The banking industry is (and likely always will be) one of the most prevalent markets in our modern society. It’s also highly sensitive to changes in technology, and must constantly and consistently adapt in order to meet the ever-evolving needs of its customers.

NobleBank & Trust, a thriving financial institution headquartered in Anniston, Alabama, is no stranger to these types of changes. And recently, we had the opportunity to speak with Anthony Humphries, President and CEO, to discuss the challenges of running a financial institution in the digital age.

WN: What was the biggest challenge you faced in opening up a new bank?

Anthony: It would be difficult to single out one challenge as the biggest when we started NobleBank ten years ago. Among the many challenges we faced were (1) Putting together a team, getting others to believe in the vision we had for the new Bank; believe it enough to leave a good job, in many cases, for a startup venture that might or might not get off the ground, much less be successful and offer long term employment.

(2) Attracting investors who also had to believe in a vision as that is all we had to sell. We also had the challenge of attracting customers; folks who would trust a startup bank with their money. Would enough people trust a new bank when there were already several from which to choose.
Fortunately for us, we were able to put together a great group of directors and a tremendously talented group of bankers. We also sold the stock within two weeks; we actually had to quit accepting money for the stock. We have been very blessed to have been able to attract and retain a great customer base that has allowed us to grow profitably on a consistent basis.

WN: From the time you started NobleBank to the present, what can you say is the biggest change in the way you interact/communicate with customers?

Anthony: I think the biggest change in the way we interact/communicate with our customers is the move to electronic communication, away from paper (letters) and telephone. Most customers now prefer to be notified electronically of any changes in products and services, new products, etc. Also, we rely on social media on an increasing level to communicate with customers and potential customers.

WN: What kind of effect has the digital world had on banking?

Anthony: With the growth of/ in the digital world, we are seeing fewer customers actually come into our offices. While some customers still prefer the face to face interaction with a banker, i.e., teller, loan officer, etc., many customers prefer to do their banking when it is convenient for them, which does not always line up with “banking hours.” I think this is a trend we will see continue to gain momentum, which means that banks are re-thinking how to best utilize their branch network and how to optimize their presence in the digital world.

WN: Out of everything available today, what would you say is the most effective marketing strategy for your industry?

Anthony: Being a fairly small community, at least for the near term, you still can’t beat one on one marketing. Marketing that is based on knowing your customers, creating and maintaining relationships that are mutually beneficial. Customers still like to have their banker call on them, visit with them and get to know them. However, increasingly, we are learning that digital marketing is the future, group texts, email blasts, effective use of social media, etc. have got to be utilized and utilized well.

WN: What is your opinion on the effects that smartphones and mobile technology have had on the way people handle their banking and finances?

Anthony: The advent of smartphones and mobile technology and the rapid pace at which they have been adopted is truly amazing. To think that when we started NobleBank & Trust in 2005, there was no such thing as an iPhone! A few people had Blackberry’s, but they were in the minority; now, I don’t know of anyone who doesn’t have a smartphone. Consumers can now handle virtually every banking transaction 24/7 from anywhere; unfortunately, (for bankers), they don’t have to go to a physical location to check

WN: Do you have any predictions for the future of banking? Do you see technology playing a bigger and bigger role as we move forward?

Anthony: I think the pace of change in banking, due to continued technological advances, is going to make the industry look at their strategies and business model closer than ever before. Banks, increasingly, can’t rely on customers coming to a branch to do their banking.
Banks, instead, are going to have to go where the customers are, and that is in the digital, electronic world, via smartphones, tablets, social media, etc. My biggest concern relative to competition is not so much with other banks, but the proliferation of fintech, or non-bank companies. These entities, which are not subject to the excessive regulations under which banks operate, are developing technology-based products and services, in various portions of the banking “space.”

There are electronic/digital/mobile products for payments, loans, deposits, investments, etc. If the banking industry does not keep pace with these fintech companies, I am concerned as to how we stay relevant as an industry long term. The continued advancements, adoption and marketing of technology-based banking products and services will be critical for the banking industry’s future.

The Takeaway

The financial world deals directly with people’s livelihoods—arguably more than any other industry. It’s central to how people store, save, invest, and spend their money. So when Anthony mentions one-on-one marketing, he’s dead on—and it doesn’t have to be separate from digital marketing. In fact, the digital age has brought about a stronger desire for authentic, trustworthy relationships between businesses and their customers. The ability to communicate directly AND remotely, combined with the ability to curate the message to the specific customer, provides a significant opportunity for financial institutions to connect with their client base.

Of course, you can’t market successfully if you aren’t communicating with your clients through the same channels. Adapting to the “pace of change”, as Anthony put it, is priority number one in this day and age—and it’s increasingly requiring banks and other financial entities to do the leg work. Thanks to all the options available, your customers have plenty of choices, which means YOU are the one who has to reach out. YOU have to accommodate the customer, not the other way around.

All in all, if you work in the financial world, then you (more than most) need to be ahead of the curve—adapting, innovating, and moving with the ever-changing current of the technological tide.

Anything to add? Share in the comments!