Bank of America was running an ad during NFL programming yesterday touting their online banking service. My ears perked up because I bank at Bank of America and I am always up for a new fee (sarcasm). So there they were, talking about their online bill pay. They showed screen shots of payees and a calendar of when payments would arrive. I kept waiting for the big “aha” moment that never came.
So I watched more football, hoping to see the ad again, telling my wife that it was work related. The ad appeared again. Nope. I didn’t miss anything. This was just an ad that cost tons of money and probably did tons of nothing.
I stopped by my local Bank of America branch this morning and found that they had a new campaign – “Pay three bills online and get $35.”
I get what they are trying to do. If you start using their online bill pay, it becomes less desirable to leave because you have all of that data and history on their site. It’s what bank marketers call “sticky” products. Lump the online banking with stuff like savings and checking accounts, debit cards, etc. and you become as sticky as a movie theatre floor.
So if it’s a pain in the arse to leave your current online banking set up, is $35 going to motivate you to move to Bank of America? I doubt it.
Don’t all banks have online banking? If they don’t would you even consider them? Isn’t it redundant to even mention that you have online banking? I mean, you’re a bank right? And the internet has been around for like 15 years. You mean you guys figured out how I can send $9.99 to Net Flix every month? Please.
I just don’t know how something this stupid happens. I mean, what ideas did Bank of America have that they didn’t run? Here’s a short list of ideas worse than running ads about online banking:
1. We have carbon copy checks
2. We have safety deposit boxes
3. We have drive through tellers
4. You can withdraw cash from ATMs
5. We have lollipops for the kids
Bank of America isn’t different than most of the banks out there. They all play it safe and pretend we’re still in the 1950′s.
What if a bank did something unexpected? What if a bank did something that truly made them different, something that made them better than the others, something that made you excited about where you bank?
Author: Josh Fleming
www.lessingflynn.com
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{ 19 comments… read them below or add one }
My bank gives my co-pilot pooch a dog biscuit when I go through the drive through!!!!
I hear you, the banking world is all about flying under the radar, especially after last year. They all have the same products and fees, just at different variables. It would seem one of the mega-giants could come up with something creative and win over more market share, but then again most (national) banks are doing pretty well right now…so why rock the boat.
I could not agree more. As someone who has worked at a big bank and a community bank, it seems the big banks spend millions of dollars to be just like the other ones. (their websites and products are all pretty much the same.) Even the smaller banks have pretty much the same products, so does it come down to Rates? No, because those are pretty much the same as well. How about
1. Do the tellers know your name?
2. Do the loan officers underwrite and service the loan, or just sell it?
3. Has your bank participated in a government bailout?
4. Is your bank solvent?
5. Are the bank owners in Iowa or California?
I won’t advertise the bank i work at here, but this is a cool website supporting community banks http://www.moveyourmoney.info
Ben Cox~ thanks for your link…http://www.moveyourmoney.info. I love the idea…just hate that the closest bank to me is about an hour away. ha! I live in West Des Moines…what’s that tell ya!
It is actually one of my goals (I refuse to say resolutions) to ditch Wells and move to a local credit union. Being with a big bank just makes me feel dirty
I’ve only ever used the small, privately own bank in my home county. It has 3 branches, all of which are within 10 miles of each other. It really is a small bank. But it’s sturdy, loyal, and reliable. I use the online banking (since it’s hard for me to drive an hour and a half from my college to my bank in my hometown) and I love it.
Their interface is great, very user-friendly.
I’ve seen the online banking options of some of the “big banks.” They range all over the place, from hideous to bulky to confusing…and topping them off with another function that’s better left elsewhere (like centralized bill-paying) would only work to complicate matters.
Coming to college, I was faced with deciding whether to keep my own bank, or choose a state or national branch that would allow me easy access from anywhere.
I chose ATM fees and relying on online banking and checks. I’ll go with a reliable “old friend” approach over a faceless monster that’s had to get bailed out any day.
