91% of Banks under $1 billion in assets do not have a data analytics strategy.
A recent study by the Financial Brand shows a direct correlation between bank size and the ability to use its customer data to drive high performance marketing. For smaller banks, (those under $1 billion in assets) only 1 in 10 use customer data to make marketing decisions. It’s good news if your institution is “the one” for the remaining 9 banks their customers are falling prey to data driven competitors.
For the larger banks (greater than $50 billion in assets) 80% are using their customer data to retain their profitable customers and steal the customers of smaller institutions.
The shrinking number of community banks is a reflection of the complicated marketing struggles facing these institutions in a data-driven Digital Age. According to the FDIC, there were approximately 14,350 community banks with less than $1 billion assets in the United States in 1985. Today there are fewer than 6,000. Certainly there are many factors that have contributed to this decline, but, it’s hard to ignore the significance of the inability of these institutions to use their customer data.
On the left, the research is “The State of Data Technology in Credit Unions” conducted by the Filene Research Institute. It is a recent survey of credit union leadership. The survey compares the relative importance of marketing activities (importance) and the ability of the credit union to adequately perform these functions (satisfaction). For some of these activities almost 97% believe these activities are of primary importance to their institution -and- only 1 in 3 believes their institution completes the task in a satisfactory manner.
Why are credit unions and community banks having so much trouble implementing these fundamental marketing activities? One thing these activities have in common is the need for actionable customer data. That’s why Empower is the right data driven marketing product for these institutions.
Empower Your Analytics offers credit unions and community banks the competitive advantage of being able to implement data driven marketing campaigns to cross-sell existing customers and acquire new ones. We have designed Empower with the specific personnel, budget and experience challenges that smaller financial institutions face when implementing data driven marketing programs.