News
Financial Planning key to differentiation in the banking business
Banks are struggling to differentiate themselves in what has become a relatively homologous industry, writes David Port in the article "Have it Your Way" for Bank Advisor magazine. However, they are learning to compete more effectively by implementing financial planning tools that accommodate the delivery of unique services.
EISI executive Kelly G. Brown, Senior Vice President of Strategic Business Development, provides some insight: "Out of the top 50 banks and institutions, literally every one of them has a slightly different method of delivering advice."
Many banks are opting to develop proprietary applications rather than purchase off-the-shelf planning tools. "They want to be able to capture their brand and make it consistent across every single market and aspect of their business," says Brown. "Proprietary software delivers that."
The initial investment for proprietary applications tends to be more, and the product support and maintenance costs are likely to exceed that of an off-the-shelf system. "We have found that for firms taking the proprietary route, the cost of software is a very small part of the overall investment," says Brown.
However, building brand identity seems to be the key to winning more business, so banks are regarding the extra cost as an investment.
Learn more about the considerations for proprietary and off-the-shelf planning systems from experienced industry executives. Read the article in Bank Advisor magazine.
