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February 07, 2013


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Comparing banks to the net companies is fun, but banks aren't structured that way. All of the net powerhouses grew on stock promise and geek fervour. Banks however are shareholder-owned conservative organisations where bonuses rule inside and regulators rule outside. It's unlikely that you'd get change in a place where bonuses come from conventional trading activity, and although outsiders know the word 'change' is it anymore than lip-service? Shareholders will sell on percentage point, and regulators want change-but-no-change.

Chris Skinner

Wrong comment Iang

I am not comparing banks WITH net companies. I am saying that a net company that can make banking as simple as the other net companies have made shopping, entertainment and other digitised goods and services will disrupt and replace the traditional bank model.

Of course no bank will change if they don't need to, as making profits from traditional means is the fine as long as it lasts.



You are spot on. Of the several principles of customer experience, "make it easy" is fundamental - organisations that get that right have a good chance of winning. Established organisations design service around internal products, processes and systems not the customer - that's too hard. If the barriers to entry were lower, then like other sectors, banking is ripe for disruption.


I would like to add a comment, that might give Lang a chance to focus Chris article from another perspective
What I get from Chris message is: frictionless

Is a bank's customer feeling some "friction" when defining with the bank a Letter of Credit for the International Trading her/his company is doing?

Is a bank's customer feeling some "friction" when looks for moving some amount of money from her/his Company's account to another Company's account in another bank, in other currency, in other country?

I am sure, there are many more examples of situations where the customer is getting that kind of feeling: "friction"


The challenges to getting established financial institutions to change are certainly many. But this post is spot on in warning that if banks/credit unions can't figure it out - someone else (tech companies) will.

And plenty of banks are interested in solving this problem before their competition does. We're currently fielding a study on this very topic http://www.peoplemetrics.com/blog/about-the-2013-banking-customer-experience-trends-study/

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