BLOG: The Eagles Nest


All retailing's success factors have changed and are evolving with technology, consumer preferences, costs of doing business and leadership through customer-centric innovation. The traditional large stores with excess footprints in every type of business are finding that they don't generate the bottom-lines like they once did, even in financial services. Presently the industry leaders in assets still can hide some inefficiencies such as multi-tier management and an abundance of under performing stores/branches in terms of new revenue generation. At the same time the number of commodity niche competitors online and in store fronts are continuing to evolve eroding certain product market shares or relationships. The latter is the long term critical catalyst to manage. Consumers are more cost conscious and as a consequence will be attracted by better deals such as free chequing and e-transfers or a 1.89% mortgage with no added fees. You and I both know that larger institutions "smooth-out" revenues over many products or use a so called relationship pricing model which basically blends rates and fees. 

There are a number of commodity players in financial services expanding their product reach in every area of business from investment fees to chequing accounts. These players will expand through commodity collaborations which will have omnichannel coverage but stay away from expensive operations, management structures and non-profitable strategies. So how to you think the Amazon, Wayfair, Google, platform competitors will make out in financial services? Or better still commodity competitors' philosophies similar to Dollarama, Giant Tiger, etc in financial service store fronts. Personally I believe that you can and should have commodity collaborations under white branded umbrella's in your distribution strategy. Smaller margins are possible and profitable.

Today's shoppers permeate all segments and overtime their preferences change so a successful business model will be based on multiple businesses that will engage consumers as they prefer!

Pat Palmer | Monday, March 12, 2018 | Trackbacks (0) | Permalink


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