Takeaways from the 2012 ICBA Convention - Nashville

Attendee Stats:

Quotables:

Disconcerting Federal Facts: "66 percent of our federal budget is paid to INDIVIDUALS. 1 in 7 jobs are GOVERNMENT SECTOR. This makes as much a sense as leaping a chasm in 2 bounds." - George Will, America’s Foremost Political Columnist

On the need for an even greater focus on Service Culture:
"Too many bank employees think that 'FEE' is a four-letter word." - Mark Stetson, Principal - Stetson Management Consulting Inc.

On how we often mistakenly measure "success" by Account Growth:
"How many bank boards are asking the important question, 'Did we get any new CUSTOMERS this month?' An increase in accounts is NOT an increase in customers." - Jeff Gerrish, Chairman of the Board - Gerrish, McCreary Smith PC

3 Magic Words that can tie a customer to a brand:
"Look At Me!" - Ken Schmidt, Visionary and Brand Master - Harley-Davidson Motor Co.

On the difference between "Strategic Thinking" and "Wishing" for positive change:
"There is a fine line between Vision and Hallucination." - Sal Marranca, Chairman - ICBA 2011-12

Notables:

Payment Technology Changes Are Coming! - Fast and furious changes are looming in card technology.

	Mandated shift to "chip" technology coming in 2015.
	Magnetic stripes on current cards already have a growing acceptance problem in Europe and elsewhere (U.S. is behind many parts of the world in chip technology).
	Within the next 5 years, the growth rate of customers using Mobile devices as their preferred method of payment will far outpace plastic cards

Re-Think the Credit Card Business - As Community Banks have been continually squeezed on profits from every conceivable direction, many are turning to the Credit Card business to regain lost ground.

	Credit Cards should be targeted to the bank's "most credit worthy" Personal Banking and Small Business customers.
	The highest card interchange fee percentages will be earned on your top customers' credit card transactions.
	Other than Home Equity Loans, your bank's Credit Card portfolio may be the only reasonable avenue to compete for profitable consumer loans.

Strategies to Increase Fee Income - There is money to be made by finding incremental fee-income opportunities and/or shifting a bank's measurement strategies:

	Develop effective measurements such as "Fee Income as % of Revenue" or "Fee Income as $ amount per FTE."
	Assign every customer to either a Personal or Business Banker: -- 300-400 customers per banker. -- Develop compensation philosophy around these goals.
	Strive for 20% annual growth in fee-generated and 20% pre-tax net operating profit margin ... with potential contributions to profit by Trust & Investment, Mortgage, Insurance, etc.
	Charge and collect loan extension fees.
	Increase documentation fees.
	Overcome the mindset among many bank employees that "FEE" is a four-letter word.

Presented by Mark Stetson, Stetson Management Consulting Inc.

Mortgage Services that Reach Out to Today's Customers - Connecting with today's home buyers and mortgage shoppers requires an Online Mortgage presence that allows customers to expedite the loan process on THEIR PERSONAL schedule (not the bank's).

	Yes, you can compete (and win!) vs. other Community Banks, Big Banks, Credit Unions, Mortgage Companies and mega-entities like Quicken Loans.
	Two-thirds of your potential Mortgage Customers "look online FIRST" (are they looking at YOUR bank?).
	Cloud-based Solutions are quickly evolving ... as are Mobile and Tablet Apps.
	Automated Credit Scoring expedites the Loan Application process (everybody wins ... Customer, Banker, Realtor and/or Builder).
	Online Mortgage automation enhances profitability, increases market share and improves compliance quality.

Outmaneuver Competitors for Home Equity and Personal Loans - Cloud-based Solutions can underscore a Community Bank's ability to be more nimble and responsive than Big Banks. The same goes for bankers' use of Mobile devices such as Smartphones and Tablets.

Outsourced Lending Call Center Provides 24/7 Customer Help - Why not give your customers the opportunity to talk with a fully qualified banker who functions and sounds like YOUR bankers ... and can lead your customers through the loan decision and application process. The pricing model is based on "per completed loan application" (provided the applicants meet specific bank requirements).

Loyalty and Rewards Programs - The stars are aligning with technologies that give banks more flexibility and effectiveness in attracting and keeping customers ... and earning greater non-interest income!

	Mix and match Loyalty and Rewards Incentives for Key Customer Segments.
	Merchant-Funded Rewards (similar to Groupon and LivingSocial). -- Immediate gratification for the Bank Card user. -- Integration of Smartphones and Tablets for instant rewards.
	Traditional Rewards with greater appeal and more customer flexibility (choice of Points or Cash).
	Local Merchant/Business Participation.

Your Strategic Planning is a Waste of Time If ...

	No buy-in from the Directors and Officers.
	Too focused on process, too much touchy-feely (as opposed to utilizing current and accurate customer results and/or market data)
	Spend too much time on SWOT.
	Mission, vision and value statements dominate the discussion.
	Turns into budgeting session.
	No accountability and follow-up.

Presented by Jeffrey C. Gerrish, Gerrish McCreary Smith (Memphis)

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