The recent events of Silicon Valley Bank and then Signature Bank failures have brought the topic of financial institution security and safety to the forefront of consumer’s minds.
Although the issues are very different from the 2008 mortgage meltdown, the consumer emotions are the same – fear, concern, wonder and worry.
Educate the Consumer to Reduce Concern
Much of the concerns that many consumers have come from a misunderstanding of how the financial insurance programs work, as well as what determines the safety of a financial institution.
Truthfully, not much is discussed about this topic in traditional marketing any more. The further in the rear view mirror we are from major events, the less it seems to be promoted.
The consumer is likely assuming that all is well.
Practical Marketing Opportunities During this Period
Here are some practical ideas that you can put to work quickly. These approaches will serve to both calm your account holders while also providing opportunities for business growth if done correctly.
Outbound Letter to Existing Accounts
Make sure to publish a letter from your CEO to all your existing accounts reinforcing your safety and secure financial position. Remind them of their insurance coverages. Keep copies of your company annual report at the ready.
Prepare to Welcome New Business
During this current season, consumers will be reassessing their current account circumstances because of either concerns with their current provider or an under-insured situation that have to rectify. That means they are going to be looking for a new place to put their funds. Make sure that you are ready with:
• Competitive Deposit Rates
• Increased Advertising Spend
• Expanded Merchandising and External Signage
• “New Accounts“ Messaging and Info Packets
Sharpen Training for Staff
Make sure that your front line team is up to date on their knowledge of insurance and account vesting. You want to instill confidence in all front line communicators.
Strategic Retention of High Deposit Accounts
Do you have some clients that exceed the deposit insurance thresholds? Now is a good time to identify those clients and invite them in to review their current account selections and account vesting. You want to ensure that they are covered adequately lest you run the risk of losing them to another institution. With different account vesting, account holders can actually cover their accounts well in excess of the $250,000 limits.
Remember, there is always opportunity amidst chaos. This topic will be front and center for weeks and possibly months. Be prepared.
Thanks for joining me today!