What Business is Your Bank In ?

I recall being in a class with other business leaders and the instructor stated, “Character is what you do when no one else is looking.” In the aftermath of the Wall Street meltdown and corporate bailouts I wonder if that definition is still appropriate. What exactly is the character of a company? It has to be something beyond the corporate spin and public relations messages that are broadcasted to the masses.


I mean prior to “The Spill” in the Gulf of Mexico one would have thought that some oil companies were anything but oil companies. One oil company had launched a 200 million dollar public relations campaign designed to position its brand as “Beyond Petroleum” with a new sun burst logo. It focused consumer attention on the output of its small solar operation while it appears to have cut corners in other more less obvious places.


The same thing happens in banking. Already Wall Street firms are back at making record numbers while Main Street America and small business owners find themselves frozen out of services and loan opportunities. This week a large BigBank announced that it was closing its subprime sales channel and eliminating thousands of jobs. The question is why did they have that sales channel to begin with? We can all understand why they should close it; nobody should build a sales channel that focuses on making risky loans for high interest return.


Today much of the media is focused on consumer advocacy and many BigBanks are scrambling to reposition themselves. There is a saying that I had heard that Joe Frazier had once stated, “You can map out a fight plan or a life plan. When the action starts your down to your reflexes. That’s where your road work shows. If you cheated on that in the dark of the morning, you’re getting found out now under the bright lights.”


Financial institutions are like people they do have a character or culture. They either are truly consumer focused or not. If they fake it when no one is looking they are discovered under the bright lights. Great financial institutions go beyond profit margins and balance sheets. They create and sustain positive impact in the lives of the people they serve. They are more than slick ad campaigns.


Practical Application:


What business is your financial institution in?
Are they in the business of improving members financial lives? 
If not isn’t it time your members belonged to an institution that was in the business of helping them become more financially secure?