The Banking and Strategy Initiative

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It's here – Marketing has made a treasure island for banks

Well, have you noticed how easily information about banking is available these days. Sure some of it is only because of the crisis. After all, those who understand it the first time, get a lasting understanding and a lot of green horns have been fed on this crisis and today can say they know banking. And of course, mostly for those of you tracking banking as a habit, it is us. Our incisive analysis and timely conlcusion has shown with clarity the cut of information and the carat in direction for each new step from China, Latam to sale of units in India, Asia and charges being traded by hithertho ‘traders only’ family.

There is another subtle difference. Today, the business of banking is no longer held to ransom by flippant ads and worse product design than the lusciously expensive architecture of Dubai World. That products are just careful because of the CFPRA regulations and the CARD ACT ( already in force) , not forgetting restrictions globally on misuse of email and telephone lists..but these steps are in fact in their infancy. And as far as we are concerned, we would have guided but a few leaders to the right way to cross the flooded river.

More importantly, the Big 4 and the Citi, BofA and Wells Fargo among banks have realised the folly of not having bothered about the Marketing and PR functions at their hallowed portals. JPM and Goldman Sachs have suffered for their high-handedness because theire was no way they could defend their actions to anyone and now anyone on the street could be paying them…But we being of the same ilk, took a little deeper look at each post we wrote and thus, we think this one also is a mistake easily corrected by the traders by :

A. Throwing money at the problem and hiring a new look Marketing and PR department. Citi has been scouting for its person in charge for the deal since January and has recently closed with one of the two Deputy Mayors of New York leaving Michael Bloomberg as the evening draws to a close on his tenure.

B. Ensuring that everyone is tracking the leverage in the system and in light of restrictions to be placed by a non investment banking / markets friendly administration in both US and the UK, making sure that no BS is aired or heard in lieu of deserved leisure.

C. Adopting conservative thought (guilty!) in prophesying bank growth and impishly exciting assumptions while prophesying country/national growth. Yes, the Good times virus is also back in the market, making it tough for the McDades and the Other iphone billiards Champions accompanying the Senior Managing Directors from keeping their trap shut and creating complications for the banks operations.

Apart from requiring a coherent Communications strategy and sitting together to decide which way the lobbying penny drops, the I banks and Citi also have to take care of prospective customers and time is ripe for the staid and the multi billionaire island owning crowd to assign people and materials to “making things look good” all the time. The Super Tax and the Super Fed Bills will not be the basis in the next crisis either, with everyone bankrupt right now and just exchanging paper at thankfully liquid rates (right now!) . When the next crisis comes, we alone would not be able to help the banks go straight from the outside and they will need insiders who are able to take a birds’ eye view and present a face that can be trusted and at the very least respected before clients are roped in for deals on spreadsheets that continue to make sense to a able few of us.

The social media may also pay a role next time, like it swung away from GS during the week in Greece..but more than that the brand its growth being welcomed in new markets is a sign that when there is another argument, a lot more retail footfalls will be watching the show and making their money’s presence felt ( even if in pennies)

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This entry was posted on April 1, 2010 by in Emerging Markets, Financial Markets, Financial Services, O'nomics, Uncategorized and tagged , .


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