The BrandBank Logo
Follow BrandBankUSA on Twitter
The BrandBank Why Marketing Matters
Why Marketing Matters
Historically, financial services companies have done a marginal job of developing brand identities and marketing strategies that truly differentiate them from their competitors. Take community banking, for example. Twenty five years ago one could argue they didn’t need to market. With far less competition and strict barriers to entry, community banks found little need to spend money on a marketing plan to win business in their own communities. Why would they? Often they were the only game in town.

Today, however, as towns expand and competition from credit unions and community and money-center banks grows, smaller banks need to distinguish themselves from a very aggressive field. With a higher cost of funds and expensive overhead, community banks can’t win business simply on fees and rates like bigger banks. Throw in a soft bond market, a troubled loan portfolio and new FDIC assessments and you understand why bank owners wonder if they’ll even survive the next 12 months.

Troubled banks notwithstanding, hundreds and thousands of community banks will survive this recession. Some will even flourish and the ones that take advantage of this opportunity first will undoubtedly prevail in the end. When it comes to winning and maintaining customers, smaller banks might not be able to outspend their bigger competitors but they have plenty of intangibles that make them a compelling alternative. Unfortunately, most small banks don’t have the in-house resources or expertise to develop their own marketing strategies to exploit their competitive advantages.

That’s where we come in.