Having diverse experiences can often lead to better problem-solving and innovation compared to hyper-specialization. In the book Range, there is a cognitive psychological problem that shows how analogies from different fields can help solve complex issues. Applying this to financial services, David suggests that organizations should leverage the diverse backgrounds of their employees to enhance creativity and problem-solving.

Businesses should conduct skills assessments to identify all experiences within their teams and form cross-functional groups to tackle challenges, help customers, and ignite innovation.

Notes:
🤓 Why people with a wide range of experience can outperform those on specialization. 01:02
🤔 Problem by Carl Drucker: cancer patient issue. 01:45
😇 Bankers are coming from different fields: gather the database of all experiences within your institution. 05:15
🌟 Skills assessment is very useful for creating cross-functional problem-solving teams. 08:02

Links:

Book Range: https://www.amazon.com/0735214484

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

Your business’ virtual and physical services must be aligned. The frustration caused by the mismatch in data synchronization between these two is huge and should not happen in this day and time. Businesses must ensure their virtual and physical operations are aligned to provide reliable and accurate information to customers. This can be fixed by having an automated routine that regularly checks, multiple access points that you're offering to your customers and validates that the information is in sync.

Notes:
✈️ David’s experience at the airport: how often does a service-oriented business have a sync mismatch between its virtual and physical operation? 00:58
🤯 When the mobile app and online dashboard show different banking balances. 03:15
⚠️ Checking if your data are in sync. 05:35

Links:

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

We often make decisions using our emotions, but financial decisions are more likely to be better and more useful if we make them by using our heads. Behavioral science and storytelling can help with crafting the right messages to customers that will regain their emotions and take good care of them in the financial world. How science can help in attracting and acquiring new customers?

Notes:
😍 Are emotions important when making a decision? 01:01
🤓 How young people make decisions: emotions can be bad for banking decisions. 02:59
🤯 Younger customers are using alternative payment services: emojis as reasons to choose bank service. 03:26
🧠 Stories activate the brain: using storytelling to help your customers to make good financial decisions. 06:05
🎯 Marketing crafted based on behavioral science: affirmation and support that will appeal to clients. 08:20

Links:

Article: https://thefinancialbrand.com/news/bank-marketing/how-behavioral-science-gives-bank-marketers-a-leg-up-acquiring-customers-153126/

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

Why banks can’t get out of the habit of not using the out-of-branch tools available when they are doing business in the branch? Why is that so hard? Why banks don't value the virtual branch, like the physical branch, and do not enable younger generations to become users of the financial institutions the way they like the best - via digital? These are only some of the questions that financial institutions must work on to get more customers who hold phones in their hands from the age of 2. It is time to innovate!

Notes:
💸 Customer Journey is providing the best insight into your service from a client's point of view. 00:51
📱 Opening account in 15 minutes instead of 25: how about 5 minutes?
🤯 Employees in banks don't use the solutions and services that they make their customers use.03:45
⚠️ Younger generations have expectations about what an online onboarding experience should be: abandonment rates are too high. 05:29
⏸️ Pause in the process is the reason for abandonment: allow electronic transfer to fund accounts. 6:55
⚡ Stop comparing your institution with others but compare yourself with Neobanks.08:12
🤩 How to know if your online experience meets expectations. 08:51

The article used: https://thefinancialbrand.com/news/bank-onboarding/why-banks-need-to-fix-poor-digital-onboarding-experience-147074/

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

In episode 55 we talked about the Neobank phenomenon. Are they taking away younger customers away from the traditional financial institutions? What if traditional financial institutions could tailor the services for small to medium businesses and startups and assist individuals in starting businesses, providing a checklist, classes, mentorship, events, and training. The key is to market your services as effectively as neobanks without the need to create one, fostering a differentiated and valuable proposition for potential business customers.

⚠️ Neobank creates a compelling argument to some targeted groups to move away from their traditional bank and to come "bank" with them. 00:52
📈 Brex launched in 2017 with a specific purpose of focusing on serving startup companies, and in 2022 they were valued at $12.3 billion: now, they're less suited to meet the needs of smaller customers. 02:04
💡 Target companies Brex left behind to open accounts at your institution and adjust your offer for startups to make them long-term clients. 04:47
✅ Community banks should consider building services that assist an individual in starting a business: David shared several ideas on how to do that. 06:40
❗ Your non-interest service revenue is heavily weighted toward business customers, so you have a vested interest in getting more business customers via calls and programs. 07:47
📢 Potential clients should know that your institution provides a service targeted to their unique needs and mitigates any interest in them looking for shiny, bright online banking options. 08:36
👉 You should market your services as if you were a Neobank. 09:07

Links:

Episode 53: Trouble Ahead for Neobanks?

Article: Brex, which started out serving startups, now says it is‘less suited to meet the needs of smaller customers’

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

We all love routine, but guess what? It’s a disaster for our brains!

In this episode, David explores how excessive routine can stifle creativity and problem-solving skills, particularly in organizations such as financial institutions. He discusses how an over-reliance on strict procedures might hinder employees’ adaptability in unexpected situations and limit their ability to identify areas for innovation.

