IW, re:" I believe the brand recognition is extremely important here..."
Hi IW,
I like your post.
But, having brick and mortar is not necessarily a bad thing, most people go to the brick and mortar banks... my account is at a brick and mortar bank. And, I can pay my bills online, and check my account and transfer account balances.
The other thing is I have been banking with my bank for 15 years... they have a massive customer base and don't believe revenue growth is via the internet... it is through cross-marketing and business and private accounts. The recognize the fashion craze elements present in the internet.
The new EGroup will try to go head-to-head with banking institutions that have been around for over a hundred years...they are experts at cutting costs using electronic systems... the entire banking system is built on electronic systems.
Also, the bank is a community institution... those brick and mortar locations represent a community service... they will not vanish that easily. A lot of people still remember what a "run on the bank" means.
Online does not necessarily mean better and brick-and-mortar does not mean worse. Ever see the Wal-Mart commercials or Wells-Fargo commercials?. They aren't reinforcing convenience, or saving money... they are reinforcing community and trust and care and human interaction... something to notice.
People crave a physical community, and Wal-Mart and Wells-Fargo know that. Let's see what has gone already- the bakery man, the milkman, the newspaper boy, the gas station boy, the newspaper boy, the barber and shave guy, the butcher, the general store, the hardware store, the vegetable stand, the coffee shop and counter, the soda shop, the insurance salesman, the Fuller Brush Man, the Avon Lady...all these places where one actually knew somebody's name are victims of the big business that have drove them to impersonal stores that cut costs.
Maybe I am just letting nostalgia get the best of me... jeez a sentimental investor... dangerous!
Just my opinion.
Jon :) |
