New Account Growth
The Evolution of Financial Institutions: Is Your Customer Acquisition Keeping Up?
Doug Forinash
3 min read
Over the past two decades, financial institutions have undergone a seismic transformation. From the proliferation of brick-and-mortar branches to the digitization of banking services, the industry has evolved dramatically. However, as financial institutions embrace technological advancements, customer acquisition strategies have lagged behind remaining largely the same as they were 20 years ago. In this article, we explore the evolution of banks and credit unions, scrutinize the stagnation in customer acquisition methods, and present Bundlefi's innovative solutions to propel community banks and credit unions into the digital age.
1. Branch Evolution: From Tellers to Kiosks
The traditional branch model boasted an abundance of branches, each staffed with a seemingly-endless supply of tellers often occupying an entire teller line that stretched the length of the branch. Today, the emphasis has shifted from quantity of tellers to digital solutions. Digital kiosks and ATMs have replaced the need for numerous tellers, enabling financial institutions to focus on maintaining an expected level of service while simultaneously reducing branch headcount and overhead.
2. From Paper to Digital: A Technological Leap
When was the last time you balanced your paper checkbook? Once solely reliant on checkbooks, deposit slips, and withdrawal slips, financial institutions and their customers have gradually transitioned into the digital realm. Add to this online banking which empowers customers to manage their finances from anywhere, and it becomes very clear how financial institutions have migrated from paper to the digital age.
3. Changing Role of Bank Officers: Empowering Consumers
In the past, bank officers held the keys to loan underwriting and approval, often within the branch. Now, centralized underwriting centers have the final word while digital platforms empower consumers to access financial products and initiate loan applications independently, often without the need for in-person visits.
4. Consumer Foot Traffic vs. Online Dominance
The advent of online banking has revolutionized in-branch customer interactions – or the lack thereof. Modern consumers have the convenience to leverage online banking and conduct the vast majority of their banking activities online without ever stepping foot inside of a branch. This shift poses a challenge to traditional customer acquisition and cross-sell methods reliant on walk-in foot traffic.
Why Has Customer Acquisition Lagged?
Despite these transformative changes, customer acquisition strategies for community banks and credit unions have not kept pace with the rapid evolution of financial institutions. Many institutions still rely on traditional methods like outbound sales calls, direct mail, local community involvement, and referral programs, which were all once great tactics, but are these tactics enough in the modern era to attract and retain new consumers when you’re competing against the mega banks?
Bundlefi: Bridging the Gap to Modern Customer Acquisition
In this era of digital dominance, Bundlefi stands as a catalyst for community banks and credit unions seeking to modernize their customer acquisition strategies. Our industry-leading digital consumer platform, combined with full-service marketing agency capabilities, propels financial institutions into the modern era. We bridge the gap between traditional and contemporary customer acquisition, ensuring that community banks and credit unions thrive in the evolving financial landscape.
It's time to evolve your approach to customer acquisition and explore the possibilities with Bundlefi. Schedule your free consultation today to find out how Bundlefi can supercharge your customer acquisition efforts for considerably less investment than you might think.
Finally, stay tuned for the launch of our completely redesigned industry-first digital consumer acquisition platform!