Western Independent Banker - November/December 2008 - (Page 42)

By Anne K. Scully, WIB Service Corporation President y y WIB Service Corporation Report Win the War for Deposits and Account Acquisition with BancVue and FIRST ROI: WIB’s Newest Endorsed Value and Income Program (VIP) Partners These are unpleasant facts; I know it. But then most historical facts are unpleasant. — Aldous Huxley, Brave New World THE FACTS ARE real and not very pleasant: In the battle for deposits and market share, mega and Internet banks have run roughshod over community banks. Today, community banks hold a mere 20 percent of all deposits, a 50 percent decline in the last 15 years. How did this happen? Suffice it to say, community banks are facing challenges they’ve never faced before. Dynamic changes, most notably technology and the internet, have transformed the financial services marketplace. It’s introduced new competitors aggressively marketing new products through numerous distribution channels to your customers. Factor in our current, ugly economic conditions, rising expenses and shrinking margins and the result is not pretty. In our view, going back to the days of Jimmy Stewart in It’s a Wonderful Life or standing passively on the sidelines are not options for community banks. We believe community banks can retain their competitive edge and increase market share if they adopt a strategy that focuses on innovative products, a real internet presence, online marketing and leveraging technology to reduce expenses. REWARDChecking®, FIRSTBranch® and REALSite®, offered by our two newest Value and Income Program (VIP) Partners— BancVue and FIRST ROI—give you the tools to successfully implement this winning strategy and win the war for deposits! BancVue’s REWARDChecking REWARDChecking, BancVue’s flagship product, is a free checking account which offers a high interest rate and ATM fee refunds when consumers meet cost saving and revenue generating electronic banking requirements. REWARDChecking helps community banks fuel deposit growth by attracting affluent, tech-savvy customers that have been shown to maintain higher balances, generate greater fee income and use more electronic services than the average checking account customer. REWARDChecking accounts are typically twice as profitable to the bank as free checking and the attrition rates are 70 percent lower. Nearly 500 community financial institutions in 48 states are using REWARDChecking to add millions of new deposits and thousands of new customers while lowering the total cost of funds. Profitability Guaranteed BancVue guarantees that its REWARDChecking will deliver profitable results for your bank. If your profits from all of your REALChecking System accounts do not exceed BancVue fees, after one year, BancVue will pay you the difference between the profits and the fees. FIRST ROI’s FIRSTBranch FIRSTBranch, offered by marketing partner and WIB-endorsed VIP FIRST ROI, is an innovative, turnkey platform that gives community banks the tools and marketing mix to transform their brick and mortar branches into a formidable online presence. Beyond Brochureware to Cyber Branch From sales-driven website design to pay-per-click marketing to search engine optimization, FIRST ROI can manage your bank’s online presence and work with you to improve performance. FIRST ROI offers your bank a level of pizzazz that meets or exceeds the typical large bank high-budget marketing program and takes your website from “brochureware” to “cyber branch” status. They will help your bank leverage the Internet channel to attract new customers, generate new account applications and leads and compete with the mega and net banks online. Why is this important? According to a recent Forrestor study, 71 percent of ALL consumers search for their financial services provider ONLINE! If your bank is not “playing” in the internet space, you’re only tapping into 29 percent of your potential target market! Who comprises the bulk of that “71 percent-sector?” Baby Boomers and Gen Y, the two generations possessing the greatest wealth accumulation potential of all generations. Beyond missing a significant opportunity, factor in account acquisition costs and you will wonder why your bank had not established an online account “Determining how to effectively address the continually evolving world of on-line banking was an intimidating prospect for our bank. Fortunately, First ROI provided exactly the answers we needed, which resulted in a sophisticated, competitive, on-line strategy for our institution.” — Jeff Manser, CFO, Bank of Idaho 42 www.wib.org Western Independent Banker http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - November/December 2008

Western Independent Banker - November/December 2008 Contents A Message from the President & CEO A Practical Approach to Director Evaluations Director Assessment: New Standards for a High Performing Director The Best of the West: Traits of High Performing Banks Best Practices Checklist for the Audit Committee The Real Performance Metric: It Takes a Balance of Profitability and Growth to Be Successful The Role of the Board in a Credit Crisis A Bank Director's Obligation to Be Aware of Regulatory Change Benefits Tied to Performance Receive Higher Approval Rating by�Board Members Increasing Shareholder Value: Key Profitability Drivers Board Portals Streamline Efficiency for 21st Century WIB Service Corporation Report WIB Calendar Welcome New Members Index to Advertisers advertiser.com

Western Independent Banker - November/December 2008

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