On a quarterly basis, Align professionals take a close look at the U.S. consumer credit market size and growth -- by credit product type, type of lender and borrower risk. For the fourth quarter of 2016, we saw some notable trends:
Topics: Business Intelligence
The headlines in The Financial Brand this week read: "Fintech Firms Attacking All Facets of Banking." Almost simultaneously, the Wall Street Journal published a related article: "Regulator Will Start Issuing Bank Charters for Fintech Firms." If this isn't a wake up call for bankers, I don't know what is.
Bankers need to wake up to the opportunities that the market disruptors see -- in time enough to actually influence their bank's destiny. To do this bankers will need to take the wheel instead of (barely) going along for the ride. So, what to do? Instilling some discipline around the discovery of environmental opportunities and risks is a great place to start.
Picture this... I was having dinner the other night, and I turned around and saw a table of young folks that were behaving exactly like the millennials in this picture. I bet you've had a similar experience.
One particularly important outcome of the market dynamics of the last twenty plus years is that consumers are no longer to their banks. Instead, they are shopping for value and transferring large portions of their finances from one provider to another with little concern for fidelity. And, why not? They have a wider array of choices than ever before from an expanding and diverse pool of capable providers (e.g., Fintech companies) who are transforming themselves into convenient, lifestyle-oriented partners. What’s more, the situation is getting worse. As a result of the product, delivery marketing and service shortcomings, bank customer satisfaction ratings have been plummeting.
In the April 2016 edition of the Harvard Business Review (HBR), Jay W. Lorsch and Emily McTague suggest that culture isn't something that you "fix;" rather "cultural change is what you get when you put new processes or structures in place to tackle tough business challenges."*
As we enter our 10th year, we realize this milestone was made possible by the support of clients, friends, and associates like you. We offer our thanks, and wish you much peace and great joy during this holiday season and throughout the New Year.
Last week, my colleague Chuck Bruney, discussed the first of five key components (illustrated in the graphic below) to building a high-performance culture — a market-driven, customer-centric approach.
The posts in this series, How Leading Banks Build High-Performance Cultures, are crafted to help you understand that building a high-performance culture takes more than merely "better communication" or a "touchy-feely" training program. It takes a concerted effort and intense leadership committed to championing the cause and seeing it through. It doesn't happen overnight. And it is often messy — which is why so many community banks are still struggling with the concept. But keep in mind that once it is achieved, a high-performance culture can pay huge dividends for your customers, employees and shareholders. At the end of the day, it’s definitely worth the effort!
Today, I'd like to dig into the market-driven, customer-centric component in more detail as it is such an important driver of long-term, sustainable performance.
As each of us prepares to celebrate the Thanksgiving holiday this week, we at Align would like to take this opportunity to express our gratitude to the readers of this blog.
In my recent post, How Leading Banks Build High-Performance Cultures, I discussed the five key components crucial to building a high-performance culture in your organization.
This series was crafted to help you understand that building a high-performance culture takes more than merely "better communication" or a "touchy-feely" training program. It takes a concerted effort and intense leadership committed to championing the cause and seeing it through. It doesn't happen over night. And it is often messy — which is why so many community banks are still struggling with the concept. But keep in mind that once it is achieved, a high-performance culture can pay huge dividends for your customers, employees and shareholders. At the end of the day, it’s definitely worth the effort!
Today, I’d like to focus specifically on the first of those key components: A market-driven, customer-centric approach.
Today is Veterans Day. All the banks are closed. All of our clients have the day off.
It is in the spirit of the holiday that we are publishing an entirely different blog today. Rather than talk about some aspect of banking, we decided to use this space to reflect on the significance of today.