If there was ever a time to embrace the phrase, “change is the only constant,” now’s the time, and this was the year. By acknowledging, and adjusting to, the fast-moving developments — across so many areas directly impact bank marketing teams and product owners, financial service institutions better equip themselves to get and stay ahead in a challenging market. In order to best address the three key drivers of finserv success: risk management, regulatory compliance and customer experience, consider these three key tenets: Preparation matters. Processes need continuous improvement. Leveraging technology is crucial to keeping up.
Five rate changes made by the Federal Reserve throughout 2022, most recently at the conclusion of the December Federal Open Markets Committee (FOMC) meeting, bring both opportunity and obstacles for financial services institutions.
Here’s a portion of the FOMC news release issued on December 14 in conjunction with statements from Federal Reserve Chair Jerome Powell. https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a.htm
The Committee is highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
The obstacles, of course, are keeping up and often struggling to do so with systems that cannot keep pace with the rapidity of changing rates with legacy systems and outdated, error-prone processes. The opportunity, then, is clear: automate and innovate to accelerate.
As always at Naehas, we focus on solutions, on improving processes and on continuously answering the need for better offer management, disclosure management and customer experiences for the financial institutions large and small with whom we partner. It’s why the consistent theme of our executive discussions (like the one with Apogee), blogs, videos, webinars and case studies (available in our robust Resource Library on the Naehas website) focuses on doing disclosures better.
What are the primary gains driving ROI with automated disclosure management?
- Risk Management
- Customer Experience
Risk management is and will always be the top priority for banks. Automation provides auditability and traceability, eliminating risk and helping banks avoid costly fines. This is huge.
Customer experience continues to require a laser focus by banks of all sizes in today’s digital, fast-paced market. Facing competition from fintechs and digital currency sectors, driving retention and growth is a high-priority goal on the minds of bank marketers daily. It cannot be overstated that consistent disclosures across all channels support the needs of customers and regulators.
Leveraging innovative platform technology is a powerful tool and a marketing force multiplier. Third, and pivotal to maintaining that competitive edge in a fiercely competitive market today, is speed to market. With the handful of Prime Rate changes, and unknown rate changes in 2023, the Naehas team continues to communicate to its clients the immense ROI that comes from automated rules engines that allow teams to scale efficiency in order to get offers out faster and manage disclosures better. For those wondering where they stand in comparison to others in their finserv space, our benchmarking assessment is a valuable tool to help teams see more clearly where opportunities for improvement can evolve into measurable, positive change in the right direction moving into 2023.
Learning, growing and keeping up with technology is a marketing must in financial services, and we’re grateful for the opportunity we have to do that with our partners and our solutions teams every day.