Futurism and financial services

by Anthony Ryman

From micro-financing to person-to-person lending, there is a paradigm shift taking place in the world of finance. The power in ‘bankingland’ is increasingly shifting towards consumers as they reassess how they want to spend their money and what channels they wish to use for advice and investment. The power of online communications is allowing people to network much more closely and find products and services more aligned with their thinking, often by word of mouth and recommendations.

The recent turmoil resulting from the credit crunch in world markets is arousing interest and not a little emotion among trend-spotters and consumers as well as new products and services. The ineptitude and greed of most banks involved in the housing loans debacle and their enormous billion dollar losses have aroused anger and the beginnings of a backlash among consumers. “Why should we pay for their mistakes?” can be heard on several commentators’ lips as the Federal Reserve guarantees US$ 29 billion of taxpayers money to save Bear Stearns.

The billions and billions that the likes of Citibank and UBS are setting aside to offset these losses will only increase the consumers’ financial burden by way of increased fees and charges.

They commissioned original research in Qatar in 2007 by polling group YouGov Siraj who found that 45% of respondents would consider changing their current banking arrangements. The bank is looking to bring a new approach to banking in the region in response to these research findings and customer needs. One would hope that this would involve easy-to-understand products and an approach which fits into people’s lifestyles and not the other way around.

We have a melting pot of activities in this region: the rise in importance of Islamic Banking year-on-year, increasingly affluent consumers embracing new technologies like mobile marketing, co-branded cards (e.g. IBQ and Virgin), women power in financial services (e.g. Johora from Dubai Islamic Bank) and alternative distribution channels e.g. mobile banking. While these all bode well as the market becomes increasingly fragmented and niche oriented, the bank that appeals to a more pro-active, endearing, lifestyle and service-led approach will develop not only market share but also, potentially, icon status where the brand is more than just the mark on the cheque book or statement and finds its way into the hearts and minds of consumers as a standard-bearer and a ‘shorthand’ for self expression.

It’s all about trust. Trust stems from understanding and acceptance and it breeds confidence and belief. It allows for openness and communication. Trust builds powerful brands.
Banks need to demonstrate that they too are people, like you and me, with a clear vision of what it is that we, as users of financial services, aspire to and need. And then develop products and services that add value to our lives, preferably at little or no added cost.

Think relationship and not transaction. Think tangible service and benefit and not price or jargon. Think brand value – it builds brand equity. Trust it.

As we say here at grow “growing your brand is growing your business”.