When the Smoke Clears, the User Experience Will Be the Key to Success in the Banking Industry
When the Smoke Clears, the User Experience Will Be the Key to Success in the Banking Industry
After the dust settles, commercial banks will emerge atop the ash heap of the financial industry—according to the Journal. This, in turn, should alter the way the banking industry goes about its business, abandoning the riskier investment banking model for the more conservative, traditional commercial banking model. And as the pendulum swings more towards commercial banks, commercial banks, in turn, will be competing with each other for more and more customers.
Up until 1999, the Glass-Steagall Act maintained a solid wall between commercial banks and investment banks. Glass-Steagall was a child of the Great Depression; to protect depositors, it prevented commercial banks from participating in investment banking. So commercial banks concentrated instead on taking deposits and make loans, earning conservative returns under heavy regulation by state and federal governments. Investment banks, meanwhile, were not subject to the same regulations as commercial banks. And since they did not take deposits, they developed other forms of creative capital-gathering to make loans and investments. Thus, they were more susceptible to market variations and interruptions than their commercial bank counterparts, but the profits they could reap were staggering. In 1999, Glass-Steagall was repealed, and the wall between commercial banking and investment banking disappeared.
As commercial banks began to compete with investment banks, investment banks—lacking the deposits their commercial banks could rely upon—developed more and more creative financial products in order to keep pace in the new marketplace. But then, the bubble burst; the housing and credit markets came tumbling back to Earth, and these creative financial products became worthless. With no real equity to fall back upon, the investment banks were left holding the bag, and began failing. Commercial banks, with the equity provided by their deposits, were on firmer ground.
But even as commercial banks emerge victorious in the banking industry, more and more of them will now have to compete for deposits from the same customers in order to remain competitive. In the digital age, how can commercial banks come out on top? Technology.
Broadband, WiFi, and mobile computing have made online retail banking not merely a nice feature, but a hardcore requirement. Commercial banks that don’t offer their customers an engaging, holistic online banking experience, including the ability to pay bills, will soon find themselves behind in the digital age. As more and more banks compete for customers in the digital age, the user experience of their online offerings is going to be the key to success.
When the Smoke Clears the User Experience Will Be the Key to Success in the Banking Industry - To learn more about this author, visit Robert Pothier's Website.
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According to the Wall Street Journal this week, the recent failure of investment bank Lehman Brothers Holdings Inc., along with the collapse and subsequent take-over of Merrill Lynch by Bank of America, represents the greatest restructuring to the banking industry since the Great Depression. Out of all this confusion, who’s poised to come out on top?
After the dust settles, commercial banks will emerge atop the ash heap of the financial industry—according to the Journal. This, in turn, should alter the way the banking industry goes about its business, abandoning the riskier investment banking model for the more conservative, traditional commercial banking model. And as the pendulum swings more towards commercial banks, commercial banks, in turn, will be competing with each other for more and more customers.
Up until 1999, the Glass-Steagall Act maintained a solid wall between commercial banks and investment banks. Glass-Steagall was a child of the Great Depression; to protect depositors, it prevented commercial banks from participating in investment banking. So commercial banks concentrated instead on taking deposits and make loans, earning conservative returns under heavy regulation by state and federal governments. Investment banks, meanwhile, were not subject to the same regulations as commercial banks. And since they did not take deposits, they developed other forms of creative capital-gathering to make loans and investments. Thus, they were more susceptible to market variations and interruptions than their commercial bank counterparts, but the profits they could reap were staggering. In 1999, Glass-Steagall was repealed, and the wall between commercial banking and investment banking disappeared.
As commercial banks began to compete with investment banks, investment banks—lacking the deposits their commercial banks could rely upon—developed more and more creative financial products in order to keep pace in the new marketplace. But then, the bubble burst; the housing and credit markets came tumbling back to Earth, and these creative financial products became worthless. With no real equity to fall back upon, the investment banks were left holding the bag, and began failing. Commercial banks, with the equity provided by their deposits, were on firmer ground.
But even as commercial banks emerge victorious in the banking industry, more and more of them will now have to compete for deposits from the same customers in order to remain competitive. In the digital age, how can commercial banks come out on top? Technology.
Broadband, WiFi, and mobile computing have made online retail banking not merely a nice feature, but a hardcore requirement. Commercial banks that don’t offer their customers an engaging, holistic online banking experience, including the ability to pay bills, will soon find themselves behind in the digital age. As more and more banks compete for customers in the digital age, the user experience of their online offerings is going to be the key to success.
When the Smoke Clears the User Experience Will Be the Key to Success in the Banking Industry - To learn more about this author, visit Robert Pothier's Website.
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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