Restore the Human Element

When the decision-making focus is purely on the numbers, there are almost always bad consequences – two of them being consumer disappointment and mistrust.

When we, as financial institutions, get to know our borrowers and understand their needs, we can make the right loans to the right borrowers for the right reasons. It's that simple.

Use Beneficial Government Partnerships

The federal Home Affordable Refinance Program, which allows consumers to refinance their loan and lower their interest rate even if they owe more than the home's current value, is a perfect example.

Yet, too few consumers are taking advantage of it, possibly due to their lack of trust in their financial institution and their fears that HARP is too good to be true. Well, it is true, and it is available at many financial institutions.

Rethink Fee Programs

Why should consumers pay fees for in-system utilization such as use of their own ATMs or mobile deposits? There are still free checking programs that don't require a minimum balance, and don't charge fees for online bill pay and debit card use.

Although it's reasonable to charge consumers pass-along costs incurred outside their own financial institution, there are fee-free accounts available for consumers who are willing to shop for the best values.

Educate Consumers About Technology

Studies on consumer behavior from the American Bankers Association and the Federal Reserve Bank indicate that traditional branch offices are becoming "dinosaurs," as only about 10% of transactions are handled in these bricks and mortar facilities and a growing number of consumers of all ages prefer virtual channels.

In fact, we recently heard from a 93-yearold member who was pleased she could conduct all her transactions virtually. Just think of the cost savings that could be passed on to consumers if institutions stopped "financing the dinosaurs."

Improve Financial Literacy

It is a truism that an educated consumer is the best customer. Unfortunately, over the years, the responsibility for educating young people in financial literacy has slipped between the cracks, and now it is taught only rarely in the schools or in the home.

Generations of parents who don't practice sound financial judgment themselves cannot pass these important concepts on to their children. If we expect coming generations to make good financial decisions, we need to encourage and facilitate financial literacy, and by "we," I mean our nation's financial institutions.

Offer Better Retirement Plan Counseling

Given the lack of financial literacy, it's not a surprise that many in the boomer generation will face unfunded retirements. That means delayed retirements and staying in the workforce longer, often at reduced wages, which in turn has a ripple effect on employment opportunities for younger generations.

In the past, retirement planning was usually done with investment advisers, but was sorely lacking for those without healthy investment portfolios. Again, we believe financial institutions can and should play an active role in the area of financial planning.

In summary, financial institutions need to listen to their consumers and make the right decisions for the right reasons. I can't think of better ways to regain trust and re-establish true partnerships with the individuals, families and businesses we serve.

Joe Brancucci is president/CEO of GTE Financial. He can be reached at 813-414-6202 or [email protected].