The application for it? Five ways to Bank could learn from the Apple iPad-Wall Street Journal

The line for the iPad 2 White Plains, New York, in the store, Apple handles around the third level of the shopping centre. Line blocked Anthropologie stores and restaurants, Michael. Security guards had to keep clear of the escalator exit.

Meanwhile, the nation's banks are still secretly increasing the attention of the fees charged to customers who use their ATMs: a whopping $ 5 in some cases.

Is the blatant contrast between the two business models.

Compare the experience of retail banking and consumer technology is not exactly apples to apples. Still, it's closer than you might think. As gadget Bank retail sector often do not have a clear advantage against opponents. Gear are short, so a large part of the difference of marketing and consumer perception.

The first tablet computer for mass consumption was introduced 11 years ago. This weekend, Apple Inc. sold its new iPads in Westchester County and New York City area in less than 24 hours.

That is the reason why Apple success offers a valuable lesson to the Bank.

Steve Jobs doesn't listen to interest groups. For him it's all about innovation. This means that filling the need for the customer even knows that it has. It also means that to repackage everyday products into an elegant and intuitive, even in the event that occurs at the expense of functionality.

In other words, Mr. Jobs is doing something cool from the brush – and is able to charge more because of the lumpy.

Which leads us to the big question: could the Bank boring enough for the rest of us the old banking cool?

Maybe it's not real prospects for the excited crowds outside your local branch. But a little innovation and marketing go far. Is Jet Blue flourished by defining them by plane. The people behind Starbucks transformed coffee business in the amount of $ 10 billion a year.

Banks have to Amaze us how companies do, but need to create Buzz. How would our iBank?

Streamline and simplify. One thing that Apple, Starbucks and the well is to build the kernel is Jet Blue product and expand from there.

For banks, it may mean, offers customers a single account. Today, customers of the banks are awash with separate services and recumbent figures.

Delete account numbers for the user-defined names. Allow customers to add services through this single identity. Banks should also offer a single source for assistance in the AppleCare model: one toll-free number and Web address.

Create a holistic approach to financing. One leader in this area is the site Mint.com Intuit. Users can view multiple accounts, regardless of the institution, together with the value of their houses, cars and other assets, while creating budgets and see trends.

The Bank could create Web sites that offer even more. Imagine landing page with these three numbers: net worth, debts and income. And maybe the fourth heading, which clearly says that you are today with your investment, spending, savings accounts, and so on.

Imagine clicking on the link and get your estimated tax obligation, of your estimated pension income and college savings. A simple look at the top and then very in detail for more demanding use.

Create the prestige and the community. Steve Chazin, marketing executive who blogs about Apple's strategy, says that the banks are missing: "in order to help customers to evangelize for the Bank, they send customers referral links in their online payment account. Customers can send their friends these links through Facebook and help them sign with banking services. Referrer gets paid for their work. "It is similar to what Apple is doing with his passionate users."

And instead of spending all their Time wooing investors, bank directors should create runs of products which imitate Apple events.

Notice how Mr. Jobs often begins his presentation with the sales and financial numbers. Imagine a CEO Vikram Pandit touted new deposits when notifying Citigroup Inc., the new mobile retail software, blinking release date, and then, that the implementation would be limited to the first.

Banks are still behind the curve. Many still don't have an iPhone or Android apps. Only a handful have iPad apps. Bank of America still has built exclusively for the tablets.

Banking To entertainment. Laugh if you want to, but Apple's iPad 2 rollout to employees free cups of Starbucks. Worked lines with customers. Even with hundreds of people in the series he felt like he was understaffed in the shop. Now go to your bank Hall and try the coffee.

Reduce unnecessary. When customers and, finally, their hands on their iPads, opened a plain white box and a few pieces of Note paper size. There was no guidance. No additions. Press one button and the iPad was and ready for use.

Consider now the amount of e-mail from your bank: legal statement, stock photos, hot-air balloons, even smiling people.

Think about all the clicks to open a brokerage account. Why do we have to enter any of our information two or three times?

Mr. Chazin it suggests: "just as Apple was super easy to get your music in your pocket with the iPod and iTunes, banks can take the pain away from the process of the application and approve customers (they know their customers Bill payment history and other information required for credit) allows the cutover to know in advancewhat you can afford. "

All this is just the beginning. Of course some banks employ elements of these proposals. But ask yourself: do you feel sympathy to your bank? Even a fraction of the loyalty you have for your favorite gadget, a cup of coffee or an auto maker?

Of course not, but it has nothing to do with you.

"The Bank's traditional approach to building a relationship, but their institutionalized cultures in the way," says Alan towers, Bank Advisor. "Employee turnover in branches is working against them. Their business models Lurch customers between the personal contact and ice technologies without creating a reputation, which brings the loyalty. "

Banks are the false impression that their activity is still going after meeting with customers. It is not. Most of us, you can communicate electronically. It's a gadget business.

In addition, banks continue to be as cross-selling business model, even if the few financial institutions see step needle growth from customer acquisition to open a brokerage account. However, Bank of America talked about last week's sales as the main engine of growth in revenue in the future.

If Apple depended on cross-selling, would have ended up. It's a minor concern, after wowing the customer with the product, whether included in the music player, a laptop or a tablet.

I was ever able to do anything your bank offers you? Of course not. It's about feeling, your bank has just quit. For $ 5 a pop, maybe it has.

Write David Weidner on david.weidner@dowjones.com

Posted in apple inc

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