Credit institutions should rethink their mission statement

Banks and savings banks find it difficult to clearly differentiate themselves from competitors from the customer’s perspective. Differentiation would be more important than ever. A prerequisite for this is knowing what you stand for. But many institutes do not have a clear answer to this either. Read more at lullabysongs.net

All banks and savings banks see themselves as customer-oriented. In fact, from the customer’s perspective, this only really applies to very few. Most banks in this country – unlike in other countries – do not advertise not with customer orientation at all, but with prices or products.

So it is actually no wonder that – as recently reported here – half of the customers perceive no discernible difference between their own main bank and other institutions. Many customers believe that banks and savings banks and their offers appear to be interchangeable.

Especially in times when not only competition within the industry is a challenge, but increasingly new competitors are trying to win the favor of customers, a clear differentiation is more important than ever.

The mission statement serves to create meaning

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Differentiation begins with the mission statement, ie what you stand for and want to be recognized in the market. Every company needs a mission statement. Banks and savings banks too. Most have also filled one, but often with stereotypical standard phrases that have been copied from the textbook or from the competition. The Internet also provides a variety of templates. Perhaps a reason for the lack of enthusiasm for innovation?

In addition to your own self-image, a mission statement contains goals and basic principles of the strategy for achieving them. It serves to create meaning for a company. Banks struggle with this, although they owe their existence to a deeper meaning, namely to support customers with their financial needs. FinTechs and other innovative companies find it much easier to deal with, perhaps one of the reasons why they feel they are closer to the customer.

A unique mission statement inspires

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Admittedly, even if it is part of the standard repertoire of strategic management, it is not easy to create a truly unique mission statement. However, it is worth it. Because a unique mission statement inspires, and not just customers, but everyone who has to do with a company, including employees and managers.

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