How banks should adopt to the changing landscape in the banking industry.- Robin Trehan

Sept. 3, 2009 - PRLog -- Vance Havne said, “The vision must be followed by the venture. It is not enough to stare up the stairs – we must step up the stairs.”

The landscape of the banking sector is changing rapidly and the competition grows fiercer by the day. If banks want to remain viable and increase their return on investment, they need to do more than talk. They need to take positive action by developing and implementing new products and services. This is true for both personal and business banking. Constant innovation is the only way to retain existing customers and attract new ones.

Fully embracing new technology and trends can be an excellent strategy is this regard.
For instance, banks can offer their customers the ability to save time and money by banking via iPhone. They can receive text messages if an account is close to being overdrawn or if suspicious activity has triggered the suspicion of fraud. They can also track their spending, transfer money between accounts and even deposit checks (via a photo taken with the iPhone). By keeping pace as this technology continues to grow ever more sophisticated, banks can maximize their advantage in the marketplace by creating an important point of differentiation between themselves and their competitors.

Banks can also be innovative when it comes to helping their customers save money. Offering programs such as online spending analysis and budgeting tools makes a bank much more attractive to consumers struggling with the ailing economy. Another option is providing custom savings accounts designed for specific needs, such as paying for a child’s education.

Online bill payment has become a standard offering for most banks but there’s always room to add bells and whistles. Banks can help their customers save money and protect their credit by adding a feature to their online bill pay service that sends email and/or text reminders when routine monthly payments are due. They can also include tips that are designed to help the customer save money on the specific bill he or she is paying. For example, if they are paying an electric bill, the screen could include hints on how to use less electricity.

When it comes to thriving in today’s marketplace, banks should remember that “it is better to light a candle than to curse the darkness”. Only by taking action can banks grow and preserve their success.


Robin Trehan is management and financial expert.   More information www.LatestBusinessReport.com