Client Engagement In A Digital-First Banking World
January 16, 2024
In my four decades in banking, I have witnessed a transition whereby clients can bank without setting foot in a branch. Beginning in the 1980’s with the introduction of ATMs, to the convenience of direct deposit, online banking and mobile banking, the industry has made banking convenient for everyone. The double-edged sword of these innovations is the reduction in face-to-face time with our clients. The changes have left us with the burning question of how we engage with them in this paradigm of remote banking. Recognizing that engagement is the key to building a bond and subsequently loyalty in the banking relationship, all bankers need to find an answer to this question.
When I think about how we can truly engage a client I go back to my background in psychology to understand what makes an individual feel satisfied. I am talking about everything in our lives from personal relationships to job satisfaction. If we apply the theory of the Hierarchy of Needs from Abraham Maslow, we can create a pyramid of what we can do as bankers to satisfy those needs. Maslow calls the top of his pyramid Self-Actualization, which I will define in this blog as a fully engaged client.
At the bottom of the pyramid are those basic needs in life which in banking would be an account I can keep my money, where I can pay my bills and have convenient access to my funds when needed. The second level is Safety which means a well-capitalized bank and having accounts insured through the FDIC. While you need a strong base to build upon, I feel that many financial institutions fail to go much further then this point. As banking products have become commodities, this failure leads to clients jumping from bank to bank in search of a little extra interest on their deposits.
Good financial institutions do well in the next two levels of the pyramid. The first is a sense of belonging. At Kearny Bank we pride ourselves on knowing our clients and our communities. Many people are likely familiar with the character Norm from the TV show Cheers, who always visited his favorite bar with a smile ready to chat with his friends and solve one another’s problems. In some ways, that is what we attempt to create in our branches. We greet clients by name and engage them in conversation to help us uncover needs and provide matching solutions.
The next level defined by Maslow is Esteem. He uses words like confidence and status when describing this level. Putting this into context of banking, having a client that is confident in his or her financial institution means that when we recommend a product or service, they will view us as a trusted advisor that has their best interests in mind. Taking a client-specific approach and not just pushing a product that benefits the bank must be our modus operandi in all of our interactions. We can give clients a sense of status by making them feel just how much we value each of their important relationships.
To achieve greatness and reach the peak of having a fully engaged client is the final step. Helping clients to understand that achieving their individual idea of prosperity is tied directly to their banking relationship. We are their go-to for basic checking needs, short- and long-term savings, borrowing and retirement planning. The bank that can remove the burden of these financial worries from their clients has built a strong loyalty. Achieving this level of client engagement allows them to focus on other aspects of their life, having that sense of self-fulfillment that their financial needs are well satisfied because of their bank.
If my team and I can help our clients realize that sense of prosperity, I know we’ll have done a good job.
By Richard Halter, VP / Regional Sales and Development Manager
About Rich:
Richard Halter is a VP / Regional Sales and Development Manager for Kearny Bank. He is responsible for leading the branches in the Southern New Jersey Market within the Retail Bank network. He provides guidance and coaching in coordinating the sales activities for his region while upholding the core values of Kearny Bank.
Richard has over 35 years of experience in business development, branch management and across multiple disciplines in the lending space. He joined Kearny Bank in 2017 and has expanded the branch deposit base in his market significantly over the years. Richard has held SVP Chief Retail and Chief Lending Officer positions prior to joining Kearny Bank.
Richard is married with three children and resides in Monmouth County New Jersey. He has been active in local charities and enjoyed coaching his children’s sports teams when they were young. Richard is a proud member of a charitable organization (The Friendly Sons of the Shillelagh) in Belmar since 2006 where he has held several Executive positions.
Contact Rich today.