Innovation Driven Growth David L. Peterson

Marketing is an essential part of every organization. Statistics could be more positive when it comes to bank marketing. Bank marketers have a hard job and need accurate targeted data to create very specific campaigns and confidence in their reliability. It's an ongoing problem to resolve. Help focus marketing campaigns that will generate measurable results and outcomes without crossing the creepy line. 
⭐ What is Baader Meinhof phenomenon: bank marketers indicated they have access to a lot of data useful for marketing. 01:39🔵 Profitability is important data, and it's not ranked high enough: if a nonprofitable customer leaves your bank for a competitor, your overall profit goes up. 02:50👉 Bank marketers are getting more comfortable using the data they have access to, but they are still not very confident about the quality or accuracy of the data they use to make marketing decisions. 03:57✉️ Get very granular about the specific subset of customers or prospects: snail mail marketing is incredibly effective if targeted to a particular subgroup to which its appeal is uniquely tailored. 04:53🔴 Give our marketers accurate, targeted data that will enable them to focus marketing campaigns that generate measurable results. 07:56
 Links:
 Marketing’s role in data analytics: https://bankingjournal.aba.com/2022/08/marketings-role-in-data-analytics/?utm_source=eloqua&utm_medium=email&utm_campaign=newsbytes&utm_content=NEWSBYTES-20220824
 Graphic 1: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-1.1.png
 Graphic 2: www.bankers-bank.com/wp-content/uploads/2022/10/Blog-Image-2.2.png
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com

 Big data centers are getting more and more popular, and it's expected for institutions to use them. Are they necessary for banks? David shares his view on this actual topic. There is a need for a data acquisition tool that can connect to external systems without centralizing data. The speaker outlines three key outcomes for effective data management: dashboards, graphical reporting, and targeted marketing lists. The episode concludes by urging banks to focus on outcomes that drive business success and improve customer experience, rather than getting caught up in the pursuit of big data solutions.

Banks should be good stewards of their data and not be embarrassed or afraid to use it.
Notes:  
🤔 Banks shouldn't be chasing a solution that fixes a nonexistent problem. 00:55
🟫 Bankers have several types of data like financial, customer, and transaction data: there's an idea to create a new repository that extracts from all the existing data sources into some single composite database. 02:40
😵‍💫 Even if you get all the data extracted and normalized but gets dated: daily update of all data from every source. 04:08
✅ There are three categories of data management outcomes - creating dashboards, graphical reporting, and marketing lists: deliver value beyond the cost of acquisition of the chosen management tool. 05:21
👉 The tools you're looking for should specifically address how you accessed third-party databases without pulling all of that into a consolidated new database. 08:16
❗ Tools you choose should perform the outcomes that you want: smart bankers are the ones who force vendors to show specific outcomes. 09:31
🤩 There are big payoffs for the banks that can get their arms around their data: improve the gross margin, internal efficiencies within their institutions, and customer satisfaction. 12:16

 Links:
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com

Where failure is discouraged, much less rewarded, why would anyone stick their neck out on the line, bringing a creative idea? Innovation occurs when failure is an option.
Challenging the status quo and allowing failure, will initially lead to disruption, however, ensuring failure leads to learning will allow for improvement in banking as a whole. There is much to be learned about the challenge of allowing failure within your organization.
Notes:⛹️‍♂️ Innovation occurs when failure is an option: the players who lead baseball leagues and home runs almost certainly lead that league into strikeouts - apply that to your business. 01:20✅ Not only should bankers stop punishing failure, but encourage it using the fail-fast fail-often model. 03:00👉 Executives should encourage innovation and responsible risk-taking across the entire enterprise: ideas that don't go anywhere are not a strikeout - usually, it takes 30 ideas to get one right. 04:01⁉️ Innovation occurs when failure is an option: will you take up the challenge to encourage failure at your organization? 06:07
Links:
The Financial Brand Fear of Failure Hurts Innovation in Banking: https://thefinancialbrand.com/news/banking-innovation/fear-of-failure-innovation-in-banking-deming-management-transformation-151415/
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com

 In the world of faster payments, fraud is a hot topic. But is it the technology's fault? Not really. Fraud can happen with any payment method. It's about individuals making mistakes.

Learn more about App Fraud and its implications in the latest episode of our podcast. We dive into the industry's response and the possible changes ahead.
Notes: 💸 The banking industry is going to overreact to address app fraud: David explains why Zell draws the attention of criminals looking to commit payment fraud. [00:36]
❓ The systems that the customers are using operate exactly the way they were designed: is the financial institution responsible for the behavior of their customers? [03:07]
👉 While the banking industry should undertake any reasonable efforts to protect customers, it cannot absolve the customer from the responsibility for their actions: clients are informed that payment to the recipient is final and irrevocable. [05:35]
  
 Links:
 A resource from the Federal Reserve on how they will address fraud: https://explore.fednow.org/resources/fraud-at-a-glance.pdf
 Article on LinkedIn that has more on APP Fraud and Reg E: https://www.linkedin.com/pulse/does-reg-e-cover-scams-pj-rohall
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com 
 

 Having the right leadership in place for your digital channels is extremely important. If you want your branch to have long-lasting success, it's time to find leaders who will bring your virtual branch up to the same level as your physical branch. A successful future needs innovative and open-minded leadership that is ready to push the strategic vision for your virtual branch forward and treat it with the same level of scrutiny as a physical branch.
Show notes:✅ 9 key points about virtual branches in banking that sum up Pinkston's article and the previous podcast episode. 01:14👉 Vendors should be held accountable for the systems they deploy: a virtual branch senior executives should regularly communicate with all relevant vendors to discuss product roadmaps, suggest enhancements, and actively participate in user groups. 02:25🔵 A senior executive of the virtual branch should have specific attributes and an open and innovative mind. 03:37🫵 Bankers, own it! 05:13 
Links:
 Blog post: www.bankers-bank.com/who-owns-the-virtual-branch-part-2
 The article by Jessica Pinkston: “Who Owns Digital? Ugh, That’s the Problem for Bankers” 
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com 

Setting up proper accounting for your virtual branch is crucial for future success. The value of your online presence must be clear and concise in order to foster the support and funding it needs from the leadership in your company, so it's time to start strategizing how to measure this. The truth is that it's very likely that your virtual branch is much more profitable than you think, but is being underrepresented in your general ledger. The future of your business may depend on the quality of the digital solutions that you offer, so start investing in your online services today!
Notes👉 The importance of setting the proper accounting in your General Ledger (GL). 00:52✅ Your virtual branch may include consumer online banking, online cash management/treasury services, mobile banking, executing payments, access to eCommerce and others can be part of the virtual branch. 02:08❗ You are probably not accurately representing the actual activity of customers on your GL: Peterson paints four scenarios to show you that. 04:23💲 GL accounting is important because it drives executive decision-making on where money is spent. 08:25‼️ The virtual branch must have its own management and budget: the support of the virtual branch by the C suite and board must be equal to or exceed the support given to physical branches. 10:45⭐ Your virtual branch is likely your largest and most profitable branch: this exercise will not only highlight the need for a permanent change to your GL, but also make it clear that the virtual branch needs to be upgraded. 13:06
Links
 Email David: david@davidpeterson.com  
 Connect with David: www.linkedin.com/in/dlpspeaks
 Learn more about David: www.davidpeterson.com
 Consult with David: www.i7strategies.com
 Sail with David: www.i7sailing.com