Creating Profitable Relationships AACUC

Creating Profitable RelationshipsGabe Krajicek

CEO

© 2016 Kasasa. All rights reserved. Not for distribution.

Here’s How We Help

Younger, Profitable, Highly Engaged Consumers

Balance Sheet Optimization

Profitable Deposit Growth

Our clients deploy Kasasa to complement their strategies and achieve their goals


Our Philosophy: Good ProfitsGood Profits are the Only Sustainable Path to Success

Consumer Benefits FI Benefits

Good Profits

Sta te o f The Indus t ry

Home


Consumer Challenge

Oh, I want to buy that

now!

Ah! Another

fee

Let me compare

rates

Need to pay my

bills

Difficult To Acquire Engaged, Young

Consumers

Consumer Expectations For A

Seamless, Meaningful Experience

© 2015 BancVue. All rights reserved. Not for distribution.

Challenging Mega Competition

Large Marketing Budgets

Product Innovation

Research Department

Dedicated Resources

Marketing Expertise

Training Programs

Difficult for community banks to compete


Banking Product Innovation


Acquisition Opportunity!Consumers would rather bank with a community financial institution, yet they don’t

Source: Consumer Banking Insights Study, Harris Interactive, 2013


Product FirstIf Consumers Prefer the Service of CUs, Why Don’t They Bank There?

Source: Consumer Banking Insights Study, Harris Interactive, 2013

Consumers Love Your

Service, But Doubt

Your Products


Nearly 40% Of MillennialsDon’t Believe You Have The Products They Need

Source: Consumer Banking Insights Study 2014

“The big banks have

money to invest in

technology and IT

departments and people...”

Let ’s Ta lk About Products


Offer Products That Consumers Want

Free, No Fees High Interest

Rewards Cash Back


More Important to Gen Y2x


Kasasa Cash

Free Checking

Pays Rewards of

• High Interest

• ATM Fee Refunds

No minimum balance

(If Qualification Criteria are met)


Typical Kasasa Cash Structure

QUALIFICATION CRITERIAReceive e-Statements

Access Online Banking

10 Debit card Transactions


Your Member and Your CU Win Together

Total Balances $52,279,821

Promoted Interest Rate 2.0%

Interest Paid ($52,280)

Cost of Funds 1.2%

Non-Interest Expense ($7,832)

Non-Interest Revenue $119,777

Cost of Deposits (Month) $59,665

Annual Marginal Cash Flow $715,982

Effective Cost of Deposits (1.39%)


Free Checking Kasasa

Direct Deposit/ACH ~60% 84%

E-Statement ~19% 81%

Online Banking ~32% 81%

Debit Card ~45% 86%

Influence Behaviors To Reduce Expenses

The Power o f Go ld Labe l ing

Home


Win The War

Our MissionThis is the Only Thing That Matters at Kasasa


I’m frustrated and

exhausted with banking.

I just can’t deal with this

stuff anymore.

Consumer Mindset

1. Offer the products (both online and offline)

2. Offer the personal service

3. Give me a reason to believe

Steps:


Marketing Scale

$60MM


The Power of Scale

SMALL

BANK

CREDIT

UNION B

CREDIT

UNION A


Coopetition Levels The Playing Field


The Power of Scale

SMALL

BANK

CREDIT

UNION B

CREDIT

UNION A


The Average American Is

Exposed To 5,000 Marketing

Messages A Day.

How Do You Get Them To

Hear Yours?

Source: Yankelovich Partners Study


The Power Of Scale


88%Start online when searching

for a banking product


The Power Of A BrandStarbucks & Retailers


Total DDAs Per Month

Free Checking

+20% REWARDChecking

Results


New BV Accounts Per Month

REWARDChecking

+60% Kasasa

Results

KASASA Execut ion

Home

Start with the Best

Consumers


Start with the Best Customers

“Successful Mid-Lifers”Young

“Accumulating Families”Family

“Conservative Matures”Mature

Demo: Singles and couples in their 30s

and 40s with executive jobs. College

educated households who are career

minded and seek social status. Located

in the Second Cities, Exurbs and

Suburbs.

