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Clueless banks

October 21, 2010

While we are being told by the likes of The Futures Company that American corporations are disconnected and distrusted by consumers, outside of oil companies, banks seem to be the category in the most trouble.

The latest foreclosure crisis is a case in point. Something appears really rotten in the system and despite all efforts to provide a smokescreen, this latest episode can do nothing to shift consumer confidence in banking institutions upward.

Jonathan Weil writing for Bloomberg sums it up.

“The banks only have themselves to blame for the fix they’re in. Three years ago, as the subprime mortgage crisis began to spiral, one of the lessons the public should have learned is that the leaders of these companies often have no idea of what’s going on inside them. We may be witnessing the same phenomenon again. There’s no excuse this time for anyone to be surprised.

When and if you happen to spend 30 minutes watching CNBC and you see the ads for the large institutions, the same arrogance abounds. Take a look at this UBS wanting to Apple ad. It’s as if nothing has happened and the world is just the same as it was in 1984.

For anyone responsible for the image of a bank, these are tough times, but on the bright side, there’s a massive opportunity for someone who can rise from the ashes of distrust and present an image and importantly, a product offering that’s truly in-step with the times.

Posted by Ed Cotton

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