ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Retail and Marketing

The Omni-Channel Strategy

November 4, 2015
Reading Time: 3 mins read

By a bipartisan 16-4 vote, the Senate Judiciary Committee today approved the PATENT Act (S. 1137), which would seek to reduce abuse of the patent system through vaguely worded demand letters sent to businesses by patent trolls.

By Jim Neckopulos

As technology continues to have an impact on all aspects of our lives, banks must continue to develop and evolve their strategies for customer interaction and experience. In addition, the distinction for small businesses between their personal and commercial activities is increasingly diminishing.

A key reason for this development is that individuals and businesses want an enhanced capability for “anytime, anywhere” access to get information, conduct transactions and interact with other parties. And, given the fine line between small business personal and commercial activities, this access needs to span and integrate both sets of activities.

As a result, banks must adopt or develop omni-channel strategies that both facilitate this need for existing customers and becomes part of their ability to find and attract new customers.

While the concept of an omni-channel capability has been around for several years, it has gained increased focus over the last few years for three key reasons:

  • The rapid growth and adoption of mobile and digital technology.
  • The need to reduce operating costs due to compressed margins.
  • The role of social media to influence opinion.

For banks, particularly those that serve small businesses, these considerations are critical to their ability to succeed and grow their market share.

Remain relevant and meet customer desires      

Over the past several years, our lives have been dramatically changed by mobile and digital technology. The result is that both individuals and businesses expect all activities to be supported by technology that is intuitive, fast and safe.

Banks must understand and accommodate the desire of their customers to interact with them no differently than they can other businesses. Therefore, banks need to support customer needs related to this channel and how to support other “traditional” channels to include  branches, ATMs, telephone and on-line banking. This poses a key dilemma for each bank: “How much should each bank invest of these channels?” This approach also requires a development of strategy based on desired and measurable outcomes.

For banks focused on small businesses, an omni-channel strategy must address several other considerations: a seamless ability to interact across their business and personal accounts along with a clear understanding of channel preferences based on the nature of the interaction or the products or services accessed.

Rebalance channel blend and investments      

The challenge posed above is made even more difficult given today’s interest environment resulting in some of the lowest margins/spreads in banking in years. The squeeze on profitability requires banks to be even more diligent as they develop or update their omni-channel strategies. The trade-off is what return on investment is needed to justify further investments in any or all of these channels to support a bank’s overall strategy.

Related to small businesses specifically, the considerations are both defensive—to maintain market share—and offensive, in terms of growth via new customer acquisition. It is therefore important to understand the cost and benefit of each channel and to periodically review the omni-channel strategy to determine if and when to “rebalance” these investments.

Engage and influence customers and prospects more effectively    

A third factor that can significantly impact a bank’s ability to keep and attract customers is their social standing. For many years, banks have relied on word of mouth or the referrals of advisers such as CPAs and lawyers to acquire new customers.

While these sources still are important, social media now also influences how customers and potential customer think about their relationships—both on a personal and business level. Customers share their thoughts and feelings, good and bad, with postings on Facebook and other social media sites. This media can be enormously helpful in providing insights into how customers want to interact with their bank(s), who they relate to in terms of a “community” and the strength of their affinity to this group and what factors would might be helpful to finding and attracting other businesses with similar values.

The last point is critical to both being more efficient and effective in finding new customers, particularly those who may be looking for a new banking relationship to serve both their personal and business needs.

The payoff for a well-developed omni-channel strategy  

As indicated above, the rapid growth of and adoption mobile and digital technology, the need to reduce operating costs due to compressed margins and the role of social media to influence opinion all point to the need for a omni-channel strategy. Moreover, for those banks looking to grow their small-business market share, a focused omni-channel strategy can facilitate this objective in many ways to include finding potential new customers more efficiently and with a greater likelihood of conversion based on shared values and affinity relationships.

The bottom line is successful growth in today’s anywhere/anytime environment requires development and periodic rebalancing of well-developed omni-channel strategy.

ADVERTISEMENT

 

Jim Neckopulos is an executive director in Ernst & Young’s (EY) Banking Practice and is based in San Francisco.

John Hansen, who is a senior manager in Ernst & Young’s (EY) Financial Services Strategy Practice, San Francisco, contributed to the article.

Tags: Anytime bankingCustomer experience
ShareTweetPin

Related Posts

Podcast: Old National’s Jim Ryan on the things that really matter

Podcast: Old National’s Jim Ryan on the things that really matter

ABA Banking Journal Podcast
June 12, 2025

Jim Ryan has led Old National Bank to 250% asset growth. On the podcast, the ABA American Bankers Council chair discusses the bank's growing profile and footprint, his views on deposit insurance reform and the experience of leading...

Bank community engagement: Yes, you can help bank veterans

Bank community engagement: Yes, you can help bank veterans

Retail and Marketing
June 9, 2025

AMBA partners with the ABA Foundation to recruit banks to provide our nation’s veterans access to safe, reliable and flexible financial products and services.

FHFA finalizes strategic plan for 2022-2026

Marketing Money Podcast: Why leadership matters more than likes

Retail and Marketing
June 6, 2025

For bank marketers, the value of being strategic is great.

Looking for trouble?

Podcast: What bankers need to know about ‘First Amendment audits’

ABA Banking Journal Podcast
June 5, 2025

"First Amendment auditors" have long tried to provoke public officials into stopping them from recording in public settings. Now, some auditors are targeting banks.

ABA: Proposed quality control rule for AVMs would overburden banks

Bank survey: Uncertainty weighing on prospective homebuyers

Community Banking
June 4, 2025

Roughly 60% of current homeowners and prospective homebuyers are uncertain whether now is a good time to buy a home, up from 48% two years ago, according to a recent survey by Bank of America.

Looking for trouble?

Looking for trouble?

Compliance and Risk
June 4, 2025

So-called ‘First Amendment auditors’ target bank employees with provocative filming. Here are tips on responding.

NEWSBYTES

Banking agencies seek public comment on strategies to combat payments fraud

June 16, 2025

ABA urges CFPB to preserve streamlined mortgage relief option

June 16, 2025

Illinois pushes back implementation date for state interchange fee law

June 16, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.