Saturday, August 30, 2008
In the battle to win over customers and boost retail deposits, banks have upgraded their product promotions and specials.
In other words, they're tossing out the toasters and shipping in the iPods.
"Sometimes people need that incentive," said David Hanrahan, president and chief executive of Capital Bank of New Jersey in Vineland.
Hanrahan was on hand Friday for the bank's "Endless Summer Friday" promotion, during which the name of a new account holder was drawn randomly for a special prize. The bank has been raffling off electronic goods since the beginning of the year. This was the final month of the promotion.
For Ocean City Home Bank, one deal has been handing out Wawa gift cards for at least $10 each time current customers refer others as new business for the bank.
Given the economy, the thought behind the gift cards was simple: "It can be used for gas," said Tricia Ciliberto, the bank's vice president of marketing.
Community banks aren't the only financial institutions that have been tailoring their giveaways to the times.
Cherry Hill-based Commerce Bank is offering iPod shuffles in target markets in Washington, D.C., and Florida when customers open checking accounts with direct deposit.
Earlier this year, customers of PNC Bank were eligible to win a Toyota Prius Hybrid when opening a personal or business checking account with a Visa check card.
PNC Bank spokesman Ed Kozmor said the bank's promotions - which have also included Pontiac G6s, flat-panel highdefinition TVs and iPods - are effective ways to "attract and retain the customers so we can build a relationship."
Julie Ruth, an associate professor of marketing at Rutgers University in Camden, said the question for banks is this: "How do you say to a 20-year-old or to a 30-year-old you're relevant?"
The lifeblood for banks wanting to grow their customer base is exactly that younger demographic looking to set down financial roots, she added.
"You want to use this extra item that draws attention to where you wouldn't have it otherwise," Ruth said. "And it makes something that's been around forever - banking - seem fresh and new and interesting."
But offering swag doesn't guarantee new customers - or retaining current ones.
Bank officials say it's still the little things such as giving rebates for ATM surcharges or providing extended service hours that are appealing.
"We don't really use (promotions) to try and buy business," said Ciliberto, of Ocean City Home Bank. "We're looking to build a long-term relationship with our customers."
Vineland resident Neolita Dijamco was looking for a better banking experience when she left her bank for Capital Bank of New Jersey, which opened in early 2007. To her delight, she won a Compaq laptop during a February prize drawing.
But the potential to win something didn't factor into her choosing the bank. She said it was about age-old customer service: "They're very accommodating to people. That's what's good."
Sunday, August 03, 2008
At a news conference in the Delaware County Council chambers, executives of Citizens Bank and council Chairman Linda Cartisano presented the annual report on the bank's $142 million community initiative that supports the county's Revitalization Program, noting that for the third consecutive year the bank's program has exceeded its goals.
Ralph Cicalese, Citizens Bank's market executive for Delaware County, reported that the program's goal for the third year was to provide $28.4 million in loans and program support. An analysis of the annual results shows that $40.1 million was delivered in loans and grants for projects and programs that foster affordable housing, home improvement, economic development, financial literacy, small business and commercial development.
"To exceed our goals by nearly $12 million is a sign that the program is working," Cicalese said. "Given the economic conditions, this program is more important than ever. As always, we thank the Delaware County Council for its unwavering commitment in making the program a success, along with the grassroots community agencies that have partnered with us as we revitalize the county's first-generation communities."
Cartisano spoke of the partnership between the bank and the county in noting that the program has been a "rousing" success largely in part to the tireless work of Citizens Bank.
"We have a lot of work still left to do, but we look forward to continuing this rewarding partnership and the revitalization of our municipalities in need of a helping hand," Cartisano said.
Figures presented at the news conference include $6.2 million in small business loans, $334,000 in commercial real estate loans and $24.4 million in other consumer and business loans throughout the five planning regions designated under the Delaware County Revitalization Program, as well as other low-to-moderate income census tracks in the county.
Citizens Bank Foundation also provided $85,000 in grants and program support for numerous projects, including a fuel assistance program offered through the Community Action Agency that helped 100 residents, and Volunteer Income Tax Assistance programs with PathwaysPA. In 2007, the foundation also provided funding to the Widener University Small Business Development Center and Community Capital Works/Chester Microenterprise Partnership to open a business training center in Upper Darby. The agencies have offered training, technical assistance and counseling to more than 100 local business owners and aspiring business owners from Renaissance Planning Area Five, assisting clients from Clifton Heights, Upper Darby, Haverford, Lansdowne and Yeadon.
Pete Ricci of Upper Darby, a small business owner, told those in the council chambers of the support and marketing services he received from the SBDC for his business called Solstice Media.
"Not enough people know the resources that are out there," Ricci said, adding that it was much more convenient for him to go to the business training center in Upper Darby rather than having to travel to the Widener campus in Chester.
The partnership, which was announced in June 2005, represents the largest community investment initiative Citizens Bank has made in the county in support of the revitalization efforts. The program has provided a total of $117.2 million in loans, investments and program support for the program. The new 14-home development in Marcus Hook is part of the initiative.
"The Revitalization Program in Delaware County is working because of the partnership we've developed," Cicalese said.
