ABA Banking Journal - May 2011 - (Page 22)
PAss tHe AsPiRin
THe BAnker-TO-BAnker exCHAnge
the Headache: Will seniors take to electronic banking?
While the spotlight has often been on so-called “digital natives,” many older customers are surprising bankers with their interest in online and mobile services. What interest level are you seeing and how are you addressing it? Add your ideas on this and all Aspirins online at www.ababj.com/blog/277.html
Remedy 1: Put stress on education Jane Haskin, president, First Bethany Bank, $163.7 million-assets, Bethany, Okla. We are seeing an increase in seniors who are using the internet for banking, and are stressing to them the safety aspect of receiving their statements via email, as opposed to having their bank statement sitting in their mailbox for possible theft. Many of our seniors who are physically unable to shop, enjoy the ease of shopping on the internet. In an effort to protect both the customer and the bank, we have hosted a fraud seminar in which we provide an expert speaker to inform the customers how to protect themselves when using the internet. Topics include how to know if a website is secure when shopping and how to make sure wireless connections are locked from outsiders so fraudsters can’t take over their computer and retrieve their bank information. Since this is new technology to them, they appreciate our efforts to protect them. They hear so much in the media about identity theft they aren’t sure what is safe and what isn’t. We also give a short demonstration on how internet banking works when they sign up. Remedy 2: Give good electronic deal Greg Sisk, retail bank manager and senior vice-president, Greer State Bank, $444.3 million-assets, Greer, S.C. I am convinced banks don’t do enough to reach this group for online banking and mobile. We simply figure older customers just want to keep money in a CD and a Senior Checking account, without asking what they want.
One of our most popular checking accounts is called eBonus. This is a checking account that pays a high rate of interest to the customer—if they agree to receive their statement via the internet; use their debit card at least ten times a month; and have at least one automatic debit or credit. The target audience is the upwardly mobile younger generation. However, I have been pleasantly surprised that a majority of those customers that open the account are in fact senior citizens, because of the attractive rate of return. Some did not use their debit cards at all, but are doing so now, which brings in income. We also save money by not mailing statements. These same customers absolutely love consistently receiving their statement on the first day of each month, via internet. These customers are very proud that they have learned to “do banking” electronically. Many of them have now switched many of their monthly bills to auto transfers and/or bill-pay. It’s a win-win for customer and bank. What this has proven is that senior citizens demand good service and innovative products, which should include electronic banking. Remedy 3: One on one gets it done Richard Lee, president and CEO, Citizens Bank of Florida, $228.8 million-assets, Oviedo, Fla. Definitely seeing some interest here. As a matter of fact I’ve scheduled a meeting this week with a longtime customer, late 70s, who recently lost her husband. We’ll be sitting behind her computer in her house going over how to
use money management software to keep track of expenses. We’ll also show her how to use online banking. She’s excited about the opportunity and eager to learn. We haven’t developed any broad plans to address this issue, but should.
Added answers to recent Aspirins: “How to achieve a better 2011”
Remedy: Helping customers recover John Lehman, president and CEO, First National Bank, $70.7 million-assets, Girard, Kansas It’s time to concentrate on the fundamentals of sound banking. It only takes a few small gains to make a significant improvement to the bottom line. As it does not appear our current economic challenges will end anytime soon, we will continue to devote considerable effort to problem account identification and management. By being objective, yet flexible and creative, we have been able to assist many customers return to better financial status. Long term, nothing benefits us more than successful customers.
“What special niche do you have?”
Remedy: Loans for low/mod rehabs Frank Campbell, president and CEO, Pilgrim Bank, $158.6 millionassets, Cohasset, Mass. We developed a nonowner-occupied lending niche, funding rehab loans on 1-4 family properties in city neighborhoods. Typically these properties are foreclosed or distressed sales. The buyer does extensive renovations using a construction-to-permanent loan product. The properties are rented to low-to-moderate income tenants.
22 | ABA BANKING JOURNAL | may 2011
Table of Contents for the Digital Edition of ABA Banking Journal - May 2011
ABA Banking Journal - May 2011
ABA Community Banking: Getting in on the Prepaid Wave
Pass the Aspirin
Cover Story: #5 and Feeling Good
Smartphones Alter Banking Landscape
Surveys & Trends
ABA Banking Journal - May 2011