Capital One TV ad
Tom Dougherty, CEO – Stealing Share
14 January 2018
Capital One TV ad highlights banks’ misguided thinking
You needn’t go any further to understand the poor state of banking today than watching the most recent Capital One TV ad. In it, a spokesperson says, in so many words, that the old style of banking is kaput.
He is right, of course. But what’s the solution?
“How many times have you entered a bank branch? More importantly, how often do you want to go into a bank branch? I’m guessing zero. And no amount of coffee will change that.”
The Capital One TV ad suggests banks should reimagine themselves by increasing the value of its least valuable assets. Its locations.
This is akin to the sailors of the Titanic saying, hey, let’s drift closer to the iceberg! A recent study concludes that consumer visits to retail bank branches will drop 36% over the next five years.
How many times have you entered a bank branch? More importantly, how often do you want to go into a bank branch? I’m guessing zero. And no amount of coffee will change that.
The Capital One TV ad does spotlight a serious conundrum for banks. They know the old style of banking is disappearing. It’s gone. Banks are then left with the most expensive billboards in the city.
Capital One TV ad really says locations are finished
So what are banks to do? Well, I can tell you one thing. Reimagining banking by making the location a café isn’t it. In fact, banks should reduce the number of locations altogether.
The same study says mobile transactions will increase by 121% in the next five years. And I don’t doubt that figure. It’s no surprise to anyone to say we have become a mobile society. Consumers are now the ones in control, which means anything that suggests inconvenience becomes a significant barrier.
Sure, make your branches more appealing. But that’s not banking reimagined, as the Capital One TV ad suggests. And it won’t grow preference. Reimagining banking means developing a whole new model. Riding downstream with current trends instead of upstream.
Banks face the difficulty of mobile banking preference because you don’t know if one is better than the other until you become a customer. You can’t try out another bank’s services.
But the Capital One TV ad shouts to the heavens that banks are in desperate need of what would truly create preference. A brand that speaks to consumers in such a way that they say, “They get me.”
Not, “They are worried about how they are going to pay their lease.”
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