billion-asset Columbia Banking System Inc. in Tacoma, held its first Shred Fest Sept. 23. Representatives from the state's attorney general office and from the Tacoma Police Department were on hand to give tips on preventing identity theft.
Columbia marketing officer David Rosholm said that more than 125 people showed up, and he said the bank plans to hold as many as eight such events each year, covering all the markets in the five counties it serves.
Shredding days are a good idea, said Dave Martin, the executive vice president and the chief training consultant at NCBS, a SunTrust Banks Inc. subsidiary that provides consulting, training, design, and construction services for retail banking programs.
"Anytime you can attract people who would have no other reason in the world to be standing in your parking lot, and then provide a service that creates good will - what more could you want out of a marketing event?" Mr. Martin said.
Banks would fare even better if they invited local media to co-sponsor the events, and offering free refreshments - inside the branches - can't hurt, he said.
Mercantile Potomac does both these things, partnering with the local NBC affiliate. Mr. Naylor said the television station has a vested interest in publicizing the events as much - and as vividly - as possible. The bank has also partnered with the city of Washington to hold a shredding day at a municipal parking lot.
Among Mercantile's other partners is the document shredding company Shred-it. Its most recent shredding event was held Saturday in the parking lots of two of its branches.
Mr. Naylor said it is hard to determine how many checking accounts Mercantile Potomac has opened as a result of the events, particularly since it recently inherited the accounts of James Monroe Bancorp Inc. of Arlington, Va. Mercantile's parent, the $17 billion-asset Mercantile Bankshares Corp. in Baltimore, bought James Monroe in July.
But a good number of the 1,200 to 1,500 people who come to each event enthusiastically thank the bank, and they are probably telling their friends about it, Mr. Naylor said.
"We'll continue to do these events, because they create top-of-the-mind awareness," he said.
National Penn Bank has had such good attendance at its shredding days that it is considering handing out coupons for special bank offers at next year's events, said Linda C. Hill, director of retail marketing for the subsidiary of the $5.2 billion-asset National Penn Bancshares Inc. in Boyertown, Pa.
"We have the opportunity to talk to people while shredding their documents or giving them food, and giving them these coupons could be a nice way to thank them for taking part," Ms. Hill said.
West Georgia National Bank does not hold shredding days but offers free shredding of bank documents for customers anytime during branch hours in its My ID program, said H.B. Rocky Lipham 3rd, the president and chief executive of the bank and its parent, the $533 million-asset WGNB Corp. in Carrollton, Ga.
West Georgia's package also includes a debit card with the customer's photo and signature on the front, computer-based photo verification at the teller line, and other measures to help curb identity theft. Additionally, the bank provides assistance for customers who have had their identities stolen.
Customers pay $9.95 to get their photos and signatures on their debit cards; every other feature of the My ID program is free, and every new customer gets those, including the free shredding. About 50% of the new customers buy the special debit cards.
"There have been people who tell us that they are switching to our bank because their old bank would not do these things for them," Mr. Lipham said. "I think people bank at places that will do their best to protect customers' information."
