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February 2023

Is your brand on the right track?

By Mark's Minutes

Seems like everyone is focused on their “brand” these days. Serena Williams is on the cover of the current Adweek with an article about her brand.

My first job out of college was with the Pillsbury company. EVERYBODY knows Pillsbury as the parent of the Pillsbury Doughboy. If I could have received $1 for every time somebody poked me in the stomach and expected me to giggle, I would be wealthy!

The Pillsbury brand is over 150 years old. However, the Doughboy was “born” in 1965. By the way, what a great example that is of refreshing a long-established brand with new life.

I checked with several “official” sources on what the definition of a brand is. As you might guess, there are many takes on this important part of your business. We are going to focus on your company brand.

What is a brand?

Here are some good brand definitions (thank you Google):

From Tech Target: A brand is a product, service or concept that is publicly distinguished from other products, services or concepts so that it can be easily communicated and usually marketed. Branding is the process of creating and disseminating the brand name, its qualities and personality.

From Shopify: Branding (a brand) is the process of creating a distinct identity for a business in the mind of your target audience and consumers. At the most basic level, branding is made up of a company’s logo, visual design, mission, and tone of voice.

From the Financial Brand: The collective perceptions and impressions people have formed about an organization, its products and/or its services, whether through direct (ads/purchase) or indirect (word-of-mouth) interactions.

Build your own brand!

A brand should be specific to the business that it represents. We can look at other businesses in our industry circle and say they have a great “brand.” But how did they get there, and how can you take your brand to the same level?

I like some of each of the above brand definitions above because they really force us to ask hard questions about how we appear to the target consumer and marketplace in general. Yes, a brand is something that is advertised. However, is more importantly something that is experienced.

Creating experiences around your brand helps to build a memorable and a positive association. Especially when service is such a big part of the entire product, as in financial services.

Breaking it down

How does your organization perform against these branding attributes listed above?

Objectively compare yourself on these attributes versus your top 3 competitors:

Publicly distinguishable (distinct)
• Does your logo stand out from competition?
• Are the tangible elements of your brand recognizable (colors, style, tone)?
• Are your locations welcoming, clean and contemporary?
• Are the products and services you offer unique and different from others? 


Personality of your brand
• High tech or high touch?
• Hip and modern or mature and dependable?
• Knowledgeable and helpful or structured and inflexible?
• Leading or lagging? 


The answers to these questions are not necessarily right or wrong. They are only relevant to those you are trying to serve. If you feel like your brand might be out of sync with the marketplace, it might be time for a brand refresh.

We’ll talk more about that in the next issue.

How should you handle NSF policies in marketing your checking account?

By Mark's Minutes

Overdraft/NSF – An unflattering history

As long as I can remember there has always been a “penalty” associated with writing a bad check. Historically, there was a lot of work that was created when a check bounced. It might take an institution a few calls and even hours to resolve the problem.

After the implementation of Check 21 and the move from paper checks to digital imaging, the risk posed by NSF checks and the operational energy for processing went down.

But like everything, the cost institutions charge consumers for NSF (non sufficient funds) has increased over the years. Today the average is $26.58 according to Bankrate’s 2022 checking account and ATM fee study. Average is just that. On the low end some charge about $10 and others as much as $40 per occurrence!

Depending on which statistics you rely on, the annual amount of NSF/Overdraft fees are in excess of $10B annually! And that is what is at stake for banks and credit unions.

Government initiatives to eliminate junk fees

While many institutions have voluntarily started reducing these fees, many more are reacting as a result of the likelihood of government pressure. In October of 2022, the Biden-Harris Administration announced that they were taking action on “junk fees” (of which NSF/Overdraft is one).

These likely are part of the “exploitative or predatory fee” component in this initiative. They are described as “fees that far exceed the marginal cost of service they purport to cover.”

With all the improvements in process and productivity in the checking sphere, few can defend these fees. That’s why all the major banking firms are moving rapidly to re-write these programs.

Watch your competitor’s reaction to these changes

To believe that an institution can eliminate these fees from their products and happily move forward making significantly less margin is unrealistic. As these firms begin to reduce prices on these fees, they will inevitably have to increase prices of other items.

Pay close attention to your competitor’s checking product details. Not just the rate being quoted but all fees associated with the program.

How to leverage in your marketing efforts

According to The Financial Brand, the most important attribute for choosing a checking account was fees. If you are a value provider of financial services, you can likely win the war on the key areas that make up checking account fees by a simple comparison between your product and other major providers in your area.

Key fees to focus on would include:

• Monthly Charges
• Cost of Checks
• Overdraft Charges
• ATM Fees

Surprisingly, deposit rates were slightly lower in importance behind “convenient branches” in this 2020 survey. However, with the rate environment reaching new heights in 2023, deposit rates should quickly become a major focus in your advertising to aid in encouraging switching.

Thanks for joining me today!

Is your auto lending stuck in the garage?

By Mark's Minutes, Uncategorized

We’ve talked about the challenges in this economy in past updates. Seems like we have a genuine ‘trifecta’ of challenges that will impact auto lending.

