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Will a courageous bank please step up and lead?
Posted on January 8th, 2009 by and currently 8 commenting.The economy sucks. I’ve seen it affect friends who have lost jobs, clients who are losing sleep over their businesses and well, to quote a wise friend, ‘If anyone tells you they aren’t hurting at all, they’re lying.’ But the one interesting thing I have been surprised by (in awe of really) is the deeper, kinder conversations we’re having with each other about money these days. I for one, as a person who spends most of my days talking about the nuts and bolts and finances of the work we do (and how we charge for that work) have changed my language and tone internally, as well as with clients and potential clients.
Last night on the way home I took the long way, in order to stop off at Whole Foods. It was late and dark. And for a while I drove in complete silence. Then I turned the radio on and I happened upon this talk show, don’t laugh… the Dave Ramsey show. You know one of those shows where folks call in with their financial woes and the person on the other end gives you advice.
I have said this before, but I don’t believe in personal debt except for the home you live in and even that needs to be in balance with what you can really afford. I don’t believe you should finance your cars or vacations or toys. Period. If you don’t have the money, you don’t have the money. Well, seems Dave feels the same way about that. But what struck me last night was how very kind he was to the folks calling in. One person called from Chicago who had gotten on a great path to saving (thanks to Dave) and then lost his job that very day. Dave asked what skills he had and he found out he was a master electrician. His advice, get in your car and go to Houston, where they need you. Things will get better for everyone in the spring and perhaps you can see your journey as a great four month adventure. They need you down there. Wow. That just struck me as such a sensitive and right thing to say. ‘They need you down there.’
So where am I going with all this sentimental rambling? Well, if you hang out around here at all, you know this: Brains on Fire believes and works hard to help companies discover the shared passions between a brand and its customers. We believe great organization create and support movements, not advertising campaigns.
I personally believe we are going to see a movement bubble up in this country to ‘live better by living within your means’. And it will be without a doubt, one of the most amazing outcomes of our current struggle.
So, who will love and support and add valuable knowledge to those conversations? Could there be a bank, who rethinks everything they do in an effort to support this new way of thinking and living? They have valuable knowledge to share for certain, but do they have the courage and compassion to really put the customer first (like so many claim in their traditional advertising)…and can they make a reasonable and fair profit at the same time?
Maybe it’s some other type of organization that will lead the way? Credit unions or insurance companies, perhaps. But someone should definitely step up the plate to lead and share and guide in my humble opinion. There is a huge opportunity for a brand to gain trust and love and support for leading the charge in a meaningful way.
What do you think?
8 Responses to “Will a courageous bank please step up and lead?”
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Justine January 8th, 2009 at 8:54 am
Timely post Robbin. Just when is it that “Living within your means” became a foreign concept in this country?
My grandfather never once financed a car. And he built his house himself - okay that’s maybe not typical. My other grandfather bought his house only after the market completely bottomed out and he could get a total steal. Both of them, of course, remember the days when their moms were hoarding sugar and flour. Both of them had to quit school in grade 3 to work during the depression.
I’m grateful that I inherited a bit of this ’stinginess’. Still I can not afford to buy a car outright. And buying our house would not have been possible if we had to put 20% down.
I think part of it is that income levels just haven’t risen to the same degree as prices for other things. And when you’re watching housing prices rise 5% a year - faster than you can possibly make headway on a down payment, what do you do?
I’m betting that you’re right - that this “correction” will be more than just resetting housing prices. That people will have to start making real sacrifices in lifestyle. My kids each got 40+ THINGS for Christmas. EACH. Not from us. But still. I don’t even have a place to put those things. What will break this cycle?
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I’ve been wondering this same thing. I’m not too far out of college, making my first big purchases, and I don’t know what I would do without my credit union (University Federal Credit Union). They’re the most wonderful banking resource. Their educational materials are superb. When you call or go in, the person you talk to stops what they’re doing and actually gives you their attention, takes the time, and answers your questions. I have zero interest in ever going back to one of the big banks. As soon as my credit cards are paid off, I’m done with them.
I’m moving out of state in a few months, and one of the things I’ll miss the most about Austin is the place I do my banking. No, I don’t work for them. I’m just incredibly grateful for the hand-holding that got me from being completely taken care of by mom and dad to completely independent.
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Kathie January 8th, 2009 at 9:53 am
Great post Robbin. I totally agree. Banks have the opportunity not only to help with individual consumers, but with businesses as well. As industries want to be poised and ready for the upswing, we have things we need to get in order. For example, update technology, possibly building our bench, upfitting our space or planning for increase capacity needs. We may not want to go into debt to pay for these things, but have the right instruments available to us if needed. A bank could and should be a valuable partner for a business to plan strategically for the upcoming year. A simple needs assessment and matching those needs to products they have available while managing the the clients debt tolerance would be ideal. If a bank would come forward and lead in this area, it would be welcomed and very valuable.
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Robin,
I definitely agree with you. I posted something similar a few days ago about how most financial institutions are simply trying to divert the flood and hoping that someone else downstream will clean it up. Why not stop the flood at its source as you suggest? Maybe a bank or two will step up.
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Justine, I bounce back and forth about going into debt for a car. Maybe this is what I should say: Owning a car should be the goal. Instead of buying a brand new car every few years buy one and drive it till it dies. Or get one that will get you where you are going — old buicks and chevys are dependable and dirt cheap (ugly I know, but safe and roomy if you have kids) and take the amount you’d use on a payment and save it for a car. I moved up the car owning ladder that way myself. Have I ever told you about my $500 audi? It’s hard but it can be done if you have an income.
Sara, I hear those kind of remarks about Credit Unions all the time. Are banks studying what they do right? Hmmm.
Yes, Kathie, businesses for sure are having conversations about money that are quite different these days.
Bill, nice post: http://ubereye.wordpress.com/
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Jamie P. January 8th, 2009 at 12:58 pm
Great post Robbin. I think there is a big opportunity out there and a void of leadership that some brands will seize.
I was given some recent advice that in uncertain times like this it is the brands (and people) that are able to focus and accelerate through the challenge - that these are the ones that will be able to thrive. The big question facing many of us is whether they are strong enough in the short term to weather the storm so they are in a position to fill that void.
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I agree with the statement on Credit Unions. A few of my friends bank with one and they have had nothing but good things to say.
When it comes to the big banks - they aren’t doing a good job with their social media PR are they? The silent responses to finger pointing about where did all the bailout money go certainly isn’t helping them.
But there is WellsFargovia - the merger between Well Fargo and Wachovia. Their new blog is giving people a peek at the insides of their business and merger. To give credit due - Wells Fargo has led the way of banks when it comes to blogging - perhaps they can be the shinning example.
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Wow, Robbin! That’s such a great post.
I remember you mentioning this before the holidays. Good to see you still thinking about this. I hope that this whole social media explosion thing we are seeing will help contribute to the level of connection that would make such movements and cultural shifts possible. If anything, it illustrates our basic need to connect and communicate and share - which invariably lead to giving. (Advice, help, etc.)
Go where you’re needed and do what you can do: What a great place to start!
