The "Billy The Kid" Checking Account

Church...Credit Unions...Stepping on Toes
I was having lunch with a group of people when the topic of friendship came up. As everyone was talking about what they liked or disliked about their friends one person said something that really took hold with the group.

The person said, “I need friends that when I get lost they tell me and are not afraid to step on my toes. I need to hear what I need to be doing no matter if I am doing it or not. I want that type of moral compass” Everyone at the table nodded in agreement and said that was exactly what they were looking for in their friends.

Keeping one's business moral compass can be difficult as you try to navigate changing regulatory landscapes. Just when you think you have it figured out some new piece of legislation is passed. Added to that is the challenge of all the unspoken rules for financial services that seem to be continuing to shift.

Wanted Dead or Alive - Free Checking

Most recently the latest unspoken rule to change seems to be the new trend of killing free checking. This basic vanilla product is on the most wanted list and clearly becoming a product of the past. Just as Main Street is trying to get their feet underneath them the Big Banks are looking for new ways to cash in.

The good news for credit union members according to Bankrate’s annual Credit Union Checking Study is that free checking accounts are alive at many of the nation's credit unions. The study revealed that of the 50 credit unions surveyed, 38 of them -- or 76 percent -- offer free checking accounts with no strings attached.

So why have The Big Banks suddenly targeted checking accounts? It is all about profit pure and simple. Big Banks are trying to earn more revenues from their existing customer base by requiring Main Street consumers to use more products and services in order to avoid monthly fees. One Big Bank is currently testing a variety of fees based checking programs in target markets. The options being tested fall under four types of checking accounts:

•  An “Essentials" type of account is a basic account with a monthly fee (six dollars) and a debit card. Sadly you do get online banking but you do not get bill pay with it. Want bill pay well that is 3 dollars more per month. 
• An "eBanking" account has no fees if the customer opts for e-statements and makes deposits and withdrawals online or by ATM. Also includes mobile and bill pay for only nine dollars a month.
•   An "Enhanced" account will have a fee (fifteen dollars) if a customer doesn't keep a minimum of $2,000 balance. It includes two checking accounts, savings, debit card, and bill pay.
• A "Premium" account requires a minimum of $20,000 balance and provides a tiered checking account with debit card, online banking, bill pay, free money orders and check printing. If you fall below the balance minimum then you are paying twenty five dollars a month.

No matter the option being tested the fact remains that for large banks free checking is becoming a product of the past. This rush to fee reminds me of someone who has lost their sense of direction as they think about their customer base.

Big Banks -No Loyalty  

If you check out the advertising in the target markets (Arizona is the one I checked) you see a picture of a smiling woman pondering which of her checking account options she will choose.  The tag line for the ad is “Checking that fits: Get a solution that fits your needs.” How can Big Banks roll this out in Arizona and not take into account the impact on the average person trying to make ends meet?

The last numbers I saw for Arizona indicated that the state had unemployment rates around 10 percent. This is an economy that lost about 300,000 jobs during the recession, or around 11 percent of the state's total.

In a recent article talking about the job market of Arizona Ioanna Morfessis, founding chief executive of the Greater Phoenix Economic Council and an economic-development consultant, stated, “The Great Recession has redefined the standard of living for most Americans, and in Arizona it has really compelled people to adapt, change and lower expectations.”

I think it is sad that one of the things the people of Arizona have to lower their expectations on is on being able to avoid extraneous fees from their financial institution. I think there is an opportunity to gain market share from the Big Banks as people grow tired of having new fees for existing services. Remember back in 2009 when there was a flight to safety as people were worried about the Big Banks and credit unions gained new members? Today the banks have given credit unions another shot in the arm as they try to fee customers out of their branches. 

Free Moral Compass Moment

Recall my lunch time observation that people sometimes need a moral compass to let them know when they have lost sight of what is important? Well, in the spirit of reaching across the road to our misguided neighbors at the Big Banks here is your wake up call.

“Ahem, to any Big Banks reading the blog…feeing the middle class who are struggling to make ends meet for the same old services just so you can pay for the litigation cost of doing robo signatures on sub prime mortgages…that’s low….even for you guys. Really think of the mentality behind this strategy. Don’t call us…Don’t visit us… just give us your money and nobody gets hurt…that’s a little “Billy the Kid” don’t you think?"

Everyone Needs Some Work Place Passion

Recently I had the chance to attend a chamber of commerce  meeting in which the key note speaker mentioned that many financial institutions have paid a high tuition for a very painful education during this recession. That for many of us part of that education was in seeing what happens when people are extremely passionate in creating profit with no regard for how they make that profit. Sadly the lessons of Wall Street and the meltdown that followed are starting to cool on the political memory. TARP companies are back in the saddle and are moving forward with a renewed passion for finding ways to make more profit. 

