The Stackpile » Banking

Design competition for Switzerland’s currency!

Marissa — Thu, 14 Jan 2010 15:05:39 +0000

The theme was called “Switzerland open to the world.”

In the beginning of 2005, as a part of the development for a new design for the look of their currency, a competition was launched.

Twelve artists were invited to take part in the challenge for designing all six denominations on the theme mentioned above.

The first place winner was Krebs Manuel from Zurich and his designs pictured here.

You may view the other designs here.

Community Banks are Coming Up

Simon — Wed, 18 Mar 2009 21:36:35 +0000

There’s a great article by Laura Schreier in this week’s Banker & Tradesman suggesting there’s never been a better opportunity for community banks to go after the corporate behemoths like Citi and BofA. The fact is, there’s a tremendous amount of public resentment against big banks right now–and according to our own research (see the newest Stackpole Report for details) people have never been more ready to switch to a community bank.

For those without a subscription, the full article is posted below:

Are Community Bankers Being Too Humble?
Debating Marketing Challenges For Banks During Megabanks’ Financial Woes

By Laura Schreier

Community bankers and credit unions are currently congratulating themselves about stealing away depositors from wounded megabanks like Citigroup. But with so many depositors ripe for the plucking, some consultants wonder why aren’t we seeing more marketing campaigns aimed to draw those dissatisfied customers in?

Peter Harvey, head of Hingham-based marketing association Intellidyn, said community banks – largely safe and financially healthy, compared to their giant rivals – are mostly sitting on their hands when they should be shouting from the rooftops.

“Bankers are not very good marketers,” he said. “When an opportunity comes like this, where there is this need in the marketplace for people to secure their assets – you’d think you’d see a lot more marketing activity out there.”

A few institutions have jumped into marketing themselves as the stable alternative to beleaguered giant banks. HarborOne Credit Union, for example, recently announced an extension of an advertising campaign that touts the company as community-focused and stable.

The HarborOne campaign originally launched in mid-January, and included newspaper print ads, TV and online ads, including radio spots using a tongue-in-cheek jingle called “My Money Lies Over the Ocean,” that parodies the folk song “My Bonnie Lies Over the Ocean.”

It’s perhaps too early to give definitive evidence that the HarborOne campaign has drawn in more depositors, but spokesman Jim Rice said new checking account openings were up 28 percent during January and February, as compared to the last two months of 2008.

Not So Reticent To Jump Ship?

Rarely, if ever, are depositors willing to switch banks, Harvey said; usually, they’re only willing to do it when they move long distances.

But now, with so many enormous banking institutions in trouble, depositors are ready to make the switch, and Harvey said community banks should be there to nudge them along.

“It is an opportunity that has not been here in 40-plus years, and may not be here for another 40-plus years,” he said.

Susan Nelson, head of marketing for HarborOne and president of the New England Financial Marketers Association, said her organization plans to make the issue part of the agenda for its next convention.

While HarborOne’s $100,000 campaign is going well, she said: “I’m not sure what’s going on with other banks, but it is an opportunity that they could be missing out on.”

North Shore Bank is a few months into its own ad campaign, and marketing senior vice president Christopher Pesce said customer response has been overwhelmingly positive – existing customers like being reassured, and new customers have been coming in the door. North Shore and HarborOne are the only institutions that he knows of with such marketing campaigns, and he doesn’t understand why more haven’t leapt at the opportunity in front of them.

Carol Kaplan of the American Bankers’ Association disagreed with Harvey’s assertion, saying banks around the country have been working to get the word out about their stability.

The ABA has even distributed generic marketing materials that individual banks can plug their name into and distribute; basically, they send the message that “insert bank name here” has been your neighbor for many years and we’ll be here well into the future, she said.

National analyst Mary Beth Sullivan, managing partner with Washington, D.C.-based consultant Capital Performance Group, said the advertisements are out there, with many community banks playing up their safety in a time of turmoil. Much of their activity has been in reassuring current customers, but some are reaching out to non-depositors in the hopes of drawing them in, too.

And of course, now is not a time when bankers – or anybody, really – wants to be spending money.

“Let’s face it, the industry is in cost-containment code, but the messages, I think, are absolutely out there,” she said.

