I recently caught up with friends, colleagues, and customers at a large banking conference.
A couple of observations struck me while spending three days chatting with bankers in the exhibit hall. Actually, the fact that the exhibit hall stayed busier than I've seen in years intrigued me.
At many of these past shows, folks basically listened to speakers during the day, popped into the exhibit hall only when the bars opened, and then rushed away to vendor-sponsored dinners. This time around, the various booths seemed to have noticeably larger crowds and more engaged visitors. Bankers were "working" this conference more than in the past.
More than any other time I can remember, bankers wanted to talk about what other banks were thinking and doing and how they were reacting to industry and economic challenges.
I shared thoughts with a few friends and customers on what I've observed at several banks they inquired about. I also quickly gave the disclaimer, "Your results may vary."
If you were to exactly copy the game plan and strategies of the competition you admire (or fear) the most, you may have similar results. But it's just as likely that you won't.
Moves that make perfect sense for an organization that (on the surface) appears similar to yours may be unwise for your institution. Conversely, another organization failing at a certain strategy doesn't mean that it wouldn’t be a successful one for you.
This would seem to be the most common of common sense, but stressful times often lead to "group-think." It's hard enough to stay up-to-speed with what's going on in our own companies. Some folks seem to spend more time worrying about the competition than about their own shops.
I've made the following analogy to manager groups before. If you owned a small restaurant or two, you'd likely be aware of whatever McDonald's is doing this month. But you'd realize that while you're in the same business, you're not really in the same business.
McDonald's strengths, weaknesses and opportunities aren't yours. The strategies that it will take to "move the needle" at McDonald's this month may not be all that relevant to you.
We may be grouped into one industry, but there is almost as much difference between banks as there is between the small restaurateurs, regional chains, and McDonald's.
As bankers, we will face similar industry challenges, but we must deal with them in our own and (at least somewhat) unique manner.
Without doubt, banks are going to get leaner and more efficient. But with all due respect, that happens in all industries, and was always going to happen in ours.
Many of the changes banks are making now to deal with it were always going to be in the works. And we don't all begin from the same starting line.
Some banks will be more aggressive than others in thinning branches and headcount. Some will get it mostly right, and some will overdo it. And some operators will assuredly wait too long to change much of anything at all.
We face our own unique situations and challenges, but I'd suggest there is at least one universal truth. Regardless of the breadth or speed of the changes individual banks make, the success or failure of these changes will greatly hinge on our teams' understanding of and commitment to them.
Some moves may be made because the competition is making them. Others might be made because the competition isn't.
Whether or not the next year or so sees noticeable strategy, structure, or fee changes at your institution — or more of the status-quo — make sure your teams understand why that is.
Team members who think that every move by the competition must be met and reacted to immediately benefit by being reminded regularly of why your bank will be, or won't be, doing likewise.
Contrary to what outsiders seem to believe, banks are not clones. There isn't a one-size-fits-all strategy to ensure prosperity going forward.
Regardless of what strategies and practices your institution chooses to pursue, make sure your team knows not just what the strategies are but why they're the ones that make the most sense for you.
Dave Martin is an executive vice president and chief training consultant at NCBS, a SunTrust Banks Inc. subsidiary that offers consulting, training, design and construction services for retail banking programs. He can be reached at
