In an effort to call the bank to the attention of the public and create a pleasant, relaxing atmosphere where shoppers and business- people could pause to relax at noontime, a large metropolitan savings bank began offering concerts in the lobby from noon until two o'clock. It was an experiment that proved so popular that the concerts were scheduled on a permanent basis.
"Is this banking?" some people were heard to ask as they stood listening to a piece played by a string quartet. Banks were traditionally thought of as conservative businesses that did not have to call attention to themselves. Everyone needed a bank, hence all a banker had to do was open the doors and wait for the customers to arrive.
This is no longer the case, however. As the number of banking institutions grows, the competition becomes keener and managements must become increasingly resourceful to attract and hold new business. The need to obtain large amounts of capital has spawned the great giveaway plans that are so popular in many cities, especially among money-hungry savings banks. Just for opening an account a new depositor is offered a wide choice of gifts. The larger the deposit the more valuable the gifts. Thus in one bank an initial deposit of just $250 could earn you a tote bag, a spice rack, a lamp, or a folding chair, whereas $5,000 would give you a clock radio, a Polaroid camera, a toaster oven, or an electric coffee pot. This is better than buying sweepstake tickets or betting on horses—your money is in a safe place, you have your prize, and you are earning interest besides.
"Who Will Give You $50 for $45?" read the caption headline under a picture showing a crowd of elderly people lined up before a bank. The answer was that the Sterling National Bank and Trust Company would—if you were over fifty and one of the first one hundred people waiting outside the bank's main office. The giveaway helped celebrate the bank's fiftieth anniversary.
Meanwhile, a rural bank in New Hampshire
Publicity and Advertising for the Banking Industry
This kind of publicity and advertising is not typical of all banks; most advertising is dignified because the majority of bankers want to create the impression that their institutions are not fly-by-night or frivolous places to do business. One problem bankers have had ever since the first bank opened a few thousand years ago is that many are very wealthy individuals. Because cartoonists have long depicted bankers as portly, well-dressed, prosperous men, banks still have an image problem, and they want people to think well of them. That is why their public relations programs are so important.
"What is public relations?" you might ask. Simply stated we might say that public relations is dealing successfully with people, with the emphasis on an activity that is beneficial to the public or that endeavors to gain the good will and understanding of the public. Providing concerts in a lobby, giving away money, or advertising a bill-payer service are not examples of public relations, but rather of publicity—calling attention to oneself.
Banks are creating good public relations when they support nonprofit public broadcasting or television, help provide certain community services in poor neighborhoods, contribute to college scholarship programs, encourage their employees to work for charities, or undertake a host of other unselfish programs all designed to gain good will or the understanding of the public. The ways that banks do this are limited only by the imagination of those who are responsible for such programs.
Competition and Innovation
Competition, attracting new capital, creating a good image, finding new customers, providing excellent service, maintaining good employee relations—these are only a few of the problems that every bank must face and that make banking such a fascinating and challenging business. A number of innovations are appearing that promise to bring changes in the business as well as exciting new opportunities for those seeking a banking career.
• Some banks are beginning to sell merchandise through catalogs to compete with Sears and other retailers that have become competitive with an increasingly wide range of financial services.
• Home banking is becoming popular with customers who have computer terminals and can use them to review the status of their accounts, pay most of their bills, switch money from one account to another, and communicate with the bank.
• Banks offer various computer services to outside businesses.
• Interstate banking will spread throughout the country as banks look for expansion opportunities.
• Global finance is a reality; electronic transfers of funds occur daily across international boundaries—multinational business requires multinational banking.
• Banks are buying established savings and loan, credit, and insurance operations to expand their services
• Some banks are acting as discount stockbrokers, selling and buying securities for their customers.
• Chemical Bank in New York City la Carte " mobile teller stations into large business offices. Employees can do all their banking at the teller station.
• Some banks are sending specially trained employees out to solicit new business, as well as call on regular customers in their homes and service their accounts right in their living rooms.
• Savings and loan associations and savings banks that used to invest most of their deposits in mortgages are seeking more lucrative investments for their funds.
• Larger banks are selling services to smaller institutions.
• Numerous banks are expanding their "private banking" services for wealthy customers who keep large balances. These preferred customers receive tax, investment, and estate planning help; have access to private offices and senior officers; can use special telephone lines; and enjoy other privileges.
Banking is indeed on the march, open to new ideas, and seeking people who can accept the challenge of change!
