What’s the Deal With Small Business Banking? January 18, 2018 10:00 AM – 11:00 AM CST Bob Neuhaus Senior Consultant at J.D. Power Financial Services Practice Jack Hubbard Chief Experience Officer, St. Meyer & Hubbard Julie Kleffel Executive Vice President, Small Business Banking at Seacoast Bank
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What’s the Deal With Small Business Banking? · Serving Small Business Customers in the Branch 79% 71% Small Business Banking Retail Banking 24.8 13.6 Small Business Banking Retail
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What’s the Deal With Small Business Banking? January 18, 2018 10:00 AM – 11:00 AM CST
Bob Neuhaus Senior Consultant at J.D. Power Financial Services Practice
Jack Hubbard Chief Experience Officer, St. Meyer & Hubbard
Julie Kleffel Executive Vice President, Small Business Banking at Seacoast Bank
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§ 10 Minutes With • Joe, Mark, David, Tim, Tom, Jack
§ LinkedIn Publishing • My United States of Sales Series
§ Conversations Quarterly • Best one ever
§ Public Workshop • Two open seats for April 24-25
§ Business Finance Basics • You want deposits?
What’s On Our Plate?
Some Q1 Updates
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§ Senior Director, J.D. Power Financial Services Division § Senior Positions at Axiom, TNS, Greenwich § Results generating banker
M&A related consolidation is more or less offset by de novo bank creation
Post-Crisis
M&A and bank failures pick up steam with no de novo bank creation
49.7% Consolidation Since 2008
316 310 307 309 300 308 313 322 308
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 Source: SNL Financial and FDIC.gov. Note: Includes Commercial Banks, Savings Banks, and Savings & Loan Associations. Number of banks measured at year end with the exception of 2016Q3 (latest regulatory data available). A bank is included if the charter is still outstanding as of 12/31 of that year with the exception of 2016Q3.
288 248
228 212
201 183
164 155
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Disrupted Industries
January 26, 2016
French taxi drivers clash with police in anti-Uber strike
December 31, 2012
Tribune Co. emerges from bankruptcy
November 6, 2013
Blockbuster Video-Rental Chain Will Shut All U.S. Stores
Bloomberg
January 17, 2017
Sears Clings to Catalog Thinking in an Online World
DealB%k
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It took Hilton Hotels 93 years to build an inventory of over 600,000 rooms
Airbnb got there in just 4 years and now has close to 900,000 rooms
Source: TechCrunch
FIVE CUSTOMER
NEEDS
PAY FOR THINGS FINANCE THINGS GROW THEIR MONEY MANAGE THEIR MONEY PROTECT THEIR MONEY
Customer Financial Needs Have Not Changed in 1000 Years
23 Source: Ignite Corp. and Roger Goldman
FIVE CUSTOMER
NEEDS
PAY FOR THINGS FINANCE THINGS GROW THEIR MONEY MANAGE THEIR MONEY PROTECT THEIR MONEY
Its How They are Met that Have Changed Drastically
24 Source: Ignite Corp. and Roger Goldman
The Community Banking Perception Gap
“Community banks cannot serve the broad financial needs of a business or consumer”
“Community banks can only nibble around the edges of a much bigger relationship, and must take on more risk in order to grow”
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“Community banks cannot compete in a digital world”
Digital Defined
Lower Technology Costs Have Leveled the Playing Field Digital Capabilities and Software Enable Smaller Banks to Compete in Ways Previously Unimagined
Digital Customer Servicing Capabilities Mean Lower Costs
Marketing and Analytics Software to Drive Sales Growth
Level Playing Field is Now a Reality
IMPLICATION: Customers choosing lower cost channels for service ‒ good for customer and bank
IMPLICATION: Banks can now drive additional sales
IMPLICATION: Small banks can now compete in ways previously unimagined… and drive results today
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Confidential&ProprietaryInformation
Central to Any Bank’s Future Success Will Be their Ability to Use Data to Drive Greater Value for Customers and Shareholders
Analytics Capability is a Strategic Advantage
It Starts with Customer Lifetime Value
“Knowing each customer’s profitability is the first step to managing them”
“If you can’t sort out your customers — if you can’t look at them and know who is good and who is bad — then you can’t be customer centric”
Peter Fader Professor of Marketing
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Power has Shifted from Supplier to Customer in Every Industry
• Proactively identify customer pain points
• Constantly audit your business model
• Organize resources around opportunities
Yesterday Today
Positioning digital innovation at the heart of our business
Source: Cap Gemini Technology Consulting 28
Customer/Industry InsightBuild knowledge. Challenge customers with insight to help them grow and prosper
Bringing Together Marketing Analysis and Business Banker Knowledge
Analytics Leverage data from multiple internal and external sources to better understand customer needs
CollaborationClose relationship between Business Banking and Marketing to refine GTM strategies
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Data Management and Effective Utilization is Key
“Because we are more aware of the customer groups we create value with, we can fine-tune our customer treatment strategies as well as our customer acquisition efforts to generate very high returns.” “Our size is an advantage because our data isn’t
trapped in a bunch of different silos. We have one core banking provider, everything flows through it, and the data is readily available.”
-Jeff Lee, Chief Marketing Officer Seacoast Bank
Source: “Finding your best customers with analytics” and “Small Banks Using Big Data”
Unlike Other Community Banks, Seacoast Uses its Vast Data Set to Recognize and Meet Customer Needs
Auto
mat
ed O
ffer
s
Inbound Call
Outbound Call
In Branch
Email
ATMs
Online Banking
Direct Mail
Mobile Banking
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Unique Approach to Serving Our Customers (Patent Pending)
Behavioral Data
FIVE CUSTOMER
NEEDS
PAY FOR THINGS FINANCE THINGS GROW THEIR MONEY MANAGE THEIR MONEY PROTECT THEIR MONEY