Business and consumer loan products, deposit account products, treasury management products and services, and your institution’s website are all examples of “bank products,” and all these bank products deserve a product manager. This week, we are taking a look at 10 essential roles for a banking product manager.
The problem is that institutions’ marketing departments focus on marketing “all products” but there is no operational owner for the individual products. Therefore, products are like orphans. They are birthed and then are left on their own to go through life. While that may be a drastic analogy, that is exactly what happens with products at most financial institutions resulting in product failures, no accountability to maintain products, or no one knowing each product’s profitability.
The Marketing Committee (if you have one) is a great place to start the discussions of individual product management. Although it’s a good idea to work together as a team on the marketing of products, each product needs and deserves the attention of one non-marketing person accountable and responsible for managing the product through its life cycle.
We recommend formally defining the role of a Product Manager. What does it entail to be the banking product manager for a specific product or line of products?
Let’s study the overall responsibilities of a Banking Product Manager:
1. Solve Customer Needs with a Solution
Product Managers ensure that it’s always all about meeting customers’ needs! They survey customers and research what’s available in the market as well as competitors’ offerings.
2. Product Ideation and Creation
Once a Product Manager knows what customers are asking for, the next step is to answer the question: Are you going to create/develop a new product or are you going to see what the market already offers? Most institutions don’t have the resources to develop products internally, so they look at market options.
3. Define a Clear Target Market
Product Managers know exactly what type of customer (business or consumers) will buy your new product before launching new products. Furthermore, to sell business products, knowing who inside a business is your target “persona” helps you create a “personalized and customized marketing approach.”
4. Manage Vendor Relationships
Product Managers select the right vendor whose product will integrate best with your core system and is a critical step in the implementation process. Additionally, they must follow the vendor due diligence established on your Vendor Management Program.
5. Manage Product Profitability
For some reason, in the past, community banks and credit unions have offered products that they believe account holders expect for free. Yes, there are some products that, unfortunately, because every other financial institution offers for free, then you feel obligated to give it away. However, you must be very careful to study the actual product cost of development and ongoing maintenance. This includes what the core system provider or third-party vendor charges your institution on an ongoing basis. Once again, bank product management ensures profitability.
6. Collaborate with the Marketing Team
The Product Manager should hold a seat on the marketing team and ensure a marketing plan for each product exists. They can also assist the marketing team with messaging for similar products such as Remote Deposit Capture and Mobile Deposit and educate your customers as to which may be a better fit for them.
7. Ongoing Surveying and Communications
The Product Manager continually requests feedback from product users. That is the only way to continue improving products. Similarly, it may be the only way to discover a specific product is no longer needed/wanted and needs to be sunset. Sometimes you may decide to switch vendors and the existing product will have different functionalities or a new look.
8. Product Reporting
The Product Manager collects data and report to the Marketing Committee as well as to the leadership—especially if the institution made a significant investment in a new product. There should be an ROI for each product.
9. Product Life Cycle Management
Product Managers ensure the product is launched successfully, monitor the life cycle of each product, and recommend if, at any time, it’s time to end a product. Often, retiring an old product and creating a brand new one gives the institution an opportunity to create awareness about services that your existing clients didn’t even know you offered.
10. Product Training
Product Managers are responsible for making sure the sales and operations teams are fully trained in each product. Everything from results, benefits, features and onboarding procedures need to be trained to the staff.
Bonus Item: The Right Talent
Banks and credit unions need to allocate the right talent and experience to fill the position of a Product Manager. Some of the key talents needed are project management, leadership, ability to communicate with customers, peers, technical staff, operations, and sales teams. In addition, you need someone who can handle multiple priorities and work with the various teams on different parts of the project simultaneously.
Many financial institutions see the Product Manager position as an expense because they don’t necessarily bring sales to the institution. However, having a Product Manager will ensure that your institution is on top of new products, that your products are solving customers’ problems, and that products get the individual attention they deserve to live through the life cycle successfully. Defining, developing and staffing the Banking Product Manager role shows your institution is trying new things and continuing to look for solutions to your customers’ needs.
Have more responsibility ideas for this position? Let us know in the comments below.