Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

42) #ByTheBook: Purpose Can Power Your Financial Brand Internally

ABOUT THIS EPISODE

Purpose can power your financial brand. But your purpose is fragile if it's not backed up by process and by proof.

On this episode of Banking on Digital Growth, I continued our earlier conversation about the idea of banking on purpose. This time, we talked about the internal power of purpose.

I discussed:

  • Why purpose-driven thinking is key for internal stakeholders
  • The four elements of a purpose statement
  • The story of Aspiration, a purpose-driven financial brand that began in 2015 and has raised $100 million in capital

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

But you're listening to banking on DigitalGrowth with James Robert Lay, a podcast that empowers financial, brandmarketing, sales and leadership teams to maximize their digital growthpotential by generating 10 times more loans and deposits. Today's episode ispart of the by the book Siri's, Where James Robert unlocks and shares thesecrets of digital marketing and sales strategies for financial brands fromhis best selling book, Banking on Digital Growth. The Strategic MarketingManifesto to transform financial brands that is now available on Amazon. Let'sget into the show. Greetings in Hello Thank you for tuning into the 42ndepisode of the Banking on Digital Growth podcast, where I, James RobertLay, your digital anthropologist, continue to coach and guide you tosimplify the biggest digital marketing and self strategies that will empoweryou and your financial brand to generate 10 times more loans anddeposits. Today's episode is part of the by the book Siri's where I shareinsights from my best selling book, Banking on Digital Growth, theStrategic marketing manifesto to transform financial brands. I'd like tostart things off by giving a shout out to Melanie, who left a book review onAmazon, where she shared quote. Finally, after reading countless books onmarketing and strategy, I found a book that actually resonates with me andtaught me something truly new. Banking on Digital Growth is one of those booksthat gives you a genuine ah ha moment on a regular basis. Happy to have foundthe book that has allowed me to redefine my understanding of marketingand the financial space. Thank you very much for the note. Melanie and I'm gladthat you found the book helpful, like thousands of other financial brandmarketing and sells leaders have around the world who are already transformingand elevating their banks and credit things above being just anothercommoditized organization that's...

...promoting dollars and cents. Whatthey're doing is there putting their perspective, their focus around thetransformation of people and the communities that they serve bycommitting to guide them beyond financial stress towards a bigger,better, brighter future. And one of the very first actions these leaders havetaken is they've defined a purpose which I've discussed in detail overepisodes. In this podcast episode Number 30 33 36 39. I want to take awalk back here for a moment. Episode 30 I shared how you can use purpose toposition your financial brand beyond commoditization an episode number 33.We impact how purpose can help you escape the commoditization trap andthen episode number 36. We focus on why purpose is more important than evenyour mission or vision statements. Finally, an episode 39. We've exploredhow purpose is at the heart. It's the foundation of building trust withpeople in a digital world. So what I'd like to do today is to continue alongthis pattern of purpose, this thinking around purpose, to provide you withperspective into how you can communicate and apply a purpose thatputs people at the center of all of your thinking at the center of all ofyour doing. Some key insights that were shared byBoston Consulting Group found that purpose purpose not only establishestrust and motivates consumer behavior, as we've discussed in previous podcastepisodes. Purpose also does the same for internal team members as well andthrough Boston Consulting Group's research and looking specifically atgaining internal buy in for transformative initiatives like digitalgrowth like digital transformation.

What BCG found is that quote purpose isone of those powerful intrinsic motivators because it speaks to boththe head and the heart. End quote purpose canpower your financial brand. We've talked a lot about this externally, butwhat I'd like to focus on now is how purpose can power your financial brandinternally and why purpose is so important for digital growth fordigital transformation. Coming back to the Boston Consulting Group's research,they once again share that quote. The shift in employee expectation, togetherwith the demands of an always on transformation, has further exposed theshortcomings of attempting to influence people through carrots and sticks andfar too many transformation programs. People are treated as a means to an endor worse, as collateral damage end quote You know, when we look at digitaltransformation, we know that around 80% of digital transformation projects arefailing right now, and they're failing not because of technology, but they'refailing because we way forget about those who have to deploy the thinkingto ensure that these transformation projects are as success. We'reforgetting about the people, and that's why this purpose driventhinking can also be applied not just to internal key stakeholders, not justtoe external key stakeholders. But it's it's an inside outside perspective forteam members, for consumers, for the communities that your financial brandserves. After all, when we think about anxiety of all of these changes thatwe've experienced post co vid...

