The subtitle to this blog "Which banks understand the web lifestyle?" was picked deliberately. I believe that the Banks that will prosper and thrive, are those that actively and positively lever the power of internet. A general theme is evolving that will make this very hard to banks' to deal with this issue, but at the same time essential for survival.

That theme has been called, networking, community, community of interest, but it is all of those and none of them. This is a new state that we are dealing with here, as we search for known metaphors.

Management Speak – Leadership and Management – Add Your Knowledge and Share in the Wisdom of Crowds

What do the stock market, Wikipedia, Google and James Surowiecki have in common? They all believe in the wisdom of crowds.

Author James Surowieki argues in The Wisdom of Crowds that "collective wisdom" is not an oxymoron. He cites numerous instances where many
discrete decisions and inputs can create a whole that is far more accurate or powerful than anything created by just a few decisions and
inputs. The stock market is an example, where the mind-boggling number of decisions and inputs intersect to create essentially a gigantic
repository of knowledge.

Back in the early days of internet, the concept of networks was one of many aspects that were overworked as a benefit of internet. This hype used words such as "community" as the key to unlocking the internets potential. What is different now, is the appearance of new tools that facilitate natural networking, and community development.

Tools, such as blogs, wiki's, RSS and tags, supported by the capabilities of broadband, wifi, home networks, and cheap laptops, are core to this development. I use the word tools advisedly – most internet users, do not use any of the tools mentioned today, but in 5 years, most will use them, overtly, or invisibly. Those tools are taking internet to a new level, beyond anything we know today.

Its natural, and no-one has to "join" todays communities. You can share, observe, contribute, ignore come back later – it fits with how people do everything in their day to day life. In fact it is natural to be a new part of day to day life. The four tools mentioned, blogs, wiki's, RSS, Ajax and tags contribute to development of a live internet, one that responds to you, the user, and makes the internet personal.

So what has all this boring stuff got to do with Banks, you may ask. Well I predict that all of these tools will be commonplace within online banking within 5 years. Here are some simple examples:

• product selection tools (blogs, wiki's)
• reminders for key dates, such as maturities (RSS)
• product and rate comparisons (tags)
• faster, simpler, clearer online banking applications (Ajax)

These tools can deliver such capabilities because of the title for Mr Surowieki's paper, "wisdom of crowds", as Tara refers to it as "Pinko Marketing", or as described by Stowe, unmarketing. They key is that the tools I mention can facilititate shared knowledge, and valuable information. Its valuable because the customer wants it. Its not direct mail, spam, or junk (paper) mail. Its like a genie in a bottle – it shows up when you need it, and remains in the bottle when you do not.
This future utopian world will come about because it is naturally developing online, as a reflection of how people interact in the coffee shop. It is naturally developing amongst our customers, and last time I checked, you won't go far wrong listening to customers. They chat, share experiences, listed, talk, and interact. The net result tend to be formation of your own valued opinions and thats what is happening here.

Relevance to Bankwatch:

Bank marketing needs to evolve, and get accustomed to some very new and uncomfortable concepts, that will be core elements of future customer loyalty. Banks should take small steps now, and get their toes wet. Thats why Wells have a blog. Yes, Wells Fargo – 5th largest bank in the US – it has already begun.

Tags: Pinko Marketing