Old Skool Banking - Potential Business Opportunity?

ESKIMO

That's a real shame. Any thoughts on a non-profit bank (if any exist)?

What i don't get is that banks are predominantly a service based industry, yes they have crappy products to little or no avail but they miss the point when they attract customer 'investment' purely by speculative marketing (which is what is all is really).

jimjames

All my personal banking is done online.

I'm sure 95%+ of people would not be prepared to pay for the kind of service that would be that shown in Mary Poppins. It may have been possible then but now it would be a vastly premium service.

Having said that for the club that I am treasurer for our account is with Natwest in a small town. Whenever I go in to pay or withdrawn money it is invariably the same cashiers so they know me now which I guess is part of the personal service mentioned.

rb10

ESKIMO wrote: »

That's a real shame. Any thoughts on a non-profit bank (if any exist)?

You mean like a mutual type of organisation, one that doesn't have shareholders to pay dividends to? One where income (supposedly) goes back into providing good value products to its members?

I'm sure we have something like that already...

Loughton_Monkey

It is a matter of irony that if banks still had the "old school" then I think most of the idiotic mortgage lending wouldn't have happened. But it would have been drastically expensive, with high charges for current accouts.

Another irony was that 'centralisation' was not only a cost measure, it was seen as a way of "controlling" any cavalier decisions made by "Mr Mainwaring" and his colleagues. But instead, they passed all the decisions to some fly-by-night, smooth tongued, heavily bonused "Flash Harry" at Head Office - with obvious consequences.

Reaper

ESKIMO wrote: »

My interest was recently aroused by watching Mary Poppins - (of all children's films) and i was reminded about the old school way of banking.

Mmmm... wasn't there a run on the bank in Mary Poppins?

opinions4u

Loughton_Monkey wrote: »

It is a matter of irony that if banks still had the "old school" then I think most of the idiotic mortgage lending wouldn't have happened.

But then bad residential mortgage lending didn't cause the downfall of HBOS, Lloyds TSB or RBS.

Let's not kid ourselves that banks used to be places of great service and moral standards.

Elitest approach where the "ordinary" man had no chance of ever obtaining credit.

Charge for everything approach where the "ordinary" man had to pay a fee to deposit, withdraw, obtain a cheque book etc.

A feeling of fear for those who needed to approach the bank for credit.

Not much has change really lol.

ESKIMO

Knowing you is one thing. Caring is another.

ESKIMO

rb10 wrote: »

You mean like a mutual type of organisation, one that doesn't have shareholders to pay dividends to? One where income (supposedly) goes back into providing good value products to its members?

I'm sure we have something like that already...

The 'Co-Op'?...

ESKIMO

opinions4u wrote: »

But then bad residential mortgage lending didn't cause the downfall of HBOS, Lloyds TSB or RBS..

What did then? I thought it was the "fudging" of banking lending ie "pass the parcel - and add a couple of extra digits on the end"?

opinions4u wrote: »

Let's not kid ourselves that banks used to be places of great service and moral standards..

How very true. A need and neccessity - makes the world go round. Not "speculative" assumptions. 'I want - doesn't get.'

opinions4u wrote: »

Not much has changed really lol.

Actually, I think alot has changed really. The point though, is that people (consumers/customers) are being looked at as a currency and therefore a commodity. Where capital is traded over stockmarkets on assumption and speculation (gambling - ok.. you might say on "informed decisions and judgements") but now look where that has got us. The banks are their own worst enemy and society cannot physically keep up with their reckless lending. We are always having to play catch-up.

Instead of the banks reflecting "real time" life, they are dictating lifes course - which is ethically and morally wrong. But then again... since when have they been deciding factors for the majority. "Look after number one" and all that...

opinions4u

ESKIMO wrote: »

What did then? I thought it was the "fudging" of banking lending ie "pass the parcel - and add a couple of extra digits on the end"?

Poor lending to property developers in the case of HBOS. Nothing to do with lending to individuals. LTSB bought a turkey that dragged it down, as did RBS.

The banks are their own worst enemy and society cannot physically keep up with their reckless lending. We are always having to play catch-up.

It's a two sided trade. Reckless borrowing is also involved.

The 'Co-Op'?...

Building societies. Credit unions.

The problem is, all these organisations need to turn a profit to reinvest in their own existance. Otherwise they become stale, unappealing and uncompetitive.

The economies of scale of a large bank v a small building society provide a massive competitive advantage. Especially with regulators forcing more and more meaningless red tape on everybody even though they missed the "big" mistakes as they happened.