Question

Much of the intense competition in the financial services industry comes from pro- ducts that are the most standardized, such as mortgages, automobile loans, money market accounts, savings accounts, and so on. These products will offer very low profit margins. If you managed a small community bank today, devise a strategy to compete in this environment.

Answer 1

Strategy for small community bank:

1. Offering unique financial product: To survive in highly competitive market, this ‘Unique Offering’ is necessary. By market research, we have to understand the need of customers and then create a financial product according to that.

2.Relationship Management: It is obvious that in a service based industry like this, relationship with the customers is the key. So, we have to focus in building a good relationship with customers.

3.Value Proposition: It is a popular way to get in the mind of the customers. We should be good at any particular segment and everybody in the market should know our company for the same.

4.Awareness:Marketng is always being the key of any business and in this scenario it should at the maximum level. The equation is simple here, more number of people know about the business, the more customers we will get.