David from INGBlogs builds on an essential point here in a comment that I thought worth amplifying into a post. The bank is becoming less important in its role of middleman between demand and supply of money – at least, in the medieval bank model as set up by some rich Italian families hundreds of years ago. A newer middleman function for a bank could be modelled after the eBay model. Let the expertise and decision making of demand and supply reside with these parties themselves. This would apply to retail banking but also to corporate banking. Toyota could lend money … Continue reading Banks role as middleman is under attack

 Got this great post from a link in Chris’s feed.  I have spent years developing strategies, getting them approved, and the next few quarters adjusting, and re-budgeting so this resonates. “Make small, frequent decisions whenever possible. You will have many opportunities to make small decisions & use them as best you can. Your reaction time will be too slow if you always try to come up with a comprehensive plan, and the situation may change, rendering your plan irrelevant. Constant reassessment is possible if you work in small steps. Once a group comes up with a master plan, people can become overly … Continue reading We Have No Plan | CEO Blues

Setting the tone for the next BAI, this statement sums up the state of banking well.  Its innovate or merge to grow.  What we’ve heard loud and clear is that the banking industry has become an increasingly commoditised marketplace and banking organizations are looking for new ideas and groundbreaking concepts to help them thrive in the competitive marketplace. Source: Payments News: Innovation ‘Very Important’ to Most Banks – October 16, 2006   Technorati tags: banking+strategy Continue reading Payments News: Innovation ‘Very Important’ to Most Banks – October 16, 2006

 George highlights a new book that sounds very relevant. The book, “Why business people speak like idiots.”  This quote of Russ Klein of Burger King, is the perfect example.  ‘Turning your brand over to the consumer enables social connectivity as a means of empowerment.’ Source: Pardon me while I speak rubbish!   Technorati tags: presentations, powerpoint Continue reading Pardon me while I speak rubbish!

I think this article from the Calgary Herald, misses the point, and demonstrates a lack of research.   RBC’s plans contrast with those of U.S. retail giant Washington Mutual Inc., which said last month that it is de-emphasizing branches to focus on the Internet. WaMu plans to close 63 branches in Atlanta and Chicago, for example, in favor of driving customers to cyberspace to open and manage accounts. Source: BankNet 360 – TOP STORY: Oh Canada! RBC Plans Major Expansion WAMU’s decision to scale back in Chicago follows a frenetic expansion plan only to realise the local market is hyper competitive.  Contrast … Continue reading BankNet 360 – RBC Plans Major Expansion

 Wow… its blindingly obvious when I read it, but Tara’s comment from an earlier post perfect sums up the immense gap we Bankers have to cross to really addresses customers real needs.  No further comment required.  Just something to think about how we build into the model for the future Bank. I guess the biggest question is: what do people want from their bank? I mean REALLY want from their bank. Higher interest? Lower fees? Security? Help with finances? Personalized service?  I really do love banking in smaller branches, because the people there know me and are willing to ‘bend’ the … Continue reading The Essence of Banking ….. from a customer

 Sticking with the theme of building the Bank of the Future, this survey validates that while online banking is servicing customers well, it fails to provide for the required emotional connection that drives loyalty.

Convenience channels are diminishing the need to visit branches to conduct routine banking transactions. In fact, nearly one-third of customers do all of their banking outside of the brick-and-mortar facility. While convenience has become a requirement among retail banking customers, financial institutions run the risk of becoming distanced from their customers and, more importantly, losing out on the opportunities that face-to-face contact provides – the chance to impress customers and show appreciation for their business.

Source: CNW Group

This telling comment suggests there is no trust built through online.

“Online banking is convenient, but an excellent online offering cannot
replace a positive in-branch experience,” said Charles Schade, senior director of research at J.D. Power and Associates. “Customers continue to rely on face-to-face contact to build a trusting relationship. That personal interaction cannot be duplicated online or anywhere else but at the bank branch.”

My immediate reaction is to question the survey as being skewed by a Bank that relies on service orientation with extended hours, such as TD Bank for example.  However the survey group shows not apparent indication of skew.

Based on responses from 12,053 Canadian retail banking customers, the study includes all the largest financial institutions – banks and credit unions – in Canada. Across the industry, overall banking satisfaction is determined based on six factors. They are (in order of importance): transaction methods; account set-up and product offerings; facility;  account statements; fees; and problem resolution.

If this is true, and I believe it is, then we must address the emotional connection online if we are to be successful in retaining loyal customers online, and providing a viable alternative.  Meantime branches remain essential.

Here is the complete release.  I have requested the chart, and will post upon receipt.

Continue reading “CNW Group: Banks risk alienating customers”

Just when you thought you were getting it figured out, Reuters, the news organisation, opens a news bureau within Second Life.  The virtual bureau will be staffed by Reuters media correspondent Adam Pasick, who will be known as a virtual reporter called Adam Reuters in Second Life and will cover events as they happen in the virtual world. Says Pasick: “Reuters capability and experience in news and financial reporting will be valuable to the thousands of people who need to make decisions about how they run their businesses inside Second Life. Source: Finextra: Reuters opens virtual news desk in online … Continue reading Finextra: Reuters opens virtual news desk in online world Second Life

Sam, a colleague at work pointed out the ING site that I have been looking for since here: First time home buyer tips from ING I wouldn’t categorise it as “social” but its pretty darned cool and engaging.   Technorati tags: ING, video Continue reading ING: First time home buyer tips

CashEdge have surveyed online banking customers to find something we have always suspected, and now we know.  Its not a huge sample, nor do we know the parameters for choosing them.  The survey of over 400 Web banking customers found that 64% would switch to another institution if it meant gaining access to more robust Web banking capabilities. Source: Finextra: US customers willing to switch banks for online services In other findings: The survey also found that customers prefer Web banking to branch banking. Around 69% of respondents consider visiting their bank branch “a chore” and 88% try to minimise bank … Continue reading Finextra: US customers willing to switch banks for online services