Dear Bank of Prairie Village Community~
Surprisingly I received a great many comments regarding my August letter that School should start before Labor Day.
As I am currently writing I am visualizing the local football teams working out in the 100 degree heat, and little ones walking home from school in humidity making it feel like 110 degrees.
I am having a hard time believing such oppressive heat is good for Back-to-School Learning. Alas, as always with the weather, I have learned to just grin and bear it. On a freezing day this coming January I am sure I will look back fondly on the Summer’s heat.
I must say I do feel a little vindicated about my trepidations that our current society is simply jumping from one Holiday Sale event to another.
I recently read in a major national newspaper article that the big retail chains are having major debates whether it makes sense to start advertising and putting out Halloween displays—prior to Labor Day! I would think it should not be much of a debate. I would think it rather obvious that it’s hard to stimulate shoppers to embrace the “Halloween Spirit” when the radio advertisements are blasting “Labor Day Car and Furniture Specials.”
(Clearly, I am a banker and not a marketing genius. I am sure some “hot-shot newly-minted marketing-MBA upstart” has developed an algorithm demonstrating a certain consumer segment starts developing the urge to run out and buy Halloween costumes, candy supplies, and various theme decorating accoutrements – while enjoying Labor Day Barbeque.
If I was this MBA upstart’s manager – I would subtlety ~ or perhaps not so subtlety ~ suggest he or she double check their consumer marketing algorithm. I’ve learned over the years common sense often proves more valuable than even the most complex excel spreadsheet formulas.
Speaking of newly-minted MBA upstarts, Excel spreadsheets, and common sense, one must underscore this point when it comes to the banking industry and big banks.
I was recently asked to speak on banking to a local business group. Many had questions on how the government seems to be encouraging the nation’s biggest banks to get even larger. This seems rather odd, as almost every other month I read about some big giant bank being criminally fined for wrongly imposing some devious hidden fee on their broad client base.
Another of the business breakfast participants stated, “it seems like the government wants fewer banks in the economy, Mr. Bolen ~ what do you think?”
With everyone looking at me, I could feel my stomach tighten and my breath go shallow. One half of my inner voice whispered in my ear – "Don’t you dare say what you are really thinking, Dan. Don’t ever say anything bad about another banker, even if it is a big national bank.”
Of course, then there is always a second inner voice encouraging you to speak the truth.
Finally, I squared my shoulders, regained my pulse rate, took a deep breath, and said with full conviction, “the statement about the need for fewer banks is only half right. What we really need are fewer big banks and a great number more smaller banks.” At that point I knew I had the full room’s quizzical attention.
I decided to lay out my commonsense case. “These big giant national banks are so big; they no longer know their clients. To them customers are merely deposit numbers to be used to squeeze out profits from one quarter to the next. It is easy for big national banks to develop devious and hidden fees ~ if they are so big, they do not know their client. Specifically, who their clients really are ~ and what their dreams, challenges, and aspirations may be.”
By contrast I said, “if you are a small bank and know your clients ~ including their parents and their kids, doesn’t common sense suggest you are more likely to treat your clients well and fairly?
As a small bank we have to live under all the rules and regulations designed to keep the big giant banks from taking advantage of their nameless clients. It is expensive and often frustrating.”
As I said, I think our economy would be better served with fewer big banks and more small bankers. As the great economist E.F. Shumacher said in his book, “Small is Beautiful.” The more one knows, and cares about one’s clients ~ the more likely they are to treat them with respect and fairness.
I seriously doubt, any hot-shot, newly-minted marketing MBA will ever be able to produce an algorithm spreadsheet disavowing such common sense.
Yours in waiting to focus on Halloween until after Labor Day, knowing and treating your clients well ~ and common sense over algorithm spreadsheets. Thank you so much for letting us be your Bank and Bankers.
~ Dan Bolen
