The Bankwatch

Tracking the consumer evolution of financial services

First get the strategy figured out …..

Ron is dead on here. First comes business strategy, then comes channel strategy. He quotes the perfect opposites in that regard, Edward Jones, and ING.

… … it’s because many banks don’t have a coherent business strategy. Not because they don’t have a channel strategy.

Source: MarketingROI

Banks are all chasing online banking superiority, in a no-win arms race situation. No one will ever win an arms race. In fact everyone participating will actually lose. When I wrote the other day about ‘niching’ [pardon the new verb] I didn’t explain arms race in a banking context.

The arms race was personified during the days of Gomez, when Banks watched the survey based on numbers of functions rated, and immediately set out to address their shortcomings based on that survey. No-where in that context did business strategy enter the picture. For example, ING would view online banking functions very differently than Edward Jones.

Back to Ron’s point. Online Banking is just another method of interacting with your customers. If its important to your strategy, do it well, and do it right. But first check your strategy.

Methinks this will require more discussion. As simple as it sounds to compare Edward Jones, and ING, they happen to have clear strategies. The rest, all sound the same.

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Written by Colin Henderson

June 14, 2007 at 20:35

Posted in Banking Strategy

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