06/29/2010
Walk, Run, and Climb
We’ve been on a social media kick around here since reading about its success in the community banking sector.
Looking locally for advice, we read up on some digital branding advice via Dave Allen of North.
Allen makes a great point that social media isn’t the next high-horse technological breakthrough to use to ride off toward success.
It’s simply a tool that, when used properly, can shorten the distance between your business and your consumers.
In the small balance commercial mortgage business, not only is there a long path that must be traversed, but there’s also a giant wall called covenants, lender conditions, borrower financial, and deal packages to climb.
As social media continues to permeate the financial industry, how does it address not only the shortening of the conversational path, but also the scaling of the deal scenario wall?
Thoughts?
06/24/2010
The Good Fight: Community Banks Utilizing Social Media to Encourage Customers
We talk about it all of the time in our marketing meetings.
“How can we utilize all of this social media?”
We’ve found out that the more appropriate question to ask is, “which social media are right for us?”
That has led to some interesting projects, such as reaching out to the commercial mortgage community via the Become a Superstar Broker blog.
Brett King, author of Bank 2.0, wrote a fascinating post on community banks utilizing social media. Resonant issues include how to adapt one of the oldest industries known to civilization to optimally using the vast variety of new media.
According to parts of King’s article, community banks have fed off of the negative attitudes towards “big banks,” rallying locals behind their flag using social media. This means loyalty. It means deposits.
If community bank guerrilla tactics will evolve and turn into social media tactics that gain the trust of consumers, new and old, without the cost of anyone’s reputation.
It’s happening across industries. It’ll eventually get here. Are you ready?
06/22/2010
Could Micro-financing Firms Be a Long-Term Threat to Small Balance Private Money?
CDFI’s seem scary in the long-term for small private money.
These Community Development Financial Institutions are playing the role of benefactor while banks of all levels turn down small business requests for loans.
These loans range from $30,000 to $200,000 in most cases.
Let’s face it—this is more than capital. It’s also a priceless amount of trust, value, and authority. These three elements become harder to define as banks remain reluctant to lend, yet continue with some notorious behaviors.
It’s time for some conjecture. Let’s say that these CDFI’s gain sizeable lending capabilities.
When it’s time for their former start-up clients to require harder money products, which firm is going to be able to have a smoother conversation about needing an 8% to n% and higher loan?
Will it be your private money firm? Will it be the people who helped them out in the beginning, and also, through what could be the hardest time for their business?
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