Ave. HH Income: $82,255

Demo: Families living in the Second City

and Suburban areas. This is the home of

the legendary “Soccer Moms” with

activities heavily geared to the kids and

family functions. Take advantage of their

surroundings and do a lot of activities

outdoors.


Demo: Empty Nesting Couples over the

age of 55. Living comfortably in older

homes in the Second City and older

Suburban areas. Enjoy routine-based,

upper-middle class lifestyles.



Start with the Best Consumers UNDERSTANDING$YOUR$BEST$$$$$$$PROSPECTIVE$CUSTOMERS$

$$11!

BancVue$

© 2016 Kasasa by BancVue. All rights reserved. Not for distribution.

Get Noticed

Grab people’s attention with

comprehensive, consumer

research–based messaging

designed to draw in your

target market.


Consumers who don’t have an account

with a credit union say its because they

haven’t thought about it, or were

unaware that the credit union existed


4 10out of


Think Omni-Channel

Traditional Marketing

Search Engine Marketing

PR

Targeted 1:1 Direct Mail and e-Mail Programs

Digital Retargeting

Integrated Website Promotions

Incentive-Base Promotions

Social Media Promotions

Grassroots Events Planning


Good Looking Creative is Not the Point


Getting Noticed and Remembered is the Goal!

60%Appeal Seek Out Info

Consider

Opening

Account

Uniqueness Tell OthersCommunicates

Main Message

Pass It On Total

Ask For Kasasa

62%

65%

45%

48%

32%

33%

48%

63%

52%

57%

32%

36%


Introduce Yourself

Make it easy for people to

learn about who you are,

what you’re about, and what

you can do for them.


88%Start online when searching

for a banking product


Channel Used To Open Accounts

Javelin August 2015 Digital Banking Report


Consumer Preference

Javelin August 2015 Digital Banking Report

70% of consumers who plan to apply for

a checking in 2016 would prefer to do so

in digital channels.


Responsive Design


Build Relationships

Compel people to action —

in a way that delivers value

to account holders.


Strengthen

Relationships

Connect account holders with

information, products and

services that they care about at

the moment that it is the most

valuable to them.


Of consumers agree that credit unions have

better personal service than the big

national banks.64%



Consumer Are Shopping Around For Other Services

Auto Loans

Brokerage Accounts

Home Mortgage

70%

61%

52%

Source: Banking Reshaped by the Customer. Accenture Study, 2015


Consumers Are Open To Receiving More

Value-Add Services

Proactive product

recommendations52%

Source: Banking Reshaped by the Customer. Accenture Study, 2015


Right Consumer, Product, Time = Good ROI

58

28

9 8 7 6

16

138

19 23 22

36 38

95

-

25

50

75

100

125

Total Deposit Kasasa Checking Money Market IRA CD Savings Total Loan

Up-sell Cross-sell

• 6,300 Mailed

• 149 Deposits for $1.8 Million

• 111 Loans totaling $2.4 Million


Inspire Fandom

Become a topic of conversation online,

around the water cooler, and at the dinner

table and get the profit that comes with it.


90%

Positive Experiences For Ongoing Acquisition

Source: PWC Insights for the US Retail Industry 2011

of consumers are willing to

recommend after a

positive experience


Consider 2 friends, Glen and Marie

Glen has a Kasasa account with you.

Marie banks with a megabank.


Glen gets his unique link and clicks to

share it on Facebook.


Marie clicks Glen’s link and lands on

your site. She learns about Kasasa.


Marie enters her email and decides to

open her Kasasa account online.


Marie and Glen are both emailed a

$50 Amazon.com Gift Card!


Now, Glen and Marie both Kasasa!

Next time you send out a Share invitation,

both Glen and Marie will be included.

For Copy o f Presenta t ion :

Text Your

Name, F I , & Emai l Address to :

615 .498.3653

or Emai l :

Gabr ie [email protected]

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Creating Profitable Relationships AACUC

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Transcript of Creating Profitable Relationships AACUC