Brand Recognition

Research finds the three main drivers of consumer brand equity are awareness (recognition), associated qualities (BMW = quality German engineering), and loyalty (I love my Apple).  Recognition alone isn't enough.  After all, the largest banks have recognizable brands, but what they signify is a different question.  Consistently high quality client experiences.  All the image ads in the world will not overcome a lousy experience when a potential client engages with the staff.  For that reason, a bank's image is almost entirely dependent upon its employees.  We think our staff is client-centric and that they create a lasting emotional impression of competence and concern.

Better by the Growler

Here's a continuation of my prior blog post.

Most businesses would love to see the same kind of percentage business increase that small brewers achieved over the last year.  Craft brewers rely upon there being demand for a unique, high quality product that is local in its business focus as well as in its image.  The same should follow for small businesses, but the brand recognition of the large businesses often overwhelms a smaller organization's attributes.

More later.

Craft Beer and Banks

The other day a German fellow at a beer festival in Bavaria set a record for transporting beer mugs, carrying 27 one-liter beer glasses for 40 meters.  The beer alone would weigh almost 60 pounds! But the point of this blog is that craft breweries are successful.  The sale of craft beers increased by more than 17% last year vs big market brands at 2%.  Do you suppose big market brands will attempt to make a higher quality product to capitalize on the trend that Americans are drinking less but buying higher quality?  More later........

How High Will They Go?

All indications from the Fed still point to policy tightening and a rising rate environment sometime around mid-2015.  How high rates will go remains a question though.  It could be we are approaching yet another time of change and recent market volatility is simply an expression of concern.  

Vote Vote Vote

A week from today some significant decisions, by you the voter, will be made.  Be sure to either vote early or be at your polling place on November 4!

Early Voting

I usually am one of the first voters at my voting site each election.  But this year I did something new....  I voted early yesterday.  The only downfall is that if you make an error on your ballot, it will be a wasted vote.  Whereas, voting on election day your ballot would normally be rejected if an error is made.

Cybersecurity

I cannot say it too strongly:  you need to protect yourself from cyber attacks!  The easiest way to do this is to do away with weak passwords that are easy to guess or can be easily obtained in cyberspace by would-be criminals.

Good Year for the Bank

I don't often write specifically about Oak Bank but thought a couple comments about our year is timely.  There was some plans of moving to a new location in Fitchburg.  Those plans are on hold right now.  Financially, we are pleased with our results through the first nine months of 2014.  Loan demand is still a little weak, but improving. 

Economy

While there does appear to be any intent of the Federal Reserve to raise interest rates, geo-political situations could effect interest rate levels.  And the one that seems most serious right now is the Russia - Ukraine problem. 

How Blessed We Are

When you consider all the turmoil and killing in the world, you realize how blessed we are to live in this country!  When you hear about Ebola, you realize how fortunate you are to live in this country!  When  you hear about the children starving in various parts of the world, you should realize how fortunate we are.  Let us never take for granted our blessings!

Mystert

How tragic the two murders in Fitchburg.  How can we know the pain the families are going through and the long-term pain the six children will have to live with.  While I believe everything happens for a reason, just can't figure out why this has to happen. 

Vote

Hopefully you all voted yesterday.  Despite what many felt was not an important election, the consequences of many of the races may prove very important.  I was the third person to vote in my ward.  As I was standing in line I had conversation with voters from both parties.   I sensed a feeling that we are tired of the polarization that seems to exist in politics today.  Whatever happened to the ability to reach a consensus through compromise?

Favre's Number

I am pleased to hear the Packers are planning to retire Brett Favre's number "5" next year.  Really wish it could have been this year but another year may get rid of a few boo birds.

Trivia

The most obsolete job in America is the milkman - what is the second most obsolete?  The elevator operator! 

Baby Boomers

Pew Research reports Baby Boomers started turning 65 years old in 2011 and every day for the next 16 years about 10,000 more will reach that threshold.  That means in 16 years about 20% of the population will be 65 years old or older! 

More on Credit Cards

A study on habits of the Millennial generation (ages 19-29) also indicated that family members were cited as a significant influence, with 49% reporting that their parents shaped their views on money matters.  54% reported going to their banks for financial advice.  This is interesting given about 90% of them bank online or on their smartphone.

More on Credit Card Debt

TD Bank did a study focusing on the habits of the Millennial generation (ages 19 - 29 yrs) and found some interesting results.  This group has entered the workforce in the worst of economic times and as such seems to have tendencies towards financial conservatism quite similar to people who grew up in the Great Depression.  Job prospects have been difficult for this group at best and financial markets were roiled within their formative years.  Many also carry high levels of student debt.  More later.......

Credit Card Debt

The average credit card debt is $28,000.  The average number of cards per person is 2.2the average utilization is about 30%.   The age group carrying the highest average balance per card and the highest number of cards is the baby boomers (ages of 47-to 65 yrs.), many of whom are both sending kids to college and caring for elderly parents.  More later......

Smart Phones

Predictably, there are more urban mobile banking users (64% in cities versus 60% in suburbs and 43% of rural dwellers.  58% of Americans have a smartphone and the highest use is by those under age 39.  Further, almost 50% of people between ages 50 and 64 are smartphone users.

Technology Change

Another amazing technological change over a short time is the use of broadband in homes.  When the Pew Internet Project began studying this in 2000 only 3% of homes had broadband, and now 70% of homes have broadband and internet use is above 80%, regardless of whether one is an urban or rural dweller.