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Are Banks the New Department Stores of Finance?

Like many industries today, banks/financial services are being rocked by technology advances where robots and sophisticated software can perform many tasks formerly performed by qualified humans. 

Using an analogy between department stores and banks, both of which are/were convenient places to perform one-stop shopping, we see examples of the disruptions technology has played and not to the betterment of their employees.  

https://www.forbes.com/sites/tomgroenfeldt/2017/03/14/banks-the-department-stores-of-finance/#4428c2e06958

Department stores are announcing the closure of stores nationwide, while banks have lost many qualified employees due to the ATM, bank apps, other services performed at ATM machines or online.  The net result is that not only are employees being replaced by technology but, more importantly, customers find it easier to switch institutions to any of new entrants in the market.  Such changes, more importantly, keep customers out of the brick and mortar making them less “sticky” and targets for other providers.

Unfortunately, many retailers and banks are caught trying to maintain acceptable revenues/ROI’s while still being trapped with higher overheads. Making the necessary changes will take time and will be costly.  And part of the cost will be human capital. It is unavoidable.

All that to say, how will this impact you?  I’ve experienced it and wasn’t prepared.  There’s more to this situation that space allows here.

Contact me and I’ll share my insights.

Journey Well.

Sue

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