Drawing from personal experiences and research findings, David highlights the “numbing effect” of routine on the brain’s executive functions, emphasizing its potential negative impact on employee creativity and crisis management. He suggests strategies like escape room exercises and continuous thought-provoking activities to counteract this effect and keep employees fit.

Tune in for invaluable insights on navigating the fine line between routine and innovation while uncovering ways to maximize creative potential!

Notes:
📉 David coined 'the numbing effect of routine' term: financial services don’t fare well when knocked off that routine. 00:58
🧠 Too much routine suffocates your brain: there’s evidence that the less you engage the executive functions, the weaker they become. 02:46
👉 A 2017 study reveals a link between heightened anxiety and an inverse relationship with goal-oriented behavior. 03:56
✅ The anomaly might be something that should be examined as the source of a creative idea that might streamline the process, potentially leading to innovation. 04:48
❗ If and when a true crisis occurs, the most important element in successfully remediating the crisis is how immediately the employees take thoughtful action. 06:02
⏹️ A process-oriented business inherently reduces the ability to recognize potential innovations or preparedness for addressing disasters. 07:04
💡 Escape rooms are a great way for employees to work on problem-solving: consider hosting logic quizzes, innovation idea vetting programs or engaging innovation workshops. 07:33
❓ How do you keep your people sharp and ready to go? 09:39

Links:

📌 David's book GROUNDED: https://davidpeterson.com/bookstore

📧 Email David: david@davidpeterson.com
🌞 Connect with David: www.linkedin.com/in/dlpspeaks

🤩 Learn more about David: www.davidpeterson.com

👨🏻‍💼 Consult with David: www.i7strategies.com

⛵ Sail with David: www.i7sailing.com

Resources:
How Too Much Routine Suffocates Your Brain: https://elemental.medium.com/how-too-much-routine-suffocates-your-brain-fcee3cd8444

Escape Room: www.amazon.com/Escape-Room-Box-Werewolf-Experiment/dp/B0752PGG2K/ref=sr_1_5?

In the ever-evolving landscape of banking, a clash of titans is underway, pitting traditional community banks against the innovative disruptors known as Neobanks.

Community banks must revamp digital experiences, embrace storytelling in marketing, and strategically connect with younger demographics.

To ensure long-term success, strategic planning involving senior leadership and dedicated teams is paramount, providing these banks a transformative path to compete effectively in today’s financial sphere.

Notes:
🚫 Neobank is NOT A BANK. 00:57
📱 Neobanks have excelled compared to the typical community bank: prioritizing user experience is what matters. 02:19
📉 About 250 Neobanks are operating worldwide: the surrounding fervor, akin to buy now and pay later schemes, might lead to a spectacular crash. 03:55
🎯 David thinks that Neobanks are created to gain online users and then convert that market share into a deal where they sell out to traditional banks: that way, banks get younger millennials and Gen Z clients. 05:54
👉 In today’s digital banking landscape, it’s essential to offer features and experiences that resonate with younger customers, or risk falling behind. 07:17
✅ Community banks are inherently bad storytellers: it’s a critical skill for gaining young customers. 07:57
❓ Could upcoming strategic planning sessions be utilized to chart a new course, positioning your bank to dominate young millennials and Gen Z markets in 2024? 09:17

Links:

Which Neobanks Will Survive In the Future? https://thefinancialbrand.com/news/fintech-banking/which-neobanks-will-survive-in-the-future-150827

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com

Marketing is an essential part of every organization. Statistics could be more positive when it comes to bank marketing. Bank marketers have a hard job and need accurate targeted data to create very specific campaigns and confidence in their reliability. It's an ongoing problem to resolve. Help focus marketing campaigns that will generate measurable results and outcomes without crossing the creepy line.

⭐ What is Baader Meinhof phenomenon: bank marketers indicated they have access to a lot of data useful for marketing. 01:39
🔵 Profitability is important data, and it's not ranked high enough: if a nonprofitable customer leaves your bank for a competitor, your overall profit goes up. 02:50
👉 Bank marketers are getting more comfortable using the data they have access to, but they are still not very confident about the quality or accuracy of the data they use to make marketing decisions. 03:57
✉️ Get very granular about the specific subset of customers or prospects: snail mail marketing is incredibly effective if targeted to a particular subgroup to which its appeal is uniquely tailored. 04:53
🔴 Give our marketers accurate, targeted data that will enable them to focus marketing campaigns that generate measurable results. 07:56

Links:

Marketing’s role in data analytics: https://bankingjournal.aba.com/2022/08/marketings-role-in-data-analytics/?utm_source=eloqua&utm_medium=email&utm_campaign=newsbytes&utm_content=NEWSBYTES-20220824

Graphic 1: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-1.1.png

Graphic 2: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-2.2.png

Email David: david@davidpeterson.com

Connect with David: www.linkedin.com/in/dlpspeaks

Learn more about David: www.davidpeterson.com

Consult with David: www.i7strategies.com

Sail with David: www.i7sailing.com