A nonbanker buddy of mine was ribbing me just a bit a couple of weeks ago. He told me, "Man, I'd hate to be a guy trying to motivate bankers to 'shake hands and kiss babies' these days. You guys have to be clinically depressed about now, huh?"
(And that was two weeks ago!)
I told him what I've suggested to a few bankers recently. In the midst of industry turmoil, more opportunity exists to get customers' attention than has been there for ages.
OK, I guess I can be accused of really digging for silver linings amongst the clouds. But a time of turmoil almost always presents opportunity as well.
In normal times, the toughest hurdle any banker courting new customers must overcome is the status quo.
As much as we would like to think otherwise, most folks give very little day-to-day thought to their banks. I've often joked to groups that we have a pretty lopsided relationship with customers.
We spend most of our days thinking about them, how to get them to notice us, how to expand our relationships with them, etc. But alas, it is not reciprocated. They're busy living their lives and thinking about other things.
Like the telephone service or electricity provider we choose for our homes, we tend not to give much thought to the financial institutions that provide us with equally necessary day-to-day services. And when we don't pay much attention to a particular service, the status quo reigns.
Well, for better or worse, there is no denying that a larger percentage of consumers are focusing on their banks now than we have seen in ages.
I was personally caught a little off guard by some of the questions and comments I received from nonbanking friends when our current crisis started getting wide press coverage a few weeks back. I found myself explaining the difference between "those kinds of banks" and the ones they had their checking accounts and CDs in.
But as the names of the institutions in the news began matching the names they read atop bank branches in town, folks have become focused on their individual banking relationships more than at any recent time.
This being true, I would suggest that the opportunities have grown to strengthen existing relationships as well as to create new ones.
In times of uncertainty, folks tend to gravitate to people and organizations that are clear about who they are, what they are, and what they do. Confidence is magnetic. And now, more than ever, customers are looking for confident behavior from the people who handle their finances.
When I speak with senior managers these days — though all admit that the situation is fluid — most are pretty confident about their individual companies' standing and prospects. But I would remind them that most customers are not going to pick up their phones to talk to a financial institution's senior managers.
They are in large part going to get a "read" of a bank's situation from the atmosphere they observe in the branches and the personal interactions they have with front-line employees in person and over the phone. They are going to be more aware of which institutions are energetic and positive about their future and which appear to be frozen or defensive.
Are you comfortable with the general knowledge your customer-contact team members have about recent industry and economic events and what they mean to your organization? Do they understand it enough to competently address some pretty off-the-wall questions and comments from customers? (Believe me, they will be getting plenty.)
Have you reinforced the message to your team that their individual interactions with customers are more important than ever in maintaining these customers' confidence in your institution?
Small-business customers are also currently more likely than ever to be seeking banks and bankers who will communicate extensively and work closely with them through turbulent times. Are you reaching out to assure these customers that they have an ally in your organization?
Regardless of whether any institution in your market(s) changes ownership or disappears altogether, some institutions, big and small, are going to gain market share as a result of this period of increased consumer attention, and some will lose it. The status quo is being shaken up.
In times of uncertainty, teams tend to adopt the mood and demeanor of their leaders. Make sure that you and the leaders of your organization are modeling the behavior and communicating in a way that shows your team — and your customers — that their confidence in your institution is well placed.