...people internally externally, we're allfeeling pretty overwhelmed and and frustrated across the board. And this is why purpose must be at the heart of yourfinancial brands digital growth blueprint. And to make this a reality,whether we're talking, you know, an internal facing purpose and an externalfacing purpose, which should be one and the same. It all comes down to makingon emotional connection with people, and this could be a very intense,emotionally charged, emotionally driven discussion. But it's worth it becauseonce you define what your digital purpose is, you can begin tocommunicate that purpose and put it into action in the form of narrative.And the way you do this is by crafting a purpose statement that allows you tocommunicate your purpose with clarity and with simplicity, because simplicityis the on leeway to help someone else escape what we call the circle of chaosand the circle of chaos not only impacts account holders in perspectiveaccount holders, it also impacts internal team members as well. Yourpurpose statement will be composed of four elements that tie back to thedifferent parts of the brain. We impact an episode Number 39. There's your who identifying the who,the people that you're creating value for. And then we have the what the value that we create with theproducts you bring to bear in the marketplace. And then we have the howand how is how you create value through your process. And, more importantly,it's How do you make people feel with those processes? Because experience ismade up of just that experience is made...

...up of a set of processes, all workingtogether and finally at the top of what we call the pyramid of purpose. It'syour why it's the reason you exist. It's how you want people to feel totrust you. It's the existential question of why do you exist in thefirst place? Is it to just drive a profit? Or is it to truly transform thelives of people, help them get to a bigger better,brighter future. And as a result the profits will come because once you'vedefined your purpose statement, which does take time, it's time to apply yourpurpose. And this starts with your wholeorganization, your culture, living it and communicating it first and foremostinternally. And then you apply your purposeexternally in the communities you serve, and you do this through yourcommunication through your actions of both marketing and sales teams. This is what you say. It's what you do.This is how you build trust with people in a digital world. Your purposestatement also has the potential to become what we call a digitalpositioning statement. And this digital positioning statement is designed toattract, like mines once again, internally and externally, people whobelieve in the bigger purpose beyond just the promotion of commoditizedproducts, driving profit but truly transforming the lives of people. Andas we've talked about in previous podcast episodes, this idea of purposeis not just for commoditized retail products like socks and shoes. Purpose can absolutely create value andelevate your financial brand.

Technology has transformed our world,and digital has changed the way consumers shop for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all. But your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing andsales leader. But it doesn't have thio because James Robert wrote the bookthat guides you every step of the way along your digital growth journey.Visit www dot digital growth dot com to get a preview of his best selling book,Banking on Digital Growth, or order a copy right Now for you and your teamfrom Amazon. Inside you'll find a strategic marketing manifesto that waswritten to transform financial brands, and it is packed full of practical andproven insights you can start using today to confidently generate 10 timesmore loans and deposits. Now back to the show E Wanna take a look here atAspiration, who has a purpose driven financial brand that launched in 2015.They've now raised over $100 million in capital the same time they're puttingthat into action. They've acquired over a million customer accounts and in fact,they're reporting that they're adding over 100 100,000 new accounts everysingle month. So its aspirations purpose. It's twofold. Number one, it'shelping people save money. And number two, it's helping to save the planet.Aspiration strongly believes that they're not just building anothercommoditized financial company, but they're building something bigger,something more important. They're building a community of like minds.They didn't set out to be a bank per se, even though they're on the financialside. They set out with the purpose of...

...building a better world that could putmore money back into people's pockets to give people more power to do goodwith their money. They took all of this down and and really distilled it intofour simple words. Their purpose. Do well do good. That's how aspiration communicatestheir purpose. Forwards do well, Do good now. They actually have to act onthose words, because if we think about trust, it's what you say. But it's alsowhat you do and how they act on these four words.Do well do good. It all comes down t even how they position their financialproducts. You see one of aspirations, key products is being informed by theirpurpose. It's what they call their pay what's fair offer. And this allowsconsumers to pay aspiration whatever feed that the consumer believes is fairto their account and this particular pay. What's fair offer was built on thebelief that if you want to gain trust with people, you have to give trust.And aspiration is so confident that they believe people will love beingpart of the aspiration community, that they're doing what no other financialbrand does when it comes to fees now. Granted, there has been some skepticismamong investors when they launched this strategy. But with their pace of growththere proving the skeptics wrong, you see aspirations. Primary product is aspend and save account and that that's offering interest rates that are 100times bigger than some of the largest banks at the time of recording. Theyhave no a T M fees worldwide. They also have a program that allows theircustomers to aim. An AIM is an acronym...

