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Scooped by Vicki Kossoff @ The Learning Factor
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To an Analog Banker in a Digital World

To an Analog Banker in a Digital World | Business Brainpower with the Human Touch | Scoop.it


There is a tale I like to tell people in the banking industry about change. According to a family legend, one of my mother’s aunts was Henry Ford’s neighbor in the early 1900s. Her husband was a successful businessman, and one day Ford asked them to invest US$100 in his Model T automobile. This was equivalent to about $18,000 today—not a small sum to give a neighbor with a harebrained idea. My great-aunt and her husband evaluated the opportunity for some time, and then told Ford no. They sincerely believed no one would ever buy a car; there was simply too much infrastructure supporting traditional means of transportation, and consumers were clearly quite comfortable with their horse-drawn wagons. In other words, they made a rational business decision, based on observations of consumer behavior, the business environment, competition, labor, and demand.

Vicki Kossoff @ The Learning Factor's insight:

What happened to recorded music is about to happen to you. But only a few banks are making the right moves from branches to online services.

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Scooped by Vicki Kossoff @ The Learning Factor
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Retail renaissance - The internet and mobile phones are at long last turning boring old retail banking into an exciting industry

Retail renaissance - The internet and mobile phones are at long last turning boring old retail banking into an exciting industry | Business Brainpower with the Human Touch | Scoop.it
“IF YOUR BANK could start over, this is what it would be,” trumpeted the marketing campaign for the launch in 1999 of Wingspan, an internet bank. The following year the bank was gone. In September 2000, a few months after the dotcom bubble burst, it was absorbed by its boring American bricks-and-mortar parent, Bank One (now part of JPMorgan).

For all the high hopes that the internet would transform banking, most other internet banks launched around that time met with a similar fate. Citi f/i, an online bank started by Citigroup, was folded back into its parent in 2000. NetBank, an American pioneer of internet banking, soldiered on for longer than most but was shut down by banking regulators in 2007. On the other side of the Atlantic, Egg, Britain’s first stand-alone internet bank, shook the market in 1999-2000 when it gained more than 2m customers within months of starting up. But within a few years it, too, had in effect disappeared, its customers having been sold first to Citigroup and then to Barclays and the Yorkshire Building Society. It was an ignominious end to a bold experiment in online banking that had caused palms to sweat in banking centres around the world.
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