Personal banking is an amazing example of an industry that is embracing the net for all it is worth. An in bank visit costs the bank about 100GBP, a telephone contact costs 10GBP and an online contact costs 0.01GBP.
The second interesting effect is switching costs. When you make the decision to join up with a bank the probability is that they will retain you as a customer for the rest of your life.
The one really obvious thing I haven’t seen is a bank really forming a kick arse facebook.com campaign. In the years when someone is first at university switching costs are much lower for their bank account. These students can switch, these students are using facebook tonnes and they are the most valuable demographic. Someone, somewhere get these banks to try it out.
Leave a Reply