1.) Rising Interest Rates – The Fed just bumped the rates up another .25% last week. That makes it harder for you to plan interest rate promotions and margin returns, in addition to raising the consumer’s rate.

2.) The Consumer Fear Factor – The talk of recession gets louder. It almost doesn’t matter if there is one or not, but rather what people think. According to Bankrate.com, a full 69% of consumers feel a recession will hit before the end of 2023.

3.) New Car Supply Chain Improvement – With supply increasing, prices of new cars are stabilizing and that is pushing down the value of used cars. While this makes used cars more accessible, the rising rates add another level of difficulty to making the regular payments.

One thing is for certain, selling auto loans will be different in 2023 than 2022. There will still be many cars financed and you can still secure your fair share.

Let’s look at each of these scenarios above and identify approaches your company can use to market effectively in light of these conditions.

Selling Auto Loans in a Rising Interest Rate Environment

We know that most consumers are looking at the monthly payment when they go to buy a car. The question becomes, “How much car can I afford to buy to get the payment I need? When we think of this from the consumer’s point of view, we can offer solutions, instead of just a rate. Your campaigns can focus on “getting someone into the car of their dreams” and helping them “with the most competitive loan terms possible”.

Acting as their consultant you can help them get to the best rate they can within their current circumstances. You also have the unique opportunity to help those credit challenged with a credit building program that might start out at a higher rate (because of risk) but can be refinanced in year two or three based on payment behavior, etc. Longer terms can help offset a higher rate.

Advertising and marketing messaging can promise a free assessment and the best rate possible for their current circumstances. Terms like “See us first; See us before you shop; and Complementary Prequalification” help to set the tone.

Decreasing Consumer Fears in Borrowing

Often consumers will wait on an opportunity because of their fear of what might happen. Of course there is no way to eliminate risk (or a recession), but lending insurance products have been created to reduce the risk. For instance, in the event of a job loss debt protection insurance can delay payments for 6 months. Gap insurance can also help to alleviate any fears that might come from the rapid changes in car values that are predicted.

Marketing Against the New Car Dealership Low Rates

We haven’t seen these yet, but the “zero” interest rates will likely appear if the economy cools. Just as the manufacturers have improved supply, demand may drop which means price decreases and dealmaking will start.

The best defense to this is a good offense. Promote yourself as the place to come for auto loans. Create auto buying seminars for the consumer to learn how to secure the best loan, how to shop for the best car, and how to make a smart decision in this new market reality. Reengage your local dealerships and leverage your indirect lending relationships.

There won’t be any much low-hanging fruit to pick from in these next few years. You’ll need to use all your tools to stay in front of the consumer and build your institution as the place to come for all things auto.

Thanks for joining me today!

Growing New Accounts – Putting a New Face on the IRA

By Mark's Minutes

For years, the standard approach to gaining new clients was to throw out an offer of Free Checking or a High-Rate Savings Account to capture consumer attention. But then everything changed. People invested heavily in the market and traditional savings products were pushed down by low loan rates and a non-traditional Fed policy.

Stock Portfolio Losses Have Hurt Average Investors

After the record market correction in September that wiped out 22% of the average portfolio, people are clearly looking for safety in their investments. And while they aren’t taking everything out of their brokerage accounts, they are balancing what they have and being more critical about where they put their new “investment” money.

What People Want Right Now is a Safe Haven

Throughout the years leading up to 2022 savings rates were routinely below 1%. Most longer-term CDs and other savings vehicles left savers with little earning potential. Now with market corrections and Fed rate increases, savings products are much more appealing. One-year CDs are now showing rates in excess of 4% nationally and may go higher!

Retirement products (IRAs/Roth IRAs/Annuities/401K) are always top of mind during the first 3 – 4 months of every year as taxpayers review their current income and estimated tax liability. Their radar is focused on two things:

1.) How can I lower my current 2022 tax liability or improve my refund? (immediate gratification)

2.) How can I generate safety and a reasonable return going forward? (risk avoidance and investment return)

Traditional savings products are the answer!

New Product Strategies for IRAs will Drive New Accounts and New Money

Most institutions are not leveraging their creativity when they promote IRAs. In fact, they don’t even talk of the benefits they just announce, “We have IRAs and here is our rate.” Imagine how far that gets you with any other consumer product!

Adding more personality and product benefits to your IRA offerings will generate more interest and drive more traffic.

Consider some new ideas for this old standby (as an example): 

The Safe Haven IRA – A high-rate IRA plus a checking account that auto deposits on next year’s IRA. The consumer can adjust how much they want to contribute each month based on their current circumstance…more or less depending how much they have available.

The Bonus IRA – A high-rate IRA with a kicker for bringing in new money from another institution. A free checking account/debit card rounds out the package.


It’s time to dust off your IRA, get your creative juices focused on a powerful concept and get your fair share of this business. It’s a great source of new money and new relationships.

Now is an opportune time to take a fresh look at enhancing your deposit product offerings and grow your account holder financial security! Please let us know how we can help!