US vs. THEM

In case you haven’t noticed, the financial markets don’t care much for our current administration’s handling of the economy. Now, it appears that the government may have a larger role in running the ‘too big to fail’ banks.

While a few in the media have noticed that there is a wide gulf between the events occurring in the money center banks and the community banking world, the average American has no concept of how different WE are from THEM. Most media articles talk about “banks” without differentiating between mortgage banks, investment banks, large commercial banks and community banks.

For years, community bankers have operated under the radar -- invisible to Washington, invisible to Wall Street and invisible to many consumers. Let me repeat for emphasis: invisible to many consumers. While small town America knows their local banker (he’s the only game in town), the typical man on the street in most metropolitan areas knows only Chase, Capital One, Regions or the other megabank with branches on every corner.

This environment provides a once-in-a-banking-lifetime opportunity to change that. As a champion of community banking, I challenge each community banker within reach of this post to step up and introduce yourself to your community in one or more of the following ways:

1. Help them to understand how we got in this mess. Generally, the media is doing a terrible job of communicating the whole story; instead, stories lurch from one lurid headline to another without any attempt to gain perspective or understanding.

2. Tell them your bank’s story (how you aren’t like Citi, who controls the decisions in your bank, who your board members are). Help people see the difference between US and THEM.

3. Offer assistance. Some of your neighbors are feeling direct or indirect economic pain. Others fear that they are next. As community bankers, we should help those who are financially wounded but not unsalvageable. Keep in mind that some of your own shareholders and employees may be in need of help.

4. Don’t stay in the foxhole too long. While lending to anyone who walks in the door isn’t usually a good idea (that’s why you aren’t in the trouble some banks are in), you should not draw back in fear and exacerbate the problem. Most of you have money to lend and no other attractive investment options. Find people who meet the 5 C’s of Credit and then do what you do best: lend money.

5. Make your customers, old and new, your marketing force. Tell them your story (see #1 & 2 above) and ask them to repeat it. Take such good care of them (see #3 and 4) that they can’t help but repeat what has become THEIR story about YOU.

Another thought: If your employees aren’t already your biggest fans and best marketing force, address that problem immediately.

If you would like help presenting your story to your board, your employees or your community, we can help. Send me an email and I’ll share some thoughts on how it can be done.