BVS BlogJanuary 29, 2018 Help is on the Way (Part I)
What do Blockbuster Video and the Rock Island Railroad have in common with your bank? More than you might think.
Not all of you may have heard of the Rock Island Line, but enough people rode it that there was a famous song recorded many times over. And everyone remembers going to Blockbuster Video with the family. What those two companies had in common was the failure to realize what businesses they ultimately were in — transportation and entertainment — and they slowly died a death of a thousand cuts.
At the turn of the 20th century, railroads were the dominant form of transportation. That dominance was short-lived, however, as these companies failed to recognize the impact of cars and airplanes. By the time they began to act it was too late — the likes of United Airlines and Ford had already taken most of their customers. We all know how Blockbuster Video, the once dominant video rental chain, was put out of business by Netflix and a host of other streaming services; and it's not difficult to see how digitalization is affecting other industries including photography, retail and even taxis.
Banking is different though in that the internet can be a value add instead of the end of the line. Over a series of posts, we'll look at how your customers can benefit from complimentary online services; how technology can foster deeper connections with customers whether they are a mile from a brick and mortar location or on vacation half a world away and how you can manage this efficiently.
Consumers today have much higher expectations than they did even a decade ago, mainly because there is more choice. While most people see a brick and mortar branch as proof that their money is safe, many don't actually set foot in their bank.
The challenge today is how to replicate the old-school relationship building experienced during branch visits without forcing your customers to physically go to the branch. It's not just about embracing new technology; it's about embracing new ways of maintaining and growing your business.