Comments on: How will people use U.S. banks when this financial storm passes? http://futurebanking.bankofamerica.com/people-banks-financial-storm-passes_402 Future Banking Blog Sun, 22 Nov 2009 23:47:37 +0000 http://wordpress.org/?v=2.6.3 By: Kathryn http://futurebanking.bankofamerica.com/people-banks-financial-storm-passes_402#comment-165 Kathryn Sat, 07 Mar 2009 18:21:13 +0000 http://futurebanking.bankofamerica.com/?p=402#comment-165 There is banking and there are banks. Banking and Financial services, through regulatory changes, have come to be synonomous. If we step back and consider something that is more akin to the old "savings and loans" we'll see that there's a whole part of the banking structure that still exists within this more narrow costruction -- inclusive of Credit Unions.  Small, often local associations often with some affinity relationship (fire/police, etc). In these institutions savings prevails. Business is won on rates of return and customer services. And the National Credit Union Association guarantees as FDIC guarantees for "banks." I ponder the concept of expansion of banks: One stop shopping and "relationship bundles" often seem to be a great idea for corporations who are seeking to expand for their shareholders. Trust, safety, assurance, and a good rate of return are necessities for customers. I also ponder the fact that "Local" (versus national or global) has somehow become a dirty word. While I travel extensively, how many people live outside a 30-50 mile radius of their home? How many people expect to enter "their" bank on a trip. What happened to travelers checks anyway? And isn't that one of the advantages of a credit card is for? Banking, in the future as in tomorrow, can't simply think about BANKS. It has to consider changes in the industry. Inclusive of Credit Unions. Savings and Loans. The cash kept out of the system and shipped abroad or kept under matresses. There is banking and there are banks. Banking and Financial services, through regulatory changes, have come to be synonomous. If we step back and consider something that is more akin to the old “savings and loans” we’ll see that there’s a whole part of the banking structure that still exists within this more narrow costruction — inclusive of Credit Unions.  Small, often local associations often with some affinity relationship (fire/police, etc). In these institutions savings prevails. Business is won on rates of return and customer services. And the National Credit Union Association guarantees as FDIC guarantees for “banks.”

I ponder the concept of expansion of banks:
One stop shopping and “relationship bundles” often seem to be a great idea for corporations who are seeking to expand for their shareholders. Trust, safety, assurance, and a good rate of return are necessities for customers.

I also ponder the fact that “Local” (versus national or global) has somehow become a dirty word. While I travel extensively, how many people live outside a 30-50 mile radius of their home? How many people expect to enter “their” bank on a trip. What happened to travelers checks anyway? And isn’t that one of the advantages of a credit card is for?

Banking, in the future as in tomorrow, can’t simply think about BANKS. It has to consider changes in the industry. Inclusive of Credit Unions. Savings and Loans. The cash kept out of the system and shipped abroad or kept under matresses.

]]> By: Shep Hyken http://futurebanking.bankofamerica.com/people-banks-financial-storm-passes_402#comment-107 Shep Hyken Wed, 28 Jan 2009 14:36:20 +0000 http://futurebanking.bankofamerica.com/?p=402#comment-107 It is not just how customers will use banks, it is also who.  During these tough economic times customers will form opinions about how they are treated by anyone they do business with.  This is an opportunity to show how good a bank can be to their customers.  Your last lines sums it up.  (As John said on the program, banking is about relationships and meeting the needs of our customers. At the end of the day, that’s one thing that won’t change.) However, are all of the branches, managers, employees, etc. in alignment?  Do they understand and know how to build the relationships you talk about in your post?  If so, then there is nothing to worry about. If not, there is the risk of lost business. It is not just how customers will use banks, it is also who.  During these tough economic times customers will form opinions about how they are treated by anyone they do business with.  This is an opportunity to show how good a bank can be to their customers. 

Your last lines sums it up.  (As John said on the program, banking is about relationships and meeting the needs of our customers. At the end of the day, that’s one thing that won’t change.) However, are all of the branches, managers, employees, etc. in alignment?  Do they understand and know how to build the relationships you talk about in your post?  If so, then there is nothing to worry about. If not, there is the risk of lost business.

]]> By: Annalie Killian http://futurebanking.bankofamerica.com/people-banks-financial-storm-passes_402#comment-24 Annalie Killian Wed, 03 Dec 2008 21:02:29 +0000 http://futurebanking.bankofamerica.com/?p=402#comment-24 Jeff, a great and thought-provoking post. I dont know about the US, but in Australia, most financial institutions abandoned youth savings programmes and school partnerships years ago as unprofitable and too much hassle for the returns. Banking has not had a great social responsibility focus as a core value for a long time now. I am wondering how people ever learn and develop a savings ethic?  Could it be that its similar to how a work ethic and an exercising ethic is developed?  That kids who don't see this at home as they grow up, repeat the patterns of their upbringing? So if our current generation of parents are the debt creators, how will those same parents magically turn into savers? and how will it transfer to the next generation - a generation that is already spending all their pocket money on mobile phone credit and itunes music? Is it possible that as bankers, we have to reach them on their own terms...through their ipods with YouTube style video clips, and through their mobile phones with encouraging SMS text messages when they make regular savings deposits?  Jeff, a great and thought-provoking post. I dont know about the US, but in Australia, most financial institutions abandoned youth savings programmes and school partnerships years ago as unprofitable and too much hassle for the returns. Banking has not had a great social responsibility focus as a core value for a long time now. I am wondering how people ever learn and develop a savings ethic?  Could it be that its similar to how a work ethic and an exercising ethic is developed?  That kids who don’t see this at home as they grow up, repeat the patterns of their upbringing? So if our current generation of parents are the debt creators, how will those same parents magically turn into savers? and how will it transfer to the next generation - a generation that is already spending all their pocket money on mobile phone credit and itunes music? Is it possible that as bankers, we have to reach them on their own terms…through their ipods with YouTube style video clips, and through their mobile phones with encouraging SMS text messages when they make regular savings deposits? 

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