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PCBB Banc Investment Daily April 19, 2018
Banc Investment Daily
April 19, 2018

Going Ape For Real Time Messaging

Summary: Big banks have real time messaging as a standard practice, but even some community banks have started this practice. We provide you with the reasons why.
If you are wondering how advanced humans really are from apes, consider this strange fact this morning. It seems researchers somewhere fed human birth control pills to gorillas and found they work just as well as they do on humans. Maybe that's also why they say humans share over 90% of DNA with primates.

The DNA of big banks is that they don't wait for customers to visit a local branch, but rather have ramped up real time messages like "your checking balance is low" or "your credit card activity is unusual." While this may be a basic service for big bank customers, even some community banks are doing it.

A community bank in FL, another one in NE and one in IA are all advancing their digital communications with real time messaging. They say it's good business for them because doing so helps retain tech savvy customers and attract new millennial ones. If you find yourself echoing these sentiments, you may want to think about expanding your bank's communications.

Community banks have plenty of options when it comes to ramping up digital communications. It also helps community banks to leverage customized services and differentiate themselves. Consider that sending a quick message is the natural extension of a good impression that has been created at the last branch visit.

Digital communications also make it easy for customers to stay in touch with the bank. Customers can manage alert preferences and alert types to their needs, so messages from the bank are never a nuisance. The customer experience is improved and you stay better connected.

Customers appreciate this sort of thing and tend to deepen their relationship with banks that offer such options. According to a Harris Poll, 67% of those surveyed said alerts give them a sense of security. Customers can get important notifications more quickly than ever and can act on them.

Of course, it helps with fraud detection as well. An instant alert can determine whether a transaction is authentic or not. The customer and the bank get real-time information to stay safe in a very convenient way.

Digital messaging communication may not be for all community banks, but it may be something to look into. After all, more customers are asking for it, so it could make sense in order to keep growing the customer base.

One way to start is to talk to your core provider to see what options are available. Some may be easier to incorporate into your digital platform than you think, while others may not, but it never hurts to ask.

If you decide to use digital alerts and notifications, be sure to bring your staff up to speed on the process as well, since there may be follow up conversations with the customer after an alert is sent. Lastly, be sure to communicate this new feature with your customers and prospects. Since it is a digital feature, using email, website, social media, and within your mobile app are good ways to do so. We hope that this has all been useful and you can leverage it up within the DNA of your bank as it continues to evolve well into the future.