Smart & Bold Insights


FIs, It is Time For Your Hydro Flask Moment

By Becki Drahota on February 11, 2021

If you don’t know what a Hydro Flask® is, just ask any self-respecting 13-year-old. A Hydro Flask will carry anything. You want tea? Put tea in it. You want water? Put water in it. Whatever you want, you can take with you in your Hydro Flask.

HydroFlaskMoment_BlogContent

Because of its design, you can slip the slender Hydro Flask into a backpack. You can throw it in the backseat of a car and have the dog sit on it. You can drop it through the bleachers. It’s sturdy. It’s light. It's very anti-fragile. You can take from it what you want, but you can take it wherever you are. That’s the model we need to look at as we go forward.
There are three things we can do to help us get there:

First, we’ve got to put ourselves in the shoes of people experiencing today’s pain points and answer those pain points. My best example (this seems like years ago when I actually went to airports and flew places ...) I was willing to take money and put it in my Uber account and let it sit there earning nothing, because, if I did that, when I landed and was in line at the airport to get to my hotel, I was going to get one of the first five cars, because I had loaded that cash on my card.

The next thing we need to do is go back to what every CEO wants (low-cost deposits, core relationship growth, asset quality, non-interest income, and brand equity). Taken together those 5 things create value, and we need to not think that value can only be created 1 or 2 ways. Here are examples of ways we can create value:

Right-size your cost structure. If there’s one thing that COVID has taught us, I think it’s that we can be a lot more efficient in ways that we had not realized. Banking used to be largely activity-based, but now must be results-based because a machine is (or should be) doing the heavy lifting for activity-based things.

Create new revenue streams. Can you be the solar energy lender across the country or across the region? Can you be the premier provider of medical equipment for dental clinics? Are there ways that you can differentiate yourself and take the geography out of your footprint? Adding a market makes sense, and acquiring deposits always adds value, so long as they’re not all CDs.

Don’t fool yourself. Because you’re buying new technology, you don’t automatically have a plan. You’ve got to figure out how to leverage all of the things you’re going to do with that technology.

Finally, transition from incremental to transformation in everything you do. Since day one, I have never seen a plan from any financial institution that didn’t say, “Well, in 2020, we had a 4% loan growth and a 6% deposit growth. So, in 2021, we’re going to shoot for a 5% loan growth and a 7 ...” We have to stop thinking in terms of growing by a small incremental change over the previous year and start understanding that transformational change has to have a different metric.

In short … Don’t be driven by fear. Be driven by what’s important and relevant and will help you get the 5 things every CEO needs to get done. You’ll be useful. Strong. Portable. And powerful.

 

Have questions or want to find out how to partner with Mills Marketing? Please contact us, or email us directly at inquiries@MillsMarketing.com

 

Topics: Research


About The Author
Becki Drahota

Becki started Mills Marketing in 1975, and she’s as immersed in the business today as when she opened the doors. Her excitement about working in an industry she believes in, with people she cares about, and clients who are smart and dedicated, is truly contagious. When not transforming data points into excellent solutions for Mills’ clients, Becki is speaking to bankers and directors nationwide, teaching leadership skills, and facilitating strategic plans.

 

BankBeat

Is your board an ‘asset’ or an ‘audience’?

Directors spend 90 percent of the board meeting in silence. Management reports are important and necessary, but if your agenda is designed to just repeat what directors have already read in your board book, your bank is missing...

 


Independent Banker

4 community banks with eye-catching names

“In today’s digital universe, having a name that no other bank can replicate, assuming you’ve trademarked it, is a core element to enhance brand equity,” says Becki Drahota, CEO of Mills Marketing...

 


BankBeat

What’s Your Brand Plan, Stan?

Managing and curating your bank’s brand has always required discipline, vision and creativity. Today, industry disruption and COVID-19 have added a new mandatory: relevance.