For the both of them, this past year has been one of changes. There is a sense of distrust and even betrayal with big financial institutions and the government, who were expected to have foreseen the crisis or made the right choices to correct it. There has been a shift in attitudes—Dan, who invested heavily in stocks five years ago, would now rather put aside a large cash reserve and make conservative investments. Emily has had to shift the responsibility for her finances from her husband to a financial planner, and feels she’s finally taken control of her expenses. She, too, would like to “keep (her) nose clean,” and “keep cash”. Dan has been keeping a healthier lifestyle and lost two inches off his waist. Emily had such an exhausting first week at work she took my call lying down, but she says she’s never felt more productive in her career. They have both learned to adapt and succeed amidst the changes in their lives.Thought: Despite these tough times and the personal upheaval in their lives—or perhaps because of it—they are resilient. In an environment of uncertainty, banks want to be stable and secure. But the consumers aren’t looking for comfort—they’ve learned from past mistakes and are already moving on.
Opportunity: Instead of just being reliable, be the bank that responds to and supports your consumers’ endeavors. It’s not a time for risk but a time for new directions—be the bank that takes them there.
More comments from Mark Miller, Executive Strategy Director at Team One:
ReplyDeleteI think there are some really interesting beginnings here. The notion that affluents have had to go through change seems absolutely right (it's a fact). In past recessions, affluents and lux categories have tended to do far better than 'the average person' or more mass categories. The idea that they are learning/adapting to change is important and matters a lot too. Reminds me, a little, of the famous quote: 'Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime.' I think banks have the opportunity to help customers go through change and to teach them how to adapt. Yes, there is a built in distrust of organizations. But, at the same time, I think there is a broader acceptance of 'people wanting to help one another.' In the context of what a bank can promise, I really do like the idea of standing for 'financial fitness.' It's another way to bring to life the 'teach a man to fish' sentiment. Effectively, I think a good bank has the skills to help its customers learn how to take better care of their money. They can't promise they'll make you money. But they can promise to learn your goals and give you a program to get back to being financially healthy over time; at least to a healthier state. And, just like going to the gym, you sort of get out of it what you put into it. This thought starter needs work, but I bet there's an idea in here somewhere.