November/December 2014
Wisconsin Community Banker
19
of the eye, unique to each person, to
verify that the user is who they say
they are.
Data Analytics
Data analytics are now being
used as predictive tools. Community
bankers can employ data mining to
improve their bottom line perfor-
mance. No need to pay for expensive,
demographic research when deter-
mining where to put a new branch.
Your ACH data can tell you that. Just
figure out where most of your custom-
ers live and where they shop and put a
branch there.
What do your customers buy, how
often, from whom, and for how much?
Mobile/digital wallets affect where
people shop, what they buy, and how
much they pay. They help determine
whether or not it’s the right product, at
the best price, and the most appropri-
ate type of payment. This is the “Holy
Grail” of big data and you have it now.
Activity-based marketing is defined
by Ron Shevlin as “marketing within
the context of an activity being per-
formed by a customer or prospect.”
An example of activity-based mar-
keting from a financial institution is
perpetual loan approval to inform a
customer’s decision whether or not to
buy.
Studies find that some Millennials,
or what Wetherington calls Genera-
tion Y 1.0, have a lower standard of
living. They have higher poverty,
higher student loan debt, and higher
unemployment than the two previ-
ous generations. They’re disengaged
financially.
Many Millennials also have impulse
control issues — it’s not real money if I
can use a card to pay for it. More than
half report spending more money
when using mobile banking.
But there is also a group of wealth-
ier Millennials that Wetherington
calls Generation Y 2.0 who are Money
Hawks. These 25- to 34-year-olds
manage a complex portfolio of finan-
cial products and have their biggest
earning potential over the next 10 to
15 years. As they age, they will gener-
ate an increasing number of bills and
will want control over their finances
to make it easier to stay within their
budgets. “You are perfectly positioned
to be what Generation Y needs.”
Going forward, banks, Wether-
ington said, must master their data
and provide personalized ads for the
bank’s products and services across
all channels. Banks also can plan to
curate “partners” who may use the
bank’s ad engines to serve customers
with relevant ads that can be one-
clicked to acquire a product or service.
In short, banks can plan to earn ad fee
income while wearing a white hat.
Financial Institution
Products & Services
Offered by Your Association
◆
Financial Institution Bond
◆
Directors and Officers Liability
◆
Property, Casualty, and Workers’ Compensation
◆
Forced Placed Property Mortgage Protection
◆
$9.00 Life of loan flood determinations
◆
Residential and Commercial Evaluation Program
Community Bankers Financial Services offers a wide variety of products and services
for the benefit of you, our members. For additional information on any of our
financial institution programs call Denise Davis at CBFS at 608.345.6998.
Kevin Christians
Denise Davis
Five Steps Forward: Banks Must …
1. Master their data, so they can use it to …
2. Serve personalized, relevant ads for the bank’s products and
services across all channels consistently and in context.
3. Expedite their customers’ acquisition of the bank’s products and
services when they choose (without data re-entry).
4. Curate “partners” who may use the bank’s ad engines to serve
customers with relevant ads that can be one-clicked to acquire.
5. Earn ad fee income wearing a white hat.