While I do not approve of the means or methods of the Wall Street machine I do have to give them credit for being able to attract people who are willing to do anything to accomplish their goals. There is a zeal and energy you think of when you think of Wall Street titans and their hunter/skinners who are looking for the next big deal. No matter how poorly the industry is portrayed it is rarely portrayed as lazy or apathetic towards hitting business goals. 

What role does passion play in our work lives? All of us have seen them. Those coworkers who seem to light up when it’s time to get to work. I recall early in my career working with a lady who was the kindest, gentlest soul that I had ever seen. Not a harsh word or a sharp tone ever escaped her lips as she interacted with her coworkers. Her handbag had a cross-stitch of her grandchildren on the side.

Then the clock would hit the start time signaling that it was 8:30 am which meant it was now legal to call people at home and remind them of prior obligations that they had overlooked last paycheck (yep- Granny was a bill collector).  That sweet old lady was still sweet but her fingers were a blur on the phone, and as she spoke to each person she would light up as she would use her sweet voice and occasionally crack her knuckles and lean forward using hand gestures at the screen. Like some kind of auctioneer the sound of dollar figures would start going back and forth between her and the person on the other end of the phone. It was verbal swordplay to see who would get what they wanted. At the end of the call she would thank them and remind them in her sweet voice she was counting on them to not disappoint her. She loved the game and the challenge of the job and it showed. Each month this kind old granny took home the top collector incentive and top spot on the collections floor. 

That experience taught me a lot about not judging a book by its cover and what impact having passion for your work plays on your performance. It also taught me that in order to really obtain success you have to want to do more than the minimum. When you are passionate about what you are doing then you will find ways to do it better. On the other hand if it is a drudgery to do what you are doing then most of the time the minimum become the most you will do. Today companies need leaders who are strategic, proactive, principled, savvy, flexible, and authentic. All of that goes without saying. Yet, what often drives the business forward is the level of passion a leader feels and is able to inspire. Can anyone imagine Apple being the success it is today if its CEO was not passionate about its future and its products?

The power of passion cannot be over rated. Many of us have turned on the news each morning and seen the crowds of demonstrators who were passionately demanding change in Egypt. The ability of the people of Egypt to demand and receive political change is a stark reminder of the power passion can ignite. It brings diverse people together and pushes aside the boxes we like to put people into. Passion allows us to demand the ability to look forward. It ignites us to either fix some wrong or to pass along something we believe to be right. Passion helps us push past obstacles not because we have to but because we want to achieve that goal that fuels the passion we are feeling.

Consider your own teams. How would you gage the level of passion that is being displayed to accomplish the goals at hand?  Probably many of us work in jobs that do not appear to impact society in a manner that calls for passionate displays. After all, being a manager is hard enough without also having to be the official cheerleader for the group. Yet, what if…what if you could get people really excited about achieving that goal? What if you didn't have to do all the heavy lifting? What if you had someone on the team just waiting for the chance to do more?

Most of us are probably the type that when the goal is on the line we want to be the person in charge. We want to have control. Our internal passion to succeed blinds us to the potential passion in others. I remember one meeting in which I was feeling somewhat sorry for myself because I was feeling so overworked (que sad music for background). So I went and spoke to another leader (my mentor) about my situation. This leader offered sound advise but no matter what she said I kept hearing that I had to do more. Finally exasperated with me (I have that effect on people at times) she said, “ You are not that smart, not every answer has to come from you. You have extremely capable people around you and if you are telling me that none of them can help you then you are a sorry leader!” My pride in tatters I left that meeting angry with her lack of understanding. She obviously had no clue what it meant to be passionate about something and having to do it yourself. Luckily some hours later her words finally penetrated my fog of self pity and I was able to see what she was trying to tell me.

I took a fresh look at the staff roster and sure enough a name stood out. I scheduled a meeting with the person and explained that I wanted to place them on a special project to help me out. The person was thrilled and tackled it with fresh eyes and energy. Soon they had taken the project farther than my original expectations. To add to my lesson of personal humility the person sent me a thank you note for allowing them the opportunity to do more and made a small donation to a school in South America in my name. Clearly I had found the right person for the job.

Practical Application:

Who have you identified that could do more on your team?

How have you  encouraged a high level of autonomy on your team?

What assignment can you hand off to allow someone else to achieve success?  

Has your own level of passion ignited the potential passion in others?