On the road with Jim……Westborough, MA

June 2, 2009   Posted in Uncategorized

ontheroadwestboro21

OK, so it wasn’t a long road trip for me!

The event was the Massachusetts Bankers Association’s Directors and Trustees College.  The audience included about 80 bank directors and trustees.  My topic was “Banking Industry Trends and Strategic Risk Management.”

We used SurveyMattersTM, our instant polling service, during the session.  Directors answered polling questions about the economy, competition, consolidation, the Internet, customer demographics and regulation.

Here are some of the polling highlights:

  • Attendees predict a steady pace of continued consolidation of area banks fueled by merger activity. The top reasons they see for these mergers include earnings pressures, rising costs and pursuit of economies of scale. Many directors were bullish, short term, on de novo banks, predicting several brand new Massachusetts banks opening next year.
  • Over 90 percent of directors and trustees rely on the Internet. Email, online purchases, news, banking and travel booking are the primary Internet activities of the group.
  • Banks are already confronted with the challenge of satisfying the distinctly different preferences of two customer segments – bank customers that conduct branch transactions and customers that mostly use the Internet for banking. Most attendees said that their bank’s primary customer segments, Boomers or Swing Generation consumers, often prefer the branch. Their new customers, however, are most likely to be the Internet-focused Gen Xs and Gen Ys. It became clear that some banks must continue to focus on Internet/mobile banking technologies to capture these Gen X and Y customers.

One strategic message that I delivered was that greater technology investments by banks will require greater vendor due diligence and more comprehensive risk management to mitigate any potential problems that could accompany a heavier reliance on advanced banking technologies.

Some good news discussed during the day was the solid footing of the Massachusetts banking industry during the midst of a “once-in-a-lifetime” economic downturn!

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About Jim Jones

James D. Jones, a national speaker for 16 years, has presented to financial services and mortgage audiences for organizations of all sizes.More >

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