tag:blogger.com,1999:blog-235433516644980443.post7084862810080990493..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Does fee income hedge banks and credit unions from spread swings?Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-235433516644980443.post-54632196820005572862013-05-28T19:05:03.547-04:002013-05-28T19:05:03.547-04:00Gents,
Developing the product lineup based on cus...Gents,<br /><br />Developing the product lineup based on customers/ members... what a concept! But the challenge is we often take on these businesses by purchasing them at a premium, and then compensating principles of the business to such an extent that they deliver no profits. So we end up paying for the business... twice!<br /><br />The key may be to grow these businesses organically, beginning with the seed of an experienced person, and planting the garden from there so we are executing our strategy, instead of a purchased firm's principal's exit strategy.<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-20789555508535685412013-05-28T15:39:43.775-04:002013-05-28T15:39:43.775-04:00Jeff - good post. There is no doubt that Communit...Jeff - good post. There is no doubt that Community Banks and Credit Unions may be able to increase fee income by offering products & services including Insurance, Trust, Advisory, Wealth Management, etc.. But, simply slapping more products & services on their existing 'menu' is likely to result in little or no improvement.<br /><br />To achieve success, Banks and Credit Unions must develop a business strategy inclusive of specific customer / member segments, product offerings, channels, sales / cross-sell strategies, and pricing. This, combined with a focused marketing and relationship management effort is perhaps the only way for FIs to stand out, to differentiate against their traditional and ever-growing cohort of non-traditional competitors. Serge Milman | Optiratehttp://www.optirate.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-45018418735166591082013-05-28T10:16:43.858-04:002013-05-28T10:16:43.858-04:00Jeff,
Good insights on your post. Fee income is i...Jeff,<br /><br />Good insights on your post. Fee income is indeed tricky. Banks and credit unions must sell the value of those fees to consumers. In fact, it's not about fees: it's about value. That may be why financial institutions struggle with fees and profitability. We certainly can't live off spreads anymore. But living off fees is equally challenging.<br /><br />MarkMark Arnoldhttp://www.markarnold.comnoreply@blogger.com