To Ketelsen. Try the bank finder again, there are plenty of community banks around the Metro area… or you can follow me on twitter and I can direct you to some @bencox34
Jason – in the words of Jack Black in “School of Rock” ‘Stick it to the man’
Ben- I’ll hafta try again! tks
Why would anyone bank at Bank of America when there are so many locally owned institutions? One sincere answer is that all those branches USED TO BE LOCALLY OWNED. For example, twenty years ago, there were Brenton Banks, First Interstate, etc. They have been swallowed up by larger banks, and then larger banks still.
The only players that have remained untouched in this market are Bankers Trust (and has also promised to remain unpurchased), West Bank, and the plethora of credit unions. Earlham Bank is another solid locally-owned bank. Small towns are full of locally-owned banks as well but not immune to being bought. Iowa State Bank is another locally-owned favorite. (With great marketing too thanks to @Flynn Wright)
My point is…you should bank with a local institution. My reasoning?
Lower interest rates on loans
Local servicing of loans (not put in a giant portfolio and sold)
Excellent customer service
Personal help
Lower fees
No one should fall for the slick marketing and branding of huge chain banks. They’d just as soon wipe a booger on you than help you.
I’m sticking with my credit union! I currently use one of those “too big to fail” institutions and hate it. My savings account is with my hometown credit union. They know me (or my parents, aunts and uncles) and defintely offer better service.
I had totally planned on writing a long, drawn out response/comment about why everyone should avoid BIG BANKS at all costs, but then I read Claire’s comment and absolutely lost it! I mean, seriously, anyone who puts “They’d just as soon wipe a booger on you…” in their comment doesn’t deserve a long-winded, somewhat political response from me!
Well done, Claire!
@DevinRange
Thanks for all the comments folks.
Pete – you make a lot of sense. Guess the point is that it would be so easy to rise above the rest with a little creative thinking.
Ben – great link, we’ve been showing that to everyone in the office today.
Kelly – can you imagine the kind of insight Banks could have if they played in the social sandbox? Just on your comments alone…
Ketelsen – open a bank, I live out west too.
Claire – Let me grab you a tissue
Megan – Big banks should look at the credit union model and she what they can borrow for their own customers
Devin – Claire has mad commenting game, as evidenced by her commenter of the year award last week. http://admavericks.com/2009/12/29/commenter-of-the-year-announced/
While I (we) don’t always agree with what she posts, she certainly is colorful in her imagery. : )
Fleming…you’re on! got some nice empty pieces of property with 5″ of dust sitting in the inside…somebody’s gotta be ready to work a deal.
Ben..I tried my zip code again and it still wants me to go to Nevada. Maybe you could share with us the few and the proud…if they’re anything other than what Claire shared.
thanks!
kk
These responses are awesome! here is a website where you can search by where the bank’s charter is. so put in West Des Moines and you will see there are 10 banks chartered in WDM. click on the name of the bank and it will show you how solvent the bank is. http://banktracker.investigativereportingworkshop.org/banks/iowa/
If you click on Marengo you will see my favorite bank.
Claire mentioned West Bank, sorry to inform you they received TARP money.
Ben! like the link! thanks
Ben: I didn’t know that but it’s still a locally owned bank. I’m sure they’ll get it paid back soon.
You forgot free checking… that is a big motivator when I pick a bank. (Cough cough)
There is no such thing as free checking, bait and switch 101!
Great post Mr. Fleming. Once upon a time preemption was a great technique implemented creatively in various campaigns. The “we offer online banking” claim is nothing short of an embarassment to such preemption classics as the Shlitz “live steam” claim or Lucky Strike’s use of “toasted” tobacco.
If you’re going to use this classic technique, use it wisely.
“The America in Bank of America isn’t just part of our name, it’s something we believe in. That’s why you won’t find a single terrorist employed at any one of our 33,000 nationwide branches. In fact we’re the only bank in the United States to be awarded the Gold Statue for Recognition of Outstanding Anti-Terrorist Hiring Practices. Try finding that trophy at your local credit union.”
Shame on B of A for so such laziness at every level of this effort.
Keep up the great work Mavericks!