...which stands for aspiration, impactmeasurement and aim means to aim for a better future by tracking your planetimpact score, and this is really rooted around a person spending spendingbehaviors their spending habits so that they can figure out whether they'respending money and a socially conscious way. In other words, AIM helps toprovide insight into their account holders so that they can see how theirdollars are matching up against their personal values and beliefs. They're also acting on the statedpurpose of helping save the planet by using Onley fossil free accounts. Yousee, in in 2019, there was a lot of bad press around the four largest globalbanks JPMorgan Chase, Wells Fargo, Citibank of America for how they werefunding fossil fuels and by leaning into this story by leaning into thisnarrative aspiration through their purpose, has been able to positionthemselves against fossil fuel funding. And as a result, Aspiration was able toscoop up over 200,000 ex Wells Fargo customers who left the bank over overthis whole fossil fuel debacle. Aspiration is very clear. They areprofit driven and I don't think we could lose sight of that. But they'reprofit driven with a purpose, and rather than charging fees to customers,they're making their money off of the spread of interest rates, along withinterchange that's charged to retailers when people swipe their Aspirationdebit card. It's also important to note that they're giving 10% of every dollarthey generate from customers toe one of seven charities that their customersget to choose by focusing on helping Americans build a bigger, better life.Now, amazingly, this makes aspiration...

...the industry leader in giving back. Andit allows their customers to get to decide on the social causes that thatcustomers, as an individual wants to focus on. When I Think AboutAspirations approaches a purpose driven financial brand, it is absolutely abold one. They've also made a really big public promise that customerdeposits would never fund firearms or political campaigns. And in doing so,they really run the risk of alienating certain consumers who might be pro gunor work in fossil fuels. But my intent with highlighting aspiration here hasnothing to do with politics and said, I just want to show and highlight how afinancial brand is courageously committing to banking on a purposethat's bigger than itself. And aspiration is doing just that. They'redoing it well and they're doing it for both internal and external stakeholders.I'm impressed. I'm impressed with what aspirations doing, but I'm not the onlyone. You see. They've gained some attention, an investment from big nameslike Orlando Bloom, the United DiCaprio and all of this comes back toeaspirations. Focus on purpose. And it's this purpose that is propelling thebrand Ford through not only their communications but also real action.And as we wrap up both today's thoughts as well as this by the book Siri's IWant to leave You with with one idea one thought for you. Toe to continue tothink about and consider as you move forward, to make progress along yourown digital growth journey without action, this idea of defining and banking onpurpose. It's just another branding exercise, and for the most part, I hateto say it. But the branding for most...

...financial brands is just B s. It'spretty pictures, colorful logos. It's shiny happy stock people on websites.Its's not really life. When it comes to banking on purpose, branding must transcend these shallowimages, and in today's digital economy, your financial brands purpose is thebrand. It's the why you do what you do but the why is Onley skin deep? Justlike those pretty pictures you might have on your website. If your purposeis not backed up by the proof by the how, by the process, defining your digital growth purpose istruly about transcending the promotion of commoditized dollars and cents, andyou have an opportunity to position your financial brand around a purposethat educates, Ah, purpose that empowers, ah, purpose that elevatespeople both internally and externally. As you commit to put the transformationof people over commoditized transactions. Be bold. Commit to make purpose. YourNorth star. You're guiding life constantly guide people on a path thatcreates a bigger, better, brighter future for the people in thecommunities that your financial brand serves. I'd like to thank you forjoining me on the by the book Siri's and I to look forward to continuing toguide you towards a bigger, better, brighter future through the insightsthat I share in my book, which you can pick up a copy for yourself and yourteam on Amazon, as well as through future thoughts I share on the bankingon digital growth podcast because I commit to continue to simplify thebiggest digital marketing and self...

...strategies that will empower you andyour financial brand to generate 10 times more loans and deposits as always,and until next time be well, do good and wash your hands. Thank you forlistening to another episode of Banking on Digital Growth with James Robert Ley.Like what you hear. Tell a friend about the podcast and leave us a review onApple podcasts, Google Podcast or Spotify and subscribe while you'rethere to get even. Mawr Practical and proven Insights, visit www dot digitalgrowth dot com to grab a preview of James Roberts bestselling book Bankingon Digital Growth or order a copy right now for you and your team from Amazon.Inside, you'll find a strategic marketing and sales blueprint framedaround 12 key areas of focus that empower you to confidently generate 10times more loans and deposits until next time, be well and do good.

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