A Clear Eye.

I'm not sure I'd put Amazon in the category of companies that have reduced the emphasis on people and increased emphasis on choice, etc. When I go to the Amazon site, "they" greet me by name and make useful recommendations based on what they know I like--it's personal. When I look at a book, I see reviews by other people interested in the same topic, and I could write a review, too. I even start to recognize some reviewers--I feel like I'm part of a community.

At the same time, of course, Amazon offers a staggering amount of choice and emphasizes low price. Maybe they're in a middle ground, and maybe banks could aim for the same combination of tailored experience and efficiency.

Since we increasingly interact with banks online or through ATMs, it would be interesting to see if banks could recognize us and respond based on our past transactions. Right now, I'm no one to my ATM. It recognizes my PIN, but it doesn't respond with my name. And even though I make the same transaction every time, the system has no memory of me. I have to work all the way through the menus again. It seems like a small gripe, but when it's the main way I interact with my bank, it has a big effect.

Great input Cathy! And I agree that Amazon is a wonderful example of using technology to personalize customers' experiences, as well as connect them with like-minded people.

To clarify a bit, when I wrote "reduce the emphasis on people," I meant face-to-face interactions with employees.

Thanks for the inputs!

Cathy, I agree with most of your ideas. In my experience, Banks and Financial companies in general are not built based in principles of community building. Normally their guiding principles are inspired by power. I know there can be different kinds of experiences. If you are a millionaire your Bank will treat you like a king but the common people are in a position of submission. Yes, yes, submission. I feel this whenever i talk to a seller of financial products. The last experience I had was with a girl who told me that they wanted to help me and could improve my interest rates and other conditions. But when I tried to deal with this seller as if she had real interest in me, she inmediately told me that my proposition was imposible because the bank´s policy couldn´t be changed. And I told her: O.k. Please don´t tell you want to help me because what you are offering me is to stick to your own conditions and you are not considering my needs and personal situation. She just could say. Well, yes, but that´s our Bank´s policy.

Tom, although I have limited experience in working with financial institutions, what occurs to me as being a successful approach is that taken by ING Direct. Rather than creating an atmosphere of comfort (ala Starbucks - home away from home), they have concentrated on what financial consumers want - personal empowerment (similar to what Felix mentioned).

There's a trend among financial institutions to assist customers in escaping the old institutions of yore. In other words, "Look at the poor service our competitors have given you over the years. You do not have to put up with that anymore. Here's something new. The power is in your hands, etc...."

They really harness the negative experiences almost everyone has had with their financial institution.

Have a great trip!

Have a great trip Tom

My opinion is ...

I simply cannot remember the last time I had to go to a bank to do anything of real importance that I could not do online - other than pay in real money - cash.

I think things are changing dramatically and the best banks and financial institutions need to make sure they can add extra value to get my business.

Frankly since I set up my own business in October 2004 as far as my business account is concerend I have yet to speak to a human being after four months operating!!!

It is fantastic to be in control online.

I guess they need to be very smart about finding out themselves what ther human face should be!!! ..God only knows - I certainly don't.

If I never meet another bank official then I guess I would be delighted.

Take care Tom - great question

Trevor

Tom:

Both strategies can be succesful. Like Trevor, I may step foot into a bank maybe once a year. I believe the really succesful companies must segment and find a way to deliver different value props to these two unique segments of the market.

Two succesful financial firms in the past several years have been Edward Jones (IMO a great branding story) which has a "folksy" small-town feel good approach to providing financial and investment services and advice. On the otherhand look ant ING Direct offering 5x the yield on a money market account. Both have been very succesful. My banking and investment business doesn't go to anyone firm because there is no firm that does it all well. However, at the end of the day I would like to find a firm that can give me a little bit of everything - if that organization is out there someone let me know.

Safe travels...

i think its interesting that people discount the need for branches by saying that they "only walk in there once a year." this may not be a cause but an effect. it is the RESULT of bad banking practices not from lack of necessity to speak with a human being related to your financial needs. there is a real gap in the market right now for financial planners versed in the "double income, two kids, want to retire and pay for college" set. do they call american express? lehman brothers? or their local bank of america? the answer isn't clear but could be if banks got their shit together. i know wainwright is attempting this community based philosophy by reaching out to gays and lesbians and local groups. but one of my students just told me the other day that is a crappy place to work. so they need to get both sides of their house in order.

The lack of personalization at the ATM is a security policy.

The less information is given by the bank when you enter a stolen pin from a stolen card, the better.

Further, "community" when applied to financial institutions yields opportunities for social engineering, id theft, etc.

Sorry to pour cold water here, but the banks have it right this time. They should give away as little as possible info, subject to getting the job (transaction) done.

Gordon
Formerly CTO/CIO/CSO of a financial institution