Savings banks: 6 ways to walk away from big bank trouble

Eric Van Hoof, partner at EY, and Michel, founder of UHDR, recently went to Volterra, Italy, to present their view on “Talent Management” in the New Economy. The forum they participated to was organized by the European Savings Bank Group.

They enjoyed the moment to require the participants to provide their inputs and ideas to innovate in the savings bank world using a systemic approach (via the 7D – Create intangible value on 7 levels instead on only one)

The savings bank is an interesting experimentational field as it is often seen as old-fashioned, quite the opposite to be ready to embrace innovation. Nevertheless to survive in this world in mutation they have to adapt; let’s say more intensely: transform themselves. Use their qualities in the public perception such as regional, reponsible and retail oriented and activate their hidden resources to do more and increase their intangible values.

* 1. Organize a health care day

Health  In order to reach the emotional level of the employees and think of them as citizens, insert a health day within the company. Include a personal coach to change their lifestyle. “Better in their body, best in their mind.”

What’s more: Extend the health care day to the companies part of your customer base, combined with a “financial health” scan. And why not, with a 7D-Value scan.

* 2. Educate with what you know best: Risk assessment

Tour_De_PiseYour excellence lies in your risk assessment process. Bring a risk assessment perspective to crowd-funding initiatives in your region. WIth that in mind you provide additional credibility to the potential funds’ sponsors. A collaboration between different funds would increase the ratio success-to-loss. Thus linking local clients who want to invest their money locally.

What’s more: Use the customer-liability-side of your balance to seed the fund.

* 3. Serve your diapora where she is

Being regional allows you to have additional proximity to your client base. Therefore you should accompany them wherever they go. To do that, ope a local office where they live.

What’s more: increase the transparency and the customer protection of your products.

* 4. Surf the several needs’ mix of different generations

Picture 4As explained in the presentation we will face multiple generations (up to 4) on the workfloor at the same time. Unique phenomenon which should not decrease in the future. It will be critical to serve their specific needs. Why not create a fund specific for the Gen Y & Z. Or more specifically adapt those existing to the needs of the baby boomers entering the retirement stage of their life .For ex. a rental suites fund for healthy seniors – which fills in a gap in housing needs.  To not discriminate the youngers, offer insurances for the same fees as the other categories adapted to their lifestyle (international, extreme sports, …)

What’s more: Integrate non-financial elements in yearly bonus

* 5. Focus on what makes the savings banks unique, the three R’s: Retail, Responsible, Regional

These qualities do not reject the technological innovation and introduction of new media in the business model. The latest provides a huge facilitator for social interaction. Savings banks must embrace this trend. The proximity to the client will be increased with the multiplication of touch points (e.g. SMS when the bank account approaches the red zone). Multi-channel but seamless and interchannel approach: one does not exclude the others. The highest value of the relation to a new paradigm banker will be the capacity to have a horizontal view on the private and business-life of the client, instead of a vertical one. Horizontal means: where do you come from, what value did you accumulate (on several levels), and what are you up to. A vertical one is: what do you have, what do you owe today. The latter being somehow restrictive and blocking too often on risky profiles – there where these could bring very high value iof well coached and networked. This is something where a savings bank can add huge value.

* 6. Infrastructure investments

Funnily, we ran across an article on occupy.com from Ellen Brown, on another new way to valorize saving banks. Synchronicity ?

In short, the idea would be to shift deposit money of the savers from the big banks, becoming too risky, to savings banks, postal banks, into PPP (public private partnerships) which invest in infrastructure investments instead of in currency bonds. Its long term, risk free, local invested, serving common good, offering direct business to local contractors, as such serving long term employment. All the virtuous driving forces are met !

Extract from the article:

“…Wall Street Is No Longer a Safe Place to Keep Our Money

A postal bank could have appeal not just to the unbanked but to savers generally who are concerned about the safety of their deposits. Traditionally, people have deposited their money in banks for three reasons: safety from theft, the convenience of check writing and bill paying, and to earn some interest. Today, not only do our bank deposits earn virtually no interest, but they are not safe from theft – and the prospective thief is Wall Street itself.

The Financial Stability Board (FSB) in Switzerland has mandated that “systemically important” banks come up with “living wills” stating what they would do in the event of insolvency. The template set out by the FSB is for these too-big-to-fail banks to confiscate their creditors’ funds and convert them to bank equity or stock. Legally, “creditors” include the depositors. In fact depositors compose thelargest class of creditors of any bank.

…”

Link to the article here.

The crisis and distrust with regards to the banking world provides a unique opportunity to reinvent itself and exploit the intrinsèque forces of the savings banks. By expanding your model with the best practices in the world and opening your eyes to a different approach you will be best equipped to survive in the coming future.

When looking to the future, the interconnectdness will be more present than ever. Thinking systemically will be the key for future growth and success. Some of the ideas presented here above only scratch the surface of the potential of systemic economy. We have a lot more to bring to you.

Paul Mauhin

www.uhdr.net

Presentation showed during the event:

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