Unlike 2008-2009, when banks were blamed for playing a lead role in the recession, customers are seeing community banks as part of the solution to the current crisis. A recent JD Power study highlights that 67% of people are satisfied with their bank’s response to the COVID-19 crisis and appreciate the efforts taken to support customers and local communities that are struggling. It’s crucial for financial institutions to leverage this positive perception and to continue the emphasis on raising brand awareness as you focus on your strategic plan for 2021.
Community financial institutions especially have gone above and beyond for their customers and communities during this time. Perhaps for the first time, the benefits of “being local,” which community institutions hold dear, are truly apparent to customers. So, don’t hold back: now is the time to stress the competitive advantage you have.
Take the Paycheck Protection Program (PPP) for example. A Galapagos study indicates that 74% of businesses believe that community banks did a better job with the program and helping local businesses secure PPP funding. Many small businesses were unsuccessful in gaining funding when they applied with larger national financial institutions, and later accessed financing after applying with a community FI. For small businesses, this program served as a lifeline and the care and guidance businesses received from their local bankers was instrumental in ensuring their survival.
Community FIs need to emphasize the role they played during the pandemic. In addition to helping businesses secure much-needed financing, they delivered other relief solutions to their customers. From waiving service fees to offering temporary mortgage relief and beyond, community FIs reacted with empathy and solutions to ease the financial hardship their customers might be experiencing because of the pandemic.
We saw numerous clients implementing community support and outreach initiatives to help their neighborhoods and business communities remain vibrant. One client took this call to support their community to heart, rallying consumer support for local businesses. With customer authorization, the bank compiled a local directory of businesses and made it available to the community, offering support and partnership to their valuable business customers.
Now more than ever, local matters. When you tell your community that “We’re all in this together,” they know it’s true because they know that as a neighbor, you’re encountering the exact same struggles they are. Encouraging public safety and adhering to social distancing guidelines doesn’t equate to isolation. Creative FIs are finding ways to safely engage their customer base and to stay top-of-mind. Many are remaining active in virtual charitable races. One FI provided volunteers with kits to create blankets at home for hospitalized children. And let’s not forget Zoom. Though many in-person events have been sidelined for the time being, attendee numbers for virtual Chamber of Commerce coffee chats have been on the rise!
Continuing efforts to connect locally should be the priority in the short term, but what about in the months ahead? FIs should be mindful of their customers’ changing priorities and expectations and adjust their positioning accordingly. A July 2020 survey from Mintel Global Trends identified that consumers are seeking solutions that improve their community and personal well-being, and want FIs that are easy to work with, empathetic, responsive, and reassuring while delivering personalized service. Consumers are feeling the need to regain control over their finances. It’s imperative that FIs seek opportunities to show solutions and continue to emphasize their core values to meet the needs of customers. But what do your customers need? Now’s the time to conduct the research to understand.
There is an abundance of tactics that can be deployed to support your efforts to increase brand awareness, but social media will likely play an increasingly important role in engaging your customers and community. In your organic and promotional content, social media allows your bank or credit union to demonstrate its core values and local commitment while engaging and being accessible to your followers and community. Time spent online has increased exponentially during this period, don’t miss the opportunity to engage with a captive audience!
Now is the time to align your brand to better engage customers and communicate competitive advantage during the tough months ahead. Complete this form or call us to start the discussion.