tag:blogger.com,1999:blog-8764541874043694159.post8198037931856896739..comments2024-03-29T07:36:55.897+00:00Comments on Coppola Comment: Supermarket bankingFrances Coppolahttp://www.blogger.com/profile/09399390283774592713noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-8764541874043694159.post-86068246786113803332013-04-10T17:36:41.388+01:002013-04-10T17:36:41.388+01:00Let's agree that even those great consumer-ori...Let's agree that even those great consumer-oriented supermarkets don't do everything well. Here are some of the most stupid & smart things that might make supermarket banking great:<br /><br />http://www.slideshare.net/HansEysinkSmeets/supermarket-banking-10-dos-and-dontsEysink Smeetshttp://www.eysinksmeets.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-2326056821022827752013-02-19T09:53:33.245+00:002013-02-19T09:53:33.245+00:00your most is more technological as well as more in...your most is more technological as well as more informative,Thanks for sharing with us.Amolhttp://www.mypropertystores.com/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-77243810252527979432013-02-06T04:31:28.804+00:002013-02-06T04:31:28.804+00:00In my view turning back the clock to traditional b...In my view turning back the clock to traditional banking isn't any more possible - or desirable - than restoring the high streets of the 1950s. The shopping paradigm still holds for retail banking - but shopping is changing radically, and so must banking. Berita Terkinihttp://conviccionestv.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-35507129551447652372012-12-14T00:17:31.547+00:002012-12-14T00:17:31.547+00:00I think this is a good idea.I think this is a good idea.Witreschourhttps://www.blogger.com/profile/12064899349009021083noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-19419577209909512432012-11-14T05:12:15.187+00:002012-11-14T05:12:15.187+00:00Frances, an excellent commentary. Thank you. But c...Frances, an excellent commentary. Thank you. But culture is a subject not so well understood by almost everyone. It essentially boils down to "monkey see, monkey do". That sounds simple but it is actually hellishly complex. Why are pilots, doctors and engineers (generally) very competent? And why do so many crises caused by incompetence occur in banking? Here is a list http://en.wikipedia.org/wiki/List_of_banking_crises <br /><br />I have thought a lot about how to create ethical, prudent bankers -- this involves some serious behavior modification. There many are ethical, prudent professionals in our midst e.g. pilots, doctors, engineers. We need to replicate their cultural ethos into the financial sector. It can be done and it must be done. This short video gives some ideas for everyone to think about (Hammurabi's Code). There MUST be severe consequences for the affected parties (plural) when fraud or professional incompetence occurs. http://www.youtube.com/watch?v=QKdH_mhJP-E<br /><br />"Miss selling" is fraud or incompetence -- plain and simple.<br /><br /><br />KeenFannoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-68193081117799048982012-11-06T04:17:48.290+00:002012-11-06T04:17:48.290+00:00Excellent article. Supermarket banks provide obvio...Excellent article. Supermarket banks provide obvious advantages to markets, clients and banks. Customers mostly attracted to the supermarket banks because customers can bank at a branch that's open seven days a week until 9 pm, and do their purchasing at the same time. But the trend is mainly driven by what the banks get out of it. If Comparing the traditional branch network then a supermarket network has well thought-out incredible economics. One essential thing about the internet and economical solutions is that it is quicker to store around for the best advantages or loan amount, premium, insurance coverage or whatever. The "supermarket bank" is always better for everything. <a href="http://www.bharatbook.com" rel="nofollow"> Market Research Reports </a><br />Anonymoushttps://www.blogger.com/profile/16975162102390768326noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-22618196462409950392012-11-04T19:38:22.487+00:002012-11-04T19:38:22.487+00:00I'd agree with that. The only way to make prof...I'd agree with that. The only way to make profits in retail banking is by adding value - either cross-selling higher-margin products to core banking customers or providing fee-bearing services. Core banking services themselves are unprofitable and have been so for at least 40 years. THAT's what people aren't talking about. It isn't an elephant in the room, it's a bloody mammoth. