Finance
Speaking the language of financial literacy
Today’s institutions have to address a financially conscious and financially literate public. Consumers are more focused and informed than ever on their spending habits, investment opportunities, debt management and budgeting. We understand this trend, and we apply our knowledge to help credit unions, banks and financial service providers communicate the value of their products and services to financially savvy audiences.
Our Thoughts
Can Elmo help your kid be an entrepreneur? It certainly won't hurt. Elmo is a three-and-a-half-year-old character/muppet on children's television program Sesame Street and has appealed to children and adults (especially this adult) for more than 15 years. Through Elmo, children have learned more than colors, numbers and letters, they are now learning about finances. PNC has partnered with the Sesame Workshop to present the basics to preschool-age children on how to manage their allowances and "build healthy habits that will last a lifetime." The pieces are all available online or through PNC branches.
The materials are tailored to your children, but the message could apply to anyone: make good choices, understand value, use the skills of saving/spending/sharing as a way to divide your allowance/income and turn money questions into teachable moments.
Have older kids who need similar lessons? Think Money Camp for next summer. Yawner? Hardly. Camps across the country are targeting teens to spark entrepreneurial spirit understanding personal finances and a business boot camp where mock company plans are developed and new career choices begin to unfold as a result.
A study from 2009 from two researchers at the University of Wisconsin, Madison revealed 80 percent of the teachers surveyed did not feel qualified to teach a financial literacy course even through 80 percent of the states in this country had some sort of a financial literacy requirement.
This screams opportunity for financial institutions to make their financial literacy outreach more than an LMI requirement, but to create meaningful financial literacy programs to multiple audiences to strengthen their customer base and enriching their community.
Aug 29, 2011by Michele BrownIf you can judge a recovery by the number of marketing offers from banks, America is BACK! The Wall Street Journal calls it "The Great Customer Courtship," and it's true: banks have gone to a full-court press to build confidence and deposits.
The incentives are thick: Citibank, Chase, HSBC, PNC, and M-O-U-S-E are all sweetening the pot to get you to grow your savings with them.
But there are those neutral parties like BankRate.com and Mint.com who are waiting in the wings to help sort out the cream from the crud based on your saving and spending habits.
One thing the article misses? Credit Unions. Smelling blood in the water, credit unions are looking for ways to change the way consumers think about their financial institutions by offering (gasp!) free checking and more.
It has been a rocky few years. Confidence is low, expectations are even lower, and this is a chance for the customer to vote with their pocketbooks and maybe even win along the way.
Feb 21, 2011by Michele BrownYou mess with the bull, you get the horns. Walmart has tried to get in the banking game for years, though not without uproars from banks. When you are the world's largest retailer, the word NO is not in your vocabulary. Who can blame them?
Walmart is known as a low-cost leader who uses its gurth to muscle suppliers to cave to their desires, be it profit, innovation or shaking up a frosty industry like banking. The brand halo of Walmart is a warm fuzzy friend to those who have been "fee'd" outta their banks or, who never were banked (and that is one in four people according to the FDIC.).
Enter Green Dot a pre-paid debit card and an alternative to checking and the marriage of convenience with Walmart. Green Dot paid a dowry of triple the commission to the big W and they have a five-year agreement.
Using Walmart's new cheaper check cashing service? Safely load it to your pre-paid debit card. What's that sucking sound? Customers leaving places like The Money Box AND B of A to shop and bank in one place. No mega fees. Little drama.
Green Dot has to worry about churn. But as people join the "forget the banks, make my life easier" bandwagon and Walmart's marketing machine to spread the word... more and more will join the party.
Hmmm... make my life easier? Might watch VERY closely.
Nov 9, 2010by Michele BrownIs it me or are more financial institutions featuring women in their ads? A Harvard Business Review article called "The Female Economy" released a year ago last month revealed women felt financial institutions, among other industries, did a horrible job in catering to female clientele. Since women make 85% of the buying decisions in the family, banks and credit unions are leaving money on the table by limiting the conversation to men.
Since then, Citigroup has fired back up their Women & Co. program "where wisdom, wealth and women meet" with two full page ads in Oprah's O Magazine and a reinvigorated online presence. Chase features women in its small business outreach, and many more community banks are working to include women when they mention planning for retirement.
This is a start, but while advertising might deliver the prospect to the branch, there needs to be an evaluation of policies and processes to ensure there is no over-promising and under-delivering. It happens so often now, there is even a name for this bait and switch. It is called "Painting It Pink."
Oct 5, 2010by Michele BrownMobile strategies are critical but they don’t have to be built from the ground up.
Mobile integration of your content or service is important. In some cases is may make sense to simply leverage the most popular services into your own or vice versa. Google Finance works well with Android and now Apple and given Google’s popularity, this may be a quick way to offer, or introduce as the case may be, value to your customers. Source
Sep 16, 2010by Michele BrownWhether it's legal concerns, public awkwardness or CEO hesitancy, most institutions are still scared of engaging customers socially, online. These same companies that manage our finances are so frightened of “opening themselves up” that they’re completely missing an opportunity to help their brand develop a persona. This is certainly a case of because you can, you should.
However, it appears as though most financial institutions don’t realize you can strategize to scale. Meaning, develop a social policy, plan and persona that’s right for your brand and keeps the lawyers happy. Even a small, yet purposeful effort can satisfy the very customers you service and whose money you manage.
E*TRADE is a good example of a company that has openly adopted social interactions. On their Facebook page, they add value to their postings that enables Facebook to be a resource extension to their customers.
Aug 12, 2010by Michele Brown
