We’ve worked with many Community Banks and Credit Unions over the years and have noticed that many outsource website hosting to a core system provider. While it may seem like an easy decision to make (if they can run our core, they can run our website), unfortunately it is probably the wrong decision. A well-managed and search optimized website is critical; so let’s dive into 6 reasons to stop outsourcing your website to your core system vendor.

Reason #1: Lack of Expertise in Website Management

Core system vendors specialize in offering banking and financial systems, not in web development. Their expertise lies in providing core banking solutions like transaction processing, account management, and other back-end services. Website development and management require a different set of skills and knowledge, which are usually not the primary focus of these vendors.

Impact on Website Quality and Functionality:

• Design and User Experience: Core system vendors often use templated approaches to website design, which may not align with the branding and user experience needs of your organization.
• Technical Limitations: Without specialized knowledge in web development, websites created by these vendors may lack advanced features and functionalities. This includes limitations in responsive design, which is crucial for mobile users, and the integration of modern web technologies for enhanced user experience.
• SEO and Online Visibility: Core system vendors may not be up to date with the latest SEO strategies. Websites lacking in SEO optimization fail to rank well on search engines, leading to reduced online visibility and missed opportunities to attract potential customers.
• Scalability and Flexibility: As your institution grows, its website needs to scale and adapt. Core system vendors may not provide the necessary flexibility for scaling, updating, or adding new features, leading to a website that quickly becomes outdated.

While core system vendors are essential for their primary services, their lack of specialization in website development can lead to websites that don’t meet the evolving needs of modern banking customers. A dedicated web development team, on the other hand, can ensure a website that is not only visually appealing and functional but also optimized for SEO, security, and scalability.

Reason #2. Poor SEO Performance Due to Platform Limitations

According to SEMRush “Search Engine Optimization (SEO) is a set of processes aimed at improving a website’s visibility in search engines, like Google, with the goal of getting more organic traffic. SEO is about fulfilling users’ search needs by creating relevant, high-quality content and providing the best possible user experience.” In a nutshell, your institution’s website is competing with larger competitor’s websites, so at a minimum, you need to be competitive at SEO.

Core system vendors typically use one-size-fits-all platforms, which often include only basic, generic SEO features. These platforms may not offer the advanced SEO tools and customization options needed for effective search engine optimization.

These platforms often come with inflexible content management systems (CMS) that limit the ability to optimize individual pages for SEO. This includes constraints in modifying meta tags, creating SEO-friendly URLs, and structuring content for better search engine indexing.

SEO algorithms, especially those of major search engines like Google, are constantly evolving. Platforms that are not regularly updated to reflect these changes can quickly fall behind, making your website less competitive in search rankings.

With the increasing importance of mobile-first indexing, a platform’s inability to efficiently support mobile optimization can severely hamper your website’s SEO performance.

Consequences of Poor SEO:

• Reduced Online Visibility: One of the most direct consequences of poor SEO is reduced online visibility. If a website does not appear in the top ten of search results, it is unlikely to be visited by potential customers. This is especially crucial for local searches, where large and small institutions often compete.
• Lower Website Traffic: Poor SEO directly correlates to lower organic traffic. If potential customers can’t find your website through search engines, you miss out on a significant source of traffic and, consequently, potential business.
• Diminished Credibility and Trust: High search engine rankings are often associated with credibility. A lower ranking can inadvertently lead to a perception of lower credibility among potential customers.
• Impact on Marketing Efforts: SEO is a critical component of digital marketing. Poor SEO performance can undermine your other marketing efforts, such as online advertising and social media marketing, making these campaigns less effective and more costly.
• Challenges in Competing with Larger Institutions: For smaller community banks and credit unions, effective SEO is a way to level the playing field with larger institutions. Without strong SEO, these smaller entities may find it increasingly difficult to compete in an already competitive market.

A platform that is specifically designed for search engine optimization, regularly updated, and flexible in content management is key to enhancing online visibility and staying competitive in the digital age.

Reason #3. Limited Site Structure Flexibility

A flexible and well-structured website is not just a cosmetic preference but a fundamental need for effective SEO and user satisfaction.

Many core system vendors offer website solutions based on rigid templates and predefined layouts. This restricts your ability to customize the site structure according to specific SEO strategies or user experience needs. For instance, you might want to highlight certain services or products in a particular way, but the templates prevent this.