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-67821678014203223792012-11-04T19:25:07.346+00:002012-11-04T19:25:07.346+00:00I'm more than happy to have diversity in the w...I'm more than happy to have diversity in the world of banking - more choice can only be good for the consumer. As long as everything is transparent in terms of charges and interest rates then I don't see a problem. However, people need to be aware that there is a trade-off between getting the best value and the service provided. My personal and business banking is done with the Co-op and when I need to speak to them, it's with a call centre in the UK with staff who are empowered to make decisions. Because of this, the rates on their products are not at the top of the best buy table. On the rare occasions that I've ventured into a branch, I've been bombarded with offers of loans and insurance so even the bank that prides itself as being ethical is still out to make money. <br /><br />I'd put it that if you want a truly personal service from a bank but without the hard sell, then you have to accept the premium that goes with it.Blue Burmesehttps://www.blogger.com/profile/02587275123738078966noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-76898105462974147132012-11-04T17:52:33.204+00:002012-11-04T17:52:33.204+00:00No, that's not the point of Vickers. The aim o...No, that's not the point of Vickers. The aim of Vickers is to allow ALL types of bank to fail safely and end bailouts. That's why retail divisions are being required to have separate capital. I wrote about this when I looked at the draft Vickers report (the final version sadly didn't make the aim quite so clear, I suspect for political reasons):<br /><br />http://coppolacomment.blogspot.co.uk/2011/08/setting-up-banks-to-fail-retail-ring.htmlFrances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-1977570523004603692012-11-04T17:37:12.936+00:002012-11-04T17:37:12.936+00:00Isn't the point of Vickers ringfence to preven...Isn't the point of Vickers ringfence to prevent bailouts of investment banks? <br /><br />Isn't the idea that high-risk gambling by investment banks should risk bankruptcy, not risk getting a tax-payer bailout.<br /><br />Retail banks should be protected by the government. Investment banking should not be. Isn't this the issue?Barry Thompsonhttps://www.blogger.com/profile/09769284318856079590noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-26555838471876068092012-11-04T16:31:09.583+00:002012-11-04T16:31:09.583+00:00What do you expect when a Retail Bank wants to be ...What do you expect when a Retail Bank wants to be a "Growth Company" and grow revenue at a multiple of the economic growth rate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-78593578515268460822012-11-04T12:02:48.814+00:002012-11-04T12:02:48.814+00:00This makes a lot of sense. I live in upstate New Y...This makes a lot of sense. I live in upstate New York and have heard terrible tales about Chase branches being completely sales focused and just just trying to shove completely inappropriate products down people's throats. They're always keen for you to use more/get a new credit card. Thinking about it, the make second hand car salesmen look good....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-36775899598647311532012-11-03T16:37:21.989+00:002012-11-03T16:37:21.989+00:00This comment has been removed by the author.Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-63741591012847021692012-11-03T14:40:12.028+00:002012-11-03T14:40:12.028+00:00Water supplies are beginning to compete now more t...Water supplies are beginning to compete now more than ever before...hardly are they being centralised into a monopoly. States, however, are trying to do so, to control without competition the rule over water supplies, but the markets are breaking these attempts. It is nature. Water is too important to society to remain in the hands of a monopolist who cannot compete. Alisternoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-81191720101318254952012-11-02T17:09:21.149+00:002012-11-02T17:09:21.149+00:00I did say in the post that banks moved towards inv...I did say in the post that banks moved towards investment banking and away from core retail banking because they perceived far better profit opportunities in investment banking. But I think the distortionary effect of investment banking at Barclays happened later than the period I'm talking about. As far as I know Barclays only became a major player in investment banking in the last decade. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-76867834952824470052012-11-02T16:37:08.168+00:002012-11-02T16:37:08.168+00:001) Absolutely correct that culture contamination i...1) Absolutely correct that culture contamination is a smaller part of the picture - the main purpose of separating retail/small business banking is that it can then be bailed out in an emergency and the investment bank either allowed to fail, or bailed out on different terms.<br /><br />2) However, having said that culture contamination is a smaller part of the picture, I'd argue that at Barclays at least there is evidence that investment banking distorted the strategic direction of the bank. Automation was used in retail to move towards an "electricity company" model of providing a commodity service and basically competing on oligopoly churn. The key element is that in Barclays there was an assumption that the extra profits available by more thoughtful/flexible retail/SME saving and lending were smaller than those available in investment banking - so we'll put the infrastructure investment into investment banking.