On further discussion, it talks about how these community based relationships can be implemented in other sections. Community Supported Agriculture (CSA) is the example they used. CSA model is where a farmer adopts a community that conforms with his practices or values. Then he would determine how much food can be grown and how many families it can feed. The farmer then compute a budget for the farm with the community which will then be divided to come out at a price per share which will then be sold to the community.
I felt that what it discusses about is true to some extent. Banks have grown from small localized institutions to giants banks over the decades. It has lost personal connections to its customers but it has also given its customers a much larger reach. It is unthinkable for someone in another country to be able to safely travel to another country without cash in previous times. Community is important but the era of globalization has required banks and communities to adapt to include the whole world at the expense of personal relationships.
I agree and its a very interesting dynamic. But I don't necesarrily care about having a personal relationship with my banker.
ReplyDeleteI agree that banking has lost its personal touch, but I think that it still exists at the investment banking level for corporate clients.
ReplyDeleteBanks such as PNC (Pittsburgh National Corporation) and Boston Private have grown from regional banks to national banks. With that, it only seems logical that a personal connection with the local communities has diminished.
ReplyDeleteSometimes localization can be the competitive advantage for companies and sometimes lose their advantage when they expand. But, banks provide a service that can be reproduced almost anywhere and that is why you see banking losing its personal touch. Although the best bankers are people who build a significant relationship with clients, incentivizing them to come back next time they need a loan.
ReplyDeleteI think more people, beyond those involved in a bank or hedge fund, feel personal connections to money. The inherent value of money has increased as everything now has a price placed on it, including personal relationships.
ReplyDeleteI believe that the personal touch is becoming more and more distant. However if banks have corporate clients that is an all entirely different story.
ReplyDeleteI think it's really true that the personal touch between local banks and its customers has distanced. With large bank corporations, so many things can be done automatically or electronically and without in person contact.
ReplyDeleteI agree with this. In the past, one could travel anywhere without money. We can survive without money. However, today no money means we cannot live in this world. We measure everything in money. We assume that no money is a disaster. We even have a term for it - poverty.
ReplyDeleteI also agree with the idea that banks and customers have become increasingly apart. I think our debt system plays a large role in that, but I also don't know what else we would be able to do to move forward.
ReplyDeleteIt is a shame to see the loss of the personal connection between the banker and the depositor. I think that bankers sometimes forget about their fiduciary duties and only think of the numbers-not the people whose money they're investing.
ReplyDeleteWith the increase in globalization today, it is essential for the banks to start incorporating new customers that they did think they would have had before. This is a phenomenon that will only grow in the future.
ReplyDeleteI agree with Allen that globalization has created a more diversified customer pool that needs to be addressed.
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ReplyDeleteFrom personal experience, I agree that relationships between bankers and customers are becoming more distant. I think it's inevitable when people are just focused on numbers
ReplyDeleteThis is crazy. Banks need to bring in more clients in a new globalized way. We will see this more and more in the future.
ReplyDeleteI think that a more intimate relationship between banks and their customers would not only provide a more fulfilling experience for both parties, but I think seeing more customers and engaging with them would curtail a lot of the speculative risk that is taken over the past few decades.
ReplyDeleteWith technology allowing to do a lot of things on our smartphones, the relationship bank/customer is more distant, and for how practical it is it's not always a positive thing
ReplyDeleteI think that banks have become more efficient with their services, but at the expense of personal connections. One way to increase the value of relationships is to hire more employees for customer service. Sadly, companies or banks will not do this because of cost savings.
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