Effective site structure involves a clear hierarchy and intuitive navigation, which are essential for both SEO and user experience. Vendor-provided solutions may not allow for the creation of a logical hierarchy or easy-to-navigate menus, making it difficult for users and search engines to find relevant content.

Impact on SEO and User Experience:

• SEO Challenges Due to Poor Structure: Search engines rely on a clear site structure to understand and index content. A rigid, poorly organized website can lead to poor indexing by search engines, which negatively affects search rankings. For example, if important pages are buried deep within the site and are not easily accessible, they might not be indexed effectively.
• Difficulty in Implementing Advanced SEO Strategies: Advanced SEO strategies often require a flexible site structure. This includes the ability to create landing pages for specific campaigns, optimize category pages, and structure content for featured snippets. Limited flexibility hampers these efforts.
• User Experience Compromises: A website that is hard to navigate leads to a frustrating user experience. Potential customers and members might find it difficult to locate the information they need, such as loan rates, branch locations, or account options.
• Mobile Responsiveness Issues: With the increasing use of mobile devices, a flexible site structure that adapts to different screen sizes is crucial. A rigid site structure may not work well on mobile devices, impacting both user experience and mobile SEO.
• Local SEO Impact: Local SEO is critical for community banks and credit unions. A lack of site structure flexibility can affect the optimization of local pages, such as branch location pages, impacting local search visibility.

Be sure to seek website solutions that offer the flexibility to tailor your site structure to meet specific SEO goals and provide an optimal user experience.

Reason #4. Restricted Control Over Images

Visual content plays a crucial role in user engagement and SEO, having full control over images is essential.

Core system vendors often provide websites with limited options for customizing and optimizing images. This can include restrictions on image sizes, formats, and the ability to add alternative text (alt text), which are critical elements for SEO.

Many vendors offer a limited library of generic images. These often lack the specificity and relevance that your institution might need to represent its brand, services, and community effectively.

Impact on SEO and Visual Appeal:

• SEO Disadvantages Due to Non-Optimized Images: Search engines use image-related information, like file names and alt text, to understand and rank content. Limited control over these aspects can result in images that do not contribute to or even hinder the site’s SEO performance.
• Slower Page Load Times: Without the ability to optimize images (such as compressing file sizes), your site can suffer from slower loading times. Slow load times are a negative ranking factor for SEO and can lead to higher bounce rates as users become impatient.
• Reduced Engagement and Brand Representation: Images are a powerful tool for engaging users and conveying your brand’s message. Restricted control over images can lead to a website that looks generic and fails to resonate with your target audience.
• Mobile Responsiveness Issues: In the era of mobile-first indexing, images need to be optimized for different device screens. Limited control over this aspect can lead to poor user experience on mobile devices, further affecting SEO and engagement.

Examples of Visual and SEO Challenges:

• Promotional Campaigns: Limited ability to customize images can make promotional campaigns less effective. For example, a special offer on auto loans might not have the visual impact needed to attract users due to generic or poorly optimized images.
• Community Engagement: Your marketing team often relies on images to connect with your local community. Restrictions on image control can prevent you effectively showcasing community involvement, local staff, or custom financial products.

Seek website solutions that offer the flexibility to fully manage and optimize images, ensuring that your website not only ranks well in search engines but also resonates strongly with your audience.

Reason #5. Lack of On-Site Blog Options

The absence of having an on-site blog (a blog directly integrated into the website itself) can hinder your ability to maximize its potential.

Blogs are a powerful tool for SEO because they allow for the regular addition of fresh, relevant content to your website. Search engines favor websites that are frequently updated with quality content. Blogs provide an opportunity to incorporate keywords, increase page count, and keep the site dynamic, all of which are favored by search engine algorithms.

An on-site blog enables your institution to establish itself as an authority in the community banking sector. By providing valuable insights, advice, and news, you can build trust with your audience. This trust not only helps in retaining existing customers but also in attracting new ones.

Blogs create opportunities for user engagement. They can be used to answer common customer queries, train business customers on Treasury Management services, provide financial tips, and share community news, which keeps users coming back to the site. Engaged users are more likely to explore other parts of the site, potentially leading to increased business.

Blog content can be shared across social media platforms, increasing your online presence, and driving traffic back to the website. It also serves as content for email newsletters, social media, and other marketing campaigns.

