Online Banking is virtually identical amongst the big banks.  We all sit around and compare the functionality differences, identify those as the root cause of our problems, and claim out share of the investment plan to ensure “competitive parity”.

Well, Kathy’s post here, in typical fashion points out why that approach is a bad idea, and results in sameness amongst products – in our case amongst online banking.

Creating Passionate Users: Ignore the competition

What would happen if we completely, utterly, totally ignored the competition? What if we stopped thinking about competition at all? Perhaps if we devote all of our attention to users (and our own ability to innovate), we’ll stop being dragged off into areas that build our feature list, but often at the expense of users. That development time might be better spent.

Some very astute points made here:

“What if the competition comes up with something really good? Something users really like? “
Then you’ll hear about it by staying in close contact with your user community.

and

“What if potential users do shop off a checklist?”
Then we should be educating them.

Then the killer point:

If our only “competitive advantage” is by staying one step ahead of The Feature Arms Race, we’re vulnerable.

Its so obvious a point, yet we all miss it  …  if we focus on competitive advantage, and having the same fucntionality as they do, solely, then we have lost sight of a) our customers, and, b) our business model.  We should have a business model based on deep understanding of the marketplace, our customers, and our ability to compete in that space.  If we chase competitors functionality, we are automatically at worst, playing to their strength, and at best, remaining as bad as they are.

Banks have to regard online banking not as a unique strategy, but as a core component of their business model.  Its right up there with branches, telephones, and high interest savings accounts.  Its a core capability requirement. 

I think thats why I liked Coast Savings site yesterday.  Its not a copy of anyone … its theirs!

Relevance to Bankwatch:
Online banking should be considered as a core strategy component, and as such aligned first with the business model, and customer needs. 

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