To DM or not to DM

Simon — Tue, 27 Jan 2009 20:49:33 +0000

At last week’s NEFMA conference, amid the usual hubbub about the newest, hottest marketing gadgets (Twitter, Facebook, et al), another, older marketing tool was getting a surprising amount of airtime: direct marketing.

Now, I have nothing against direct marketing. It is, in fact, a great tool under certain circumstances. If you have a special deal or event you want to promote, direct mail is often the way to go.

The problem is that many organizations use direct marketing in lieu of a comprehensive marketing campaign. Promotions are great, but what really drives customer acquisitions is brand recognition. People need to know who you are, and what you stand for—particularly in the banking category, where there is so little perceived differentiation. (In fact, according to the most recent Stackpole Report, the number one reason people don’t switch banks, even when they’re unhappy, is because there is “no difference” between banks and “no better option out there.”)

Differentiation can’t be earned through a single direct mail drop, or even ten. In order to create differentiation, you need brand personality. And the best way to convey brand personality is through broad-reach media like TV, radio, and print—ideally in a coordinated campaign.

You may hear a radio ad on your way to work, skim over a print ad while reading the paper, click past a banner ad on your favorite website, and finally end with a TV spot later that night. If all of these gears are working together with a unique message, the cumulative effect is a passive familiarity that stays with you for a long time. And when you’re finally ready to switch to a new bank, guess which one will be at the top of your list?

Hint: it’s not the one that sent you a coupon for free pizza last month.

The Mattress Impulse

Simon — Mon, 15 Dec 2008 20:54:44 +0000

I was recently made aware of some interesting guerrilla artwork that has been showing up in London. Apparently an artist by the name of K-Guy has been going around placing mattresses in front of financial institutions like Barclays. The mattresses bear messages like “Bank of Jimmy and Trish” and “Sleep Easy Family Banking.”

The joke, of course, centers on the huge shift that has recently occurred in the way people think about large banks. The common wisdom, until about six months ago, was that your money was safe with a large institution like Lehman Brothers or Bear Stearns. They were seen as “too big to fail.” But all that has changed now. The big banks have lost a lot of credibility–and it’s really not unreasonable to wonder whether your money is safer under the mattress.

This poses an interesting question for smaller and regional banks. Given the downfall of big banks, will people now view their local bank as a safer bet? Will small banks be seen as less cavalier with their clients’ money, and therefore more insulated from failure? Or are they suseptible to the same troubles afflicting the big-league players–and possibly less likely to get a bailout should the need arise?

All I know is, for now anyway, my money’s staying under my Bob-O-Pedic.

The NEW Bank of America ATMs

Marissa — Mon, 08 Dec 2008 19:53:26 +0000

From a technological standpoint, it’s pretty cool…

No more stuffing envelopes, filling out slips and entering totals via a keypad. The technology is called “check imaging” or “envelope-free deposits.”

For printed checks, the system automatically determines how much the check is for, and then presents you with an on-screen image and asks for confirmation of the amount. For hand written checks, it asks you to enter the amount and then shows a picture of the scanned check and asks for confirmation that the amount you entered is correct. The ATMs should cut reliance on tellers and deter fraud from “empty envelope” deposit scams.

The best part?

The ATM will print a receipt with small images of the scanned checks. And before you start worrying about security, the images have the routing and account numbers blacked out across the bottom.

However, there is a downside … it’s S-L-O-W. Each check has to be inserted individually and the deposit amount verified. Also, longer lines have started to form as ATM users struggle with the new process.

According to an Article by Dan Beighley for the San Diego Business Journal:

The new ATMs could save Bank of America and other banks about $1 per transaction by cutting manual processing of deposited checks and the need for envelopes, according to consultant Tower-Group Inc. of Needham, Mass.
Deposits are up by 50 percent at machines with the scanners, according to Bank of America.
“When customers see an image of their checks on their receipts, they’re more confident that the deposit has been accepted and they have assurance in hand,” said Kirk Lindsey, Bank of America’s ATM executive.

Rivals Wachovia Corp. and Wells Fargo & Co. also have introduced check scanning at some of their ATMs.