Show notes
In episode 55 we talked about the Neobank phenomenon. Are they taking away younger customers away from the traditional financial institutions? What if traditional financial institutions could tailor the services for small to medium businesses and startups and assist individuals in starting businesses, providing a checklist, classes, mentorship, events, and training. The key is to market your services as effectively as neobanks without the need to create one, fostering a differentiated and valuable proposition for potential business customers. â ď¸ Neobank creates a compelling argument to some targeted groups to move away from their traditional bank and to come "bank" with them. 00:52đ Brex launched in 2017 with a specific purpose of focusing on serving startup companies, and in 2022 they were valued at $12.3 billion: now, they're less suited to meet the needs of smaller customers. 02:04đĄ Target companies Brex left behind to open accounts at your institution and adjust your offer for startups to make them long-term clients. 04:47â
Community banks should consider building services that assist an individual in starting a business: David shared several ideas on how to do that. 06:40â Your non-interest service revenue is heavily weighted toward business customers, so you have a vested interest in getting more business customers via calls and programs. 07:47đ˘ Potential clients should know that your institution provides a service targeted to their unique needs and mitigates any interest in them looking for shiny, bright online banking options. 08:36 đ You should market your services as if you were a Neobank. 09:07 Links: Episode 53: Trouble Ahead for Neobanks? Article: Brex, which started out serving startups, now says it isâless suited to meet the needs of smaller customersâ Email David: [email protected]   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com