The Drawback of Vendor Solutions:

• Limited Blogging Capabilities: Many core system vendors do not offer integrated blogging platforms in their website solutions. This lack limits your institution’s ability to easily publish and manage blog content, thus missing out on the significant benefits blogs offer.
• Missed SEO Opportunities: Without an on-site blog, you miss out on a key strategy for improving your search engine rankings. The continuous stream of fresh, keyword-rich content that blogs provide is a cornerstone of effective SEO.
• Restricted Content Marketing: In an era where content marketing is king, lacking a blog can put your institution at a competitive disadvantage. You lose a valuable channel to engage with your audience, share insights, and promote services.

Real-World Impact:

• Case Studies and Success Stories: For instance, a community bank that shares regular blog posts about local financial success stories or economic trends can attract and engage a local audience more effectively than a static website.
• Educational Content: Offering educational blog content about financial planning, investment strategies, or even basic banking tips can significantly enhance your value proposition to your customers.

An on-site blog is not just an add-on but a critical component of a modern, effective online presence. The inability to include this feature due to the limitations of core system vendor offerings can be a significant missed opportunity in terms of SEO, customer engagement, and overall online marketing strategy.

Reason #6. Slow Reaction to Content Changes and Additional Costs

Core system vendors often have longer turnaround times for content updates. This delay can be due to their larger client base, internal processes, or lack of prioritization of web services.

In the fast-paced digital world, timely content is crucial. Delays in updating important information can lead to outdated or irrelevant content being displayed on the website. For instance, if you are slow to update information about a new loan product or interest rate changes, you can miss out on potential business and damage customer trust.

Slow content updates can also impede the effectiveness of marketing campaigns. If a campaign is launched but the website content is not updated promptly to reflect this, the campaign’s impact is diminished.

Additional Costs for Changes:

• Charges for Updates: Many core system vendors charge additional fees for content updates and changes. This fee structure can quickly increase the overall cost of maintaining the website.
• Cost of Inflexibility: The inability to make quick and cost-effective updates can lead to missed opportunities. For example, if you cannot promptly advertise a special rate due to the cost or time involved in updating the website, you lose out on potential customers who go to competitors with more up-to-date information.
• Budget Constraints and Planning Issues: Smaller institutions may find these additional costs and the unpredictability of these expenses challenging. Budget constraints might force you to limit the frequency of updates, further affecting the website’s effectiveness.

Real-World Consequences:

• Case Example – Promotional Delays: Consider a scenario where you plan a promotional offer for a holiday season. A delay in updating the website due to slow vendor response or the high cost of making the update could result in the promotion getting less exposure and thus, lower customer participation.
• Impact on Customer Experience: Regular customers who visit your website might find outdated or inconsistent information, which can lead to frustration and a decrease in customer satisfaction.

Slow reaction to content changes and the additional costs associated with updates can be significant hindrances. consider these factors when choosing a website management solution, as they directly affect the efficiency, effectiveness, and overall cost of your online presence.

Having a dynamic, responsive, and efficiently managed website is no longer just an option, but a necessity. By considering our 6 reasons to stop outsourcing your website to your core system vendor and look for providers who specialize in website development and SEO, you can greatly enhance your online presence, ensuring that your website attracts and engages your target audience.

Thanks for Reading!

Website SEO effectiveness and where the site is hosted is something that inevitably shows up in Strategic Planning sessions with our clients. While we aren’t experts in the field, we know several reputable vendors who are:

90 Degree Media LLC: Jamison and his staff keep things humming for the Malzahn Strategic website. They have run our site since inception and do a great job at both hands-on management or hands-off management (depending on your needs).

Astoundz: This Houston, TX based SEO and Digital Marketing Agency provides expert help in making your website SEO responsive and are experts in the field. We’ve done a lot of work with them. Tell them we sent you!

If you are more in the “Learn It then Do It” camp, Findability might be for you. They empower business owners, entrepreneurs, and marketing teams to dominate online with easy, non-technical SEO or what they call “Findability” training. We’ve attended their training and it works. Attend their online course or a workshop and get up to speed quickly.

Looking for ideas to expand your Treasury Management reach to new business customers? Look into the TMClarity Framework, our comprehensive and transformative training and Treasury Management business management system that leads to greater sales success, higher margins, and increased customer retention in a competitive marketplace.

