Current Events - 10/30/2000

In a Deloitte Consulting telephone survey of 2,000 banking consumers in 10 countries, the importance of personal, responsive service ranked high enough to merit a warning to bankers: “Ignore service at your peril.”  The “Myth vs. Reality” study released this month is not exactly consistent with a two-year-old survey of 33 senior executives in 17 countries; which revealed that financial providers were more likely to promote 24-hour account access, new products and lower fees. According to the new study, customers still have a preference for brick-and-mortar and currently do not log on to a Web site for their banking needs, nor do they expect to. The message: If you want to migrate customers to the Internet, the service should be better than in the offline world.

The consumer study also suggested that most consumers were likely to look first at their current financial service provider for new products. More than 75% said they were not interested in products from such nontraditional providers as Microsoft Corp., Lufthansa, Walt Disney, Sony and Virgin. So, cross-selling skills could play an even more important role in the evolution of consumer banking.

Topics like this, in addition to measuring bank performance, board reporting process, and bank valuations after the Financial Modernization Act, are on the agenda for CBA’s Annual Bank Directors Briefings in Rohnert Park and Ontario next week. A State legislation update and economic outlook complete the briefings.

Our members have made it very clear how essential CBA’s legislative advocacy is to influence the wide range of issues affecting banks. With this in mind we have committed and will be continuing to strengthen CBA’s voice in Sacramento. To begin with, all Government Relations have been consolidated into our Sacramento office under the leadership of the Director of Government Relations, Senior Vice President Greg Wilhelm. He has already lured Bank of America’s chief State Capitol advocate, Roxanne Gould Arreguin to the position of Vice President, State Government Relations. Before Bank of America she was lobbying for TRW Corporation and the California Chamber of Commerce. The Sacramento office will have more announcements in the near future.
 
 

Timing is everything, and with the elections coming up I can’t emphasize enough the importance of everyone’s engagement in the selection and election of our government officials. Even at this late date, a small contribution can carry enough weight to affect a campaign. In some cases, timing couldn’t be more important. This underscores our ongoing philosophy for influencing positive action on banking legislation. You can and must make a difference by becoming more involved in the political process.  The challenge is how to compete with the numerous other groups and individuals vying for legislators’ attention. As we move forward on this front, you might consider the following as you develop and nurture relationships with your newly-elected or re-elected legislator: They must be able to count on the faith and credibility of  bankers’ information and statements. Issues brought to the attention of a legislator should encompass the effects and benefits to their constituents. The stature, tenure and integrity of the lobbying organization behind you (CBA) is vital to legislators’ willingness to work with you. —Gary Gertz President and CEO

 

FYI
ATM update — Banks in the City of Santa Monica, after a highly-publicized ban on ATM surcharges, have resumed service to non-customers.

CBA’s Annual Legislative Summary will be available before year-end. And the State of the Industry report — back by popular demand — is in the works.

Mark Your Calendar — CBA’s Annual Bank Presidents Seminar is scheduled for January 11-13 at the Four Season Biltmore in Santa Barbara.
 
 

10/30/00