tag:blogger.com,1999:blog-235433516644980443.post7220363062009783338..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Banking: Data hungry and decision challenged?Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-235433516644980443.post-62593645252980899622011-04-06T08:10:43.946-04:002011-04-06T08:10:43.946-04:00Dave,
Great comment. I enjoy opposing opinions to...Dave,<br /><br />Great comment. I enjoy opposing opinions to my own. It makes for a more interesting read.<br /><br />Your comments remind me of a story when I was a branch manager. It was a new branch and I was hungry to grow customers. We had a home equity promotion going on at the time and I requested a calling list from marketing of "most likely's". The marketing department told my regional manager that they had no time for one off requests such as mine. The result: I went down to the courthouse to manually create a list of people that recorded their mortgage in high interest rate years. (16 years ago, hence the manually pulling courthouse records)<br /><br />You and I must travel in different circles Dave. If I lined up 10 community bankers and asked how they identify their most profitable customers, my experience tells me nine would not know or use customer balances to make the determination. I was at a bank yesterday where the CEO said he couldn't pull loan concentration reports.<br /><br />You are also correct that no department owns the data. All must work together to put the appropriate information at the finger tips of risk managers, administrators, and business developers.<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-51475893675528028882011-04-05T23:21:26.709-04:002011-04-05T23:21:26.709-04:00I love data. I have been around data my entire car...I love data. I have been around data my entire career spanning many industries working both in the client and vendor roles. Memory is a funny thing, but I can not remember ever working for or with a company where data was not freely exchanged. In fact, many of the companies demanded a close working relationship between marketing, finance, operations, manufacturing, etc. Cost accountants, controllers, and CFOs have been my friends. I do not think my background is unique. I think it is common place.<br /><br />After getting into banking, I would hear stories. Stories illustrated above by Mike Bartoo and Jeff Marsico. I do not believe them. Yet, I still hear the stories.<br /><br />Jeff posed the question "Could it be that systems are "owned" by different areas of the FI, such as MCIF/CRM in Marketing, the core in IT, g/l in Finance, etc.?" Excuse me! The data is not "owned" by these groups. They are a companies resources and should be used accordingly.<br /><br />Jeff's post also mentioned a survey question about a bank's use of marketing data for strategic planning purposes. To those 48% responders who said yes we use marketing data for strategic planning purposes I say "BRAVO!"<br /><br />Embrace the data.<br /><br />@dmgerbinoDavid Gerbino | Community Bankerhttp://www.dmgerbino.com/?utm_source=Blog&utm_medium=BlogPost_JeffMarsico&utm_campaign=DataHungaryDecisionChallengednoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-17370969145682077152011-04-01T10:49:32.571-04:002011-04-01T10:49:32.571-04:00Jeff - unfortunately, I believe there's a huge...Jeff - unfortunately, I believe there's a huge element of truth in your comment. I still see FIs that refuse to share the different information sources across departments. As a result, only Finance uses the G/L or Profitability systems, Marketing ends up using the MCIF for list generation only, etc. This ends up in different areas discounting the value of the information in other disciplines.Mike Bartoohttp://www.gomarquis.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-73142441763654486052011-03-31T10:38:30.079-04:002011-03-31T10:38:30.079-04:00Mike,
I'm glad you commented because your com...Mike,<br /><br />I'm glad you commented because your company focuses on this issue. Could it be that systems are "owned" by different areas of the FI, such as MCIF/CRM in Marketing, the core in IT, g/l in Finance, etc.?<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-90577920192529629972011-03-30T09:36:58.644-04:002011-03-30T09:36:58.644-04:00Jeff -
I also see these issues consistently in bo...Jeff -<br /><br />I also see these issues consistently in both prospective clients and some existing clients. It's disappointing to see the wealth of information available to banks/CUs that is either discounted or completely disregarded. <br /><br />Regarding your comment about the "top 100 customers" incident. I've done a similar exercise a few times with new clients and shown them a list of their top 20 most profitable clients. I try to do it with all of the management team together so that I can ask how many names on that list they recognize...current record is 14 (70%). Most are less than 50%.<br /><br />I don't know of any other industry that doesn't identify and track their most valuable relationships (value=profit).Mike Bartoohttp://www.gomarquis.comnoreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-2128406967374291452011-03-26T13:15:12.428-04:002011-03-26T13:15:12.428-04:00Further to your comment Serge is this may contribu...Further to your comment Serge is this may contribute to the product pushing we often see in FIs. <br /><br />Product driven strategies in banking would be hard-pressed to deliver a long-term competitive advantage because products are so easily replicated. Focusing on customers or customer segments requires good data to identify the niche and to pursue it, in my opinion.Jeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-58002976894100076072011-03-25T19:58:49.473-04:002011-03-25T19:58:49.473-04:00If you cannot measure it, you cannot improve it!
...If you cannot measure it, you cannot improve it!<br /><br />Maybe the lack of data-driven analysis, in part, explains the dearth of focused marketing campaigns that result in measureable impact to revenues and profits. Maybe it is this same problem that leads banks to focus their marketing programs on "free checking account" offers rather than pursing customer segments that actually drive growth and profitability.<br /><br />Admitting to a problem is the first step. Now FIs should take measures to address the challenge and act to turn it into an enermous opportunity.Serge Milmanhttp://www.optirate.com/banksnoreply@blogger.com