<br /><br />Further of course, new models of retail banking will only come into being when there is a reason for the companies involved to invest in it. That they will only do if it is their main line of business. <br /><br />Now will some of them go out of business? My view is probably - because the reality is that ordinary banking that many people need is basically electronic transaction capability and probably belongs in the public sector in the long term. (e.g. I need an account with a debit card and bill paying interface. There's no reason I should get my savings or loans from the same institution. There's no meaningful money to be made from an account with a debit card and bill paying interface - at the same time it's pretty much a basic for functioning in society - odds are it will end up a regulated monopoly like water supply.)Metatonehttp://www.eurotrib.comnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-30606361618762339952012-11-02T15:55:35.905+00:002012-11-02T15:55:35.905+00:00I agree with this analysis, the separation of reta...I agree with this analysis, the separation of retail from investment banking is not the point, and was not the cause of Northern Rock having problems. I went into my local HBOS branch in Keighley, Yorkshire a few years ago to get some advice about investments and ISAs. The sales person went through various options, including what sort of level of risk I would like. I then asked him if he invested in any of the products provided by his bank. He confided in me that he made a lot of money doing on line poker, and was going large on buy to let, and did not use any of the bank's products.Simonnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-52735437794402981522012-11-02T06:37:27.087+00:002012-11-02T06:37:27.087+00:00"The changes must come from within" is t..."The changes must come from within" is the single most important point about this topic, I dare say. Funds should be accumulated & deployed to install & pay 1 CEO who's expected to perform exceedingly well in terms of morality, and also smart enterprising. Then, if he or she fails, it should be built into the contract that at any point in time the supervisory board can cancel the contract. Repeat process until one good CEO is found. Then advertise that CEO.Alisternoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-27930801366150722382012-11-01T23:32:32.832+00:002012-11-01T23:32:32.832+00:00The shopping model these days is a mix of small ar...The shopping model these days is a mix of small artisan shops charging relatively high prices for premium products and services, huge supermarkets indulging in vicious price wars, "Poundland" shops providing basic products at rock-bottom prices, charity shops, internet shopping, television shopping and online auction houses. There has never been such diversity. This level of diversity is I think what we should be looking for in retail banking, as well. <br /><br />In my view turning back the clock to traditional banking isn't any more possible - or desirable - than restoring the high streets of the 1950s. The shopping paradigm still holds for retail banking - but shopping is changing radically, and so must banking. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-78837413455235095552012-11-01T22:58:50.998+00:002012-11-01T22:58:50.998+00:00just as we are beginning to rediscover the benefit...<i>just as we are beginning to rediscover the benefits of small high-street shops providing a personal service, so we also need to rediscover the benefits of small bank branches providing a personal service.</i><br /><br />I'd question nowadays why you need small bank branches providing a personal service when you can do pretty much everything, apart from deal with large amounts of cash, online. I don't want to have to deal with bank staff as I've better things to do with my time. Others may want a more personal service and I'm happy for them to pay for it.<br /><br />One important thing about the internet and financial services is that it is easier to shop around for the best savings or loan rate, annuity, insurance policy or whatever. The "supermarket bank" is unlikely to give me the best deal for everything.Blue Burmesehttps://www.blogger.com/profile/02587275123738078966noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-66489468290742578172012-11-01T17:01:36.021+00:002012-11-01T17:01:36.021+00:00My small local branch of HSBC is now a cheese shop...My small local branch of HSBC is now a cheese shop. They tried to sell me some pet insurance....devonseaglasshttps://www.blogger.com/profile/02637463423116171963noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-4282978828812491312012-11-01T16:14:23.221+00:002012-11-01T16:14:23.221+00:00I agree we need to know what to change in order to...I agree we need to know what to change in order to make the correct changes in banking. Having had a career in the financial services industry myself I endorse your observation that separating investment banking from the retail banking sector will not solve the problem of the gross miss-selling of financial products which has made so many banking customers victims.I wrote this post in an effort to add my voice to those who champion change. http://lifeafterdebts.blogspot.co.uk/2012/10/placation-and-platitude.htmllifeafterdebthttps://www.blogger.com/profile/00542395196708736628noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-21266604665320956172012-11-01T14:35:18.101+00:002012-11-01T14:35:18.101+00:00Very interesting - I worked at HSBC with a lot of ...Very interesting - I worked at HSBC with a lot of ex-Midland staff for a while. Your post explains some of what I saw.Matt Greenhttps://www.blogger.com/profile/02053131888225417512noreply@blogger.com