First Horizon Corporation (FHN): Marketing Mix Analysis [10-2024 Updated]

As we delve into the marketing mix of First Horizon Corporation (FHN) for 2024, we uncover the strategic elements that drive their business success. From a diverse array of loan offerings and a robust branch network to innovative digital banking solutions, First Horizon is poised to meet the evolving needs of its customers. Explore how their competitive pricing, targeted promotions, and well-planned placement strategies ensure they remain a formidable player in the financial services landscape.

First Horizon Corporation (FHN) - Marketing Mix: Product

Diverse loan offerings including commercial, industrial, and consumer loans

As of June 30, 2024, First Horizon Corporation (FHN) reported total loans and leases of $62.8 billion, reflecting an increase of $1.5 billion or 2% from December 31, 2023. The composition of loans includes:

Focus on residential real estate loans and home equity lines of credit (HELOCs)

FHN's consumer real estate loans include Home Equity Lines of Credit (HELOC) and real estate installment loans. As of June 30, 2024, the consumer real estate loan portfolio totaled $13.9 billion. HELOCs comprised a significant portion of this portfolio, with approximately 95% of HELOCs in the draw period.

Specialty services such as mortgage banking and investment management

FHN's mortgage banking income was $10 million in the second quarter of 2024, which represented an increase driven by higher origination volume during the spring home-buying season. Additionally, FHN offers investment management services, contributing to its diversified revenue streams.

Comprehensive cash management and deposit products

FHN provides a range of cash management services and deposit products. As of June 30, 2024, total deposits were $64.8 billion, a decrease of $986 million from December 31, 2023. The bank's deposit structure includes both interest-bearing and noninterest-bearing accounts.

Investment in technology for digital banking solutions

FHN has been investing in technology to enhance its digital banking solutions, catering to the growing demand for online services. The bank's digital banking features include mobile banking, online account management, and digital payments, which are essential for maintaining competitiveness in the financial services sector.

First Horizon Corporation (FHN) - Marketing Mix: Place

Strong presence in the southern United States, primarily in Tennessee and Florida

First Horizon Corporation (FHN) has established a significant foothold in the southern United States, with over 450 business locations spread across 24 states. The majority of its branches are concentrated in Tennessee and Florida, where it operates more than 400 banking centers. This strategic placement allows FHN to cater effectively to its core customer base in these regions.

Branch network and ATMs strategically located for customer accessibility

FHN's extensive branch network is complemented by a robust ATM presence. As of June 30, 2024, the corporation had approximately 1,000 ATMs in operation, ensuring that customers have convenient access to cash and banking services. The locations of these ATMs are strategically chosen to enhance accessibility, particularly in high-traffic areas and underserved communities, thereby maximizing customer convenience.

Digital banking options available for remote transactions

In addition to physical locations, FHN offers a comprehensive suite of digital banking services. Customers can perform a variety of transactions online, including fund transfers, bill payments, and account management. As of mid-2024, FHN reported that over 70% of its transactions were conducted through digital channels. This shift toward digital banking aligns with evolving consumer preferences for remote access to financial services.

Targeting both urban and rural markets to maximize reach

FHN's marketing strategy encompasses both urban and rural markets, allowing it to maximize its reach. The company aims to serve diverse customer segments, from small businesses to individual consumers, ensuring its services are accessible across different demographics. This dual focus enables FHN to tap into various market opportunities and respond to the unique needs of customers in both settings.

First Horizon Corporation (FHN) - Marketing Mix: Promotion

Increased marketing expenditure for new product launches, particularly checking accounts

In 2024, First Horizon Corporation allocated approximately $14 million towards advertising and public relations, reflecting a 75% increase compared to the previous quarter. This expenditure is primarily focused on the launch of new checking account products aimed at attracting a broader customer base.

Utilizes digital marketing strategies to engage younger demographics

First Horizon has emphasized digital marketing strategies, increasing its online marketing budget by 30% in 2024. This shift targets younger demographics, specifically those aged 18-34, who represent a significant portion of new account openings. The bank reported that 40% of its new checking account customers in Q2 2024 were acquired through social media campaigns.

Community involvement and sponsorships to enhance brand visibility

First Horizon has engaged in numerous community involvement initiatives, including sponsorships of local events and charitable organizations. In 2024, the bank reported contributions of $50 million to community programs, which is a 10% increase from 2023. This investment aims to enhance brand visibility and foster customer loyalty.

Focus on customer education regarding financial products and services

First Horizon has implemented a comprehensive customer education program, investing $5 million in 2024 to develop resources and workshops aimed at educating customers on various financial products. This initiative has seen participation from over 10,000 customers in the first half of the year, which aligns with the bank's goal to improve financial literacy among its clients.

First Horizon Corporation (FHN) - Marketing Mix: Price

Competitive interest rates on loans and deposits compared to regional banks

As of June 30, 2024, First Horizon Corporation (FHN) reported a net interest income of $629 million for the second quarter, reflecting a slight increase from $625 million in the previous quarter. The average yield on commercial loans was 6.78%, while consumer loans yielded 6.34%. Additionally, FHN's average interest rate on deposits was approximately 2.31%. This competitive positioning in interest rates is designed to attract new customers and retain existing ones amidst a landscape of rising rates among regional banks.

Fee structures designed to attract new customers while maintaining profitability

FHN's fee structure includes a range of service fees that are designed to be competitive yet profitable. For instance, noninterest income for the second quarter of 2024 was reported at $186 million, which included $44 million from deposit transactions and cash management. This strategic fee structure aims to draw in new customers while ensuring that profitability is not compromised.

Ongoing assessment of pricing strategy based on market conditions and competition

First Horizon continuously evaluates its pricing strategy to adapt to changing market conditions. As of the first half of 2024, the company reported a total of $62.8 billion in loans and leases, with a significant increase in commercial loans of $1.3 billion. This ongoing assessment allows FHN to remain competitive and responsive to market dynamics, ensuring that its pricing reflects both the perceived value and market demand.

Flexible pricing options for commercial and consumer loan products to meet diverse needs

FHN offers flexible pricing options tailored to various commercial and consumer loan products. For example, the HELOC (Home Equity Line of Credit) interest rate was competitively set at around 7.25% as of June 30, 2024. Additionally, the company maintains a diverse portfolio, with consumer real estate loans totaling $13.9 billion. This flexibility in pricing meets the diverse needs of customers, enabling FHN to cater to a broader market base.

In summary, First Horizon Corporation (FHN) effectively leverages its diverse product offerings and strategic market presence to cater to a wide range of customer needs across the southern United States. The company's commitment to competitive pricing and innovative promotional strategies positions it well in the competitive banking landscape of 2024. By continuously adapting its marketing mix, First Horizon not only enhances customer accessibility but also strengthens its brand reputation, ensuring sustained growth and customer satisfaction.