The upside of down numbers
May 12th, 2009 | Posted by Eric SmithOver at the Financial Brand, there’s an interesting compilation of statistics about the financial services industry. At first glance, it shows an industry in a world of hurt:
- Financial services is tied with the tobacco industry, with a positive rating of 11 percent
- 31 percent of bankers haven’t received a raise lately
- 42 percent of banks have seen a decrease in lending
And not only is business down, many potential bank customers just aren’t making it into the bank. 32 percent of adults and 48 percent of Gen Yers have no savings. What’s more, 41 percent of adults give themselves a C, D or F on personal finance knowledge. So banks aren’t popular, and their customers aren’t motivated to give them business.
Is it just me, or does this seem like a big, big opportunity for someone to make banking appealing? Or even cool? For several years, ING Direct has been chipping away at making savings attractive for normal folks, and before the Chase takeover, WaMu had a thriving retail banking business that made banks seem approachable and friendly. But the opportunity suggested by the above numbers seems bigger than that; it’s a chance to engage a huge and disaffected public as true partner and guide through the financial wilderness we’ve all been cast into. Most of us use banks because we need to. What could banks say or do to make us want to?
May 13th, 2009 at 8:50 am
A friend of mine recently switched to Umpqua Bank, after Chase acquired WaMu, her former bank. She’s told me SEVERAL times how much she loves Umpqua. “They know my name. They have cookies.”
Umpqua’s success comes from putting a human face on its business. And who would you trust with your money? A person who greets you and calls you by name? Or a big corporate monolith that hides behind the small print?
May 14th, 2009 at 12:02 pm
I’m thinking of switching to a credit union. I get less of a “we’re in the business of robbing you” vibe from them.