No, I’m not referring to the fact that customer service is going down the toilet. But have you noticed that every company is starting to offer every other service imaginable?
At first, the banks started offering credit cards. Then, they got into self service brokerage services too. The brokerage firms like Etrade now have savings and checking accounts, while Charles Schwab has this cash back credit card. I knew Discover started an online savings account division, but I just saw an ad that American Express now offer personal savings accounts. Never mind that we don’t need so many offerings, but eventually, every financial institution will be exactly the same. What happened to model of knowing one thing well, and doing it better than everyone else?
The Overloaded Customer Reps
Have you been to a bank lately and the banker doesn’t even know half of the details of their own products? When I opened my business account, I had to change it twice in order to get the right one that doesn’t charge me fees, and the only reason why I was able to find a match was because I went onto their website and studied the details.
Other times, the banker might tell you to call another department because they have no authorities to do anything for you. Hmm. I thought it was the same company…
I know I know. More choices mean better prices, but once every company offer become the same and effectively becomes a commodity business, the margins get lower and the smaller players will just be bought out. It happens in every industry and it will happen to banking. Did Walmart really ignite competition or did it just drive all the small stores out of business?
Oh one thing from Walmart might make our day. If bankers start making low wages like the workers at the superstore, it might make some of us happier, but I doubt that will happen. No one at Citigroup is asking for a union yet.
Sometimes, it’s convenient to grab a soda on your way to checkout. But when it comes down to something more complicated (and more important) like my money, I rather deal with people who know exactly what they are doing.
What do you think of all these financial companies offering the same services? Do you get confused? Is this something you want to see?
Promote or Save This Article
If you like this article, please consider bookmarking or helping us promote it!
Print Post | Email Post | Del.icio.us | Stumble it! | Reddit |
Related Posts
- Best of MoneyNing Personal Finance – Oct 2009
- How to Break Bad Habits
- Our Children: the Future Warriors in the Battle Between Frugality and Debt
- What Everyone Ought to Know When Applying for Free Stuff
- Three Easy Steps to Determine Your Financial Priorities
Subscribe! (and Get a Mini-Course with Free Registration)
Follow me on twitter! In addition, subscribe to grab free amazing content or take advantage of the newsletter to have content delivered to you. For starters, a 7-part mini course to help you spend less and be happy will be delivered to you when you subscribe!(Don't worry about spam, because we hate it as much as you do!)
Twitter
Facebook
Subscribe
{ 13 comments… read them below or add one }
You make a great point. I always struggle with how is it the best for the consumer if a company doesn’t specialize at one thing. No one can truly be everything to everybody. Then you get the trickle down affect. Now that banks are doing financial planning and wealth management the law firms and CPA firms start to as well. As bigger companies do it the smaller companies almost need to just to compete. Where do you draw the line?
For me personally, I needed to draw the line because I knew I wasn’t doing the best thing for people trying to be everything so I specialize and work with a team of people that are great in different areas. I like to think it not only will work business wise but also do the best thing for the people I’m working with. I hope I’m not being naive?
Offering value in an area of expertise is not naive. The problem is people. Many people these days just want everything in the same place and don’t realize the hit they are taking in quality. Cheaper isn’t always better.
You may not make as much $ focusing on one area, but I think you’ll sleep better. Quality clients can more than make-up for the loss of a few “cheap deal” seekers.
Actually, I think it’s short sighted for most people to think that focusing on one area will make less money. It’s a lazy way to expand to different areas, but it’s more profitable when you make sure that you are the best at what you do.
Take Microsoft, they are blowing money on everything you can think of, but it is STILL Windows and Office that makes them 99% of all of their money. Google is one of the biggest company is the world, and though they are expanding, they are fine with just one revenue source which is based on search. When you are the “go-to” company that offers ONE type of service, you can strike it big. They key, of course, is to make sure you know what you are doing and provide the best product and service.
It’s not just the financial institutions but EVERY company in EVERY sector. They are all the same because it’s almost wired into us to expand. Some people do it right, while others don’t. When it becomes a problem is usually the speed of expansion rather than what they expand into. If done right, it’s fine. Of course, seldom do companies do it right!
Most people are impatient, so it’s easy to not plan everything right. I think that’s why most mergers fail, because people spend way too little time preserving what’s been working and just blindly try to combine everything.
For me, along with being frugal with my money, I am even more frugal with my time…. Meaning…I found a place I like and I stick with it. Once the decision was made, I no longer worry about whether it is constantly ‘the best’ place to be, but rather I know that for the long haul it is where I am content to be and know that over the long haul it will work best for me. For me, that is my local regional bank for a check cashing and atm bank… and with the local branch of Edward Jones for all the rest. It’s the people in those places that make me comfortable with the services offered there – and I KNOW they know what they are talking about. I am comfortable enough that when my employer was changing 401K plans, I took the paperwork to my Edward Jones man (who has no financial gain from that at all – only that I am his client in other matters), and he steered me thru it – at no cost to me. Now THAT’s service !!!
Find the place that makes you happy, and then settle in for the long haul. My advice only. It makes me sleep better at night! Stressfree
For the long haul!
You are right, stuff they do now is unprofessional and geared to ignorant consumers mostly.
Joe is totally correct. I was just reading an article on Slate (http://www.slate.com/id/2227216/) about how niche businesses like expensive fancy cupcakes will soon bust as well because the market is over saturated. It happens in every industry. A company sees an idea, realizes they can make money by offering that, and then before you know it everyone is offering the exact same thing which sometimes leads to competition and better prices but almost always leads to a lessened quality of service and value.
“Have you been to a bank lately and the banker doesn’t even know half of the details of their own products?”
Exactly, the worst is when you are talking to a banker live and in person at your local branch and they say, “Oh, you know what I don’t know the answer to that question. Let me just call the bank’s 800# and see what we can find out…” Great…
Ha! I heard that one before. It used to be “let me ask the manager…” Now, it’s “let me call the right department..” Eventually, it will be “let me search the answer for you on our competitor’s website.
The only thing that makes me feel slightly better when that happens though is if the banker has to wait forever on hold or they key in wrong numbers and end up being routed to the wrong department lol
Well, David. This is the fact of life, as many self-claimed “Professional” people are totally the “Unprofessional” themselves! Shame on them…
that business model you say of knowing one thing and doing it very well went to the dogs. its not only the financial industry its everywhere else more so in the technology areas- just look at google(planning on making cars, making cell phones) microsoft etc. its like all the available niches that can turn a dollar are not left unexploited. while this is profitable it provides inefficiencies that other people capitalize on(i know of sites that have done this and are making a lot). BTW its very aggravating when the bankers dont even seem to know that they are explaining to the laymen and the mis information leads to a lot of time wastage