As an ex banker (for over 15 years) I am always interested what is going on in the banking industry. Because that is so, I always break out in tears when I pass a bank branch. I cannot think of another industry that has neglected marketing, pr and the entire self representation as much as banks have. Looking at it, if you take the logo off, you would think they are a all the same bank. Marketing and pr from the consulting handbook and the staff still forced into a dress code that reminds you on the 50’s and 60’s. All that’s missing is that the men have to wear a hat.
The banks are fighting the same fight for many decades. Market share is key. When you look at it, the numbers are stagnant for the same time period. Growth comes from acquisition, nothing else. The new customers are walking in the front door and the “old” customers walking out the back door. It’s like a cat chasing its own tale. And if there are major changes, then they are the result of “events in the market”, if you want to call the financial crisis and the “belly ups” and “almost belly ups” that way.
Banks ask their customers on a regular basis how happy they are. The results show that people are happy when the bank is able to execute online transfers accurately and someone is greeting them at the door when they enter the branch. Awesome.
The reason why there is no major change in the industry is plain and simple: Everyone is operating after the same consulting handbook. Regulation is blamed and used to cover up inability to make changes. Innovation as it is present and happening in all other industries is completely invisible. That it doesn’t have to be like that has been proven by the exceptions in the industry. Yes, there are a few. While they are not perfect, they have made an impact and are hopefully able to influence the rest of the industry to come up with similar ideas. As an example I want to mention ING Direct with their “Internet Cafe Branches” and Ally Bank for their commercials. Looking at the big banks in the US, BBVA and Capital One is coming to mind. They have some activity going on that might lead the change in the retail banking world.
Tell me what you think about the retail banking world. Am I to negative, or is the above description accurate? Your comments are appreciated.