Some of the links on this page are affiliate links. This means if you click on the link and purchase an item or subscribe to a service, we will receive a small commission at no extra cost to you.

Are you a business developer or a relationship manager? That is a question every business banker should ask him or herself. Why? Because there is confusion about what these two roles do within a community bank or credit union. We’ve seen various titles for this job such as commercial lenders, commercial bankers, business bankers, business banking officers, and others. However, the actual role performed by individuals in those roles is different based on the person’s sales skills, experience, and personality.

There may be many business bankers or commercial lenders, but few are “rain makers” – those who are out there selling every day and bringing in the net-new business. I propose there are two different roles: The sales roles and the relationship manager role. And there may be a team arrangement that works better than the one your institution currently has in place.

Let me explain. Community financial institutions share the following challenges regarding the sales role in their organizations (especially in rural areas):

The challenges community banks and credit unions encounter:

• Many commercial lenders/bankers, business bankers, business development officers (whatever their titles), are not producing net-new deals every month. They are the highest paid staff in the organization and are paid to bring new business into the bank. Yet they are not going out to sell. Instead, they are “order takers” and prefer to stay in the branch waiting for businesses to come out of nowhere. These same employees are excellent lenders and relationship managers.
• Because it is very difficult to attract and retain talent in rural areas and small towns, community banks and credit unions feel stuck with the business bankers they have. It’s a catch 22! If they let go of the current talent, it may take several months to rehire that position. If they keep the current bankers, the lack of net-new sales remains.
• There is no sales culture. In fact, many bankers are either terrified or at least against the four-letter-word: “sell.” The non-sales culture must change. But not to the extent of certain large institutions where some abused the system and took advantage of customers. There is a balanced approach for community banks and credit unions that is appropriate and well received by customers.
• But the biggest challenge we’re seeing is with family-owned banks. The ownership does not want to or does not know how to keep the bankers accountable. There have never been consequences for not bringing new business to the bank.

Below are three ways to address this important issue at your institution:

Establish Accountability

Measure the sales team by using incentive compensation plans with goals and performance reviews to assess results. In fact, one of the questions that leadership should ask bankers in these positions is: Are you a business developer or a relationship manager? Do you believe you are in the right role based on your sales skills, experience, and personality? Below is a grouping example of incentive bonus compensation plans for the various areas of the institution:

1. Senior and executive leadership
2. Business sales staff (business bankers, commercial lenders, commercial bankers, business development officers are all the same role: sales)
3. Relationship Managers. Maybe it’s time to think of a separate plan for relationship managers who don’t sell but take care of the customers well. They can have their own goals or be part of the team approach incentive compensation.
4. Retail sales staff
5. Support staff

Incentive Compensation Bonus Plans need to have an organization-wide goal, then branch goals, team goals (for a sales team approach) and lastly, individual goals. It is also wise to include a subjective piece that includes the employee’s behavior and team relations.

Use a Sales Team Approach

We’ve seen the team approach work very well for some institutions. Each team has one rain maker who is always out on calls and bringing in net-new business. They don’t underwrite their own loans, and some don’t keep a portfolio. Their role is purely sales. The in-house relationship manager becomes the ongoing “maintainer” of  relationships with the ability to cross-sell other services. This team has one credit analyst to work with both the rain maker and the relationship manager. Separately, loan operations and loan documentation support this team in the entire lending process.

Establish a Balanced Sales Culture

Selling is not bad. In fact, without sales, companies would not exist. Each institution must find the right approach to their sales culture. Employees at all levels should be trained to identify customers’ needs and match them with a banking product. Or at the minimum, refer the customer to the right person in the institution. When you approach sales as simply meeting your customers’ banking and financial needs, there is no shame. It is fulfilling when you see the results of how you helped each business flourish because of your banking services.

Conclusion

There is no perfect answer for each community bank or credit union to address the issue of bankers not selling. But there should always be accountability in place to ensure all employees perform their role. If you are in the role of business banker or commercial lender, ask yourself this question: Are you a business developer or a relationship manager? It is okay to be one or the other based on what you enjoy most and do best. But ensure you are in the right role as that will bring success to both you and your institution.

Looking for ideas to expand your Treasury Management reach to new business customers? Look into the TMClarity Framework, our comprehensive and transformative training and Treasury Management business management system that leads to greater sales success, higher margins, and increased customer retention in a competitive marketplace.