The Price of Everything, builds on the concept that we spoke of here, that online banking is satisfying customers to a point, but it is not addressing customers needs to develop a relationship and be known at their Bank.

This mythical age of banking may have never truly existed, but we seem to be moving further away. As banking moves online and credit scoring replaces reputation, banks sacrifice the human touch.

As community dissolves, banks lose. We are still highly trusted, but there are fewer places to apply that trust.

Mike goes on to bring in the Social Networking/ Web 2.0 concepts as potential replacements for the local branch in establishing that connection.  I buy that, and commented ….

I think all is not lost. The tools and concepts embedded in Web 2.0 and in particular engaging customers at an emotional level over the web is a start. Its just that Banks till now believed all they had to do was put all their transactional capability on the web, and everyone would be happy.

Perhaps we are wrong, and people will always want the local banker at the branch.  That’s possible, but watching Gen Y and Gen M suggests different. The key is that Social stuff has to be done with heart and feeling.  It cannot be faked. The now famous Edelman example falls into the fake/ corporate blog category.  Just as a branch manager with a flippant attitude will not be trusted, there are attributes for blogs, and social sites that must engender deep confidence, and respect.