Slate’s article on America’s Microbank Problem was a hack piece of journalism, written simply to call attention to the author and publication. There is one argument I can see making to justify the claim that there are too many banks in the US: Supply outstrips demand.
There’s a new type of marketing that’s beginning to gain traction: Activity-Based Marketing, or marketing within the context of an activity being performed by a customer or prospect. It’s key to creating and capitalizing on the new mobile moments of opportunity.
Strategic planning is a joke at many FIs because “planning” is the last thing they need. Lots of the verbs used to describe strategy fall short, as well. I’ve yet to find a firm that has successfully “formulated” strategy.
If I had a nickel for every time the word “disruption” was mentioned in a blog post, article, or conference in the past 12 months, I’d be richer than Warren Buffett. If I had a nickel for every time the word “disruption” was appropriately used, I wouldn’t even be able to afford the ukulele that Buffett’s playing.
The reality for financial start-ups is that while blazing a new trail through an uncharted forest, sometimes you run into a brick wall. You can cut down a tree, but you can’t cut down a brick wall. PerkStreet hit a brick wall. And the sign on the wall read “Caution: Consumer Apathy About Financial Services Ahead.”
The next wave of banking competition is competing on performance. That is, who best helps the customer manage and improve their financial lives — and not who has the best rates or fees, or who claims to have the best service. To compete, the industry needs to develop a standardized FinScore.
There is no clear definition about what PFM is (and isn’t). There is no common understanding — among bankers or consumers — about what PFM is. Bankers need to redefine their concept of PFM, and expand the definition to include a wider range of “PFM” capabilities.