A Banks nightmarecompetitor is Google

By Paul Brink, March 2011

A Banks nightmare competitor is Google

Sounds weird? Let me explain…

Companies can roughly be divided into two groups1. Companies that move atoms2. Companies that move bits

See: Being Digital, 1995 by Nicholas Negroponte

1. Companies that move atoms

Companies that move atoms are companies that produce or transport physical products

For example: Philips, Heineken, KLM

2. Companies that move bits

Companies that move bits (zeros and ones) are companies that produce or transport bits of information, in other words: produce or use software 1)

For example: Microsoft, Google, Amazon

1) Software is: zeros and ones that change zeros and ones into other zeros and ones

Companies that move atoms and bits

Most companies are moving bits one way or the other, but not all companies move atoms

Nowadays a bank doesn’t move atoms anymore, they only move bits

The same goes for insurance companies

Therefore a bank has becomea sort of software company

Like…

But what makes a bank different from Google?

Not their customers

Most customers of a bank are using Google,most users of Google are customer of a bank

No, their products makes them different

What does Google do?

Google Inc. is a company investing in Internet search, cloud computing, and advertising technologies

Google hosts and develops a number of Internet-based services and products like: Google search, Docs, Gmail, Maps, Chrome, Books, Health, AdSense, etc. etc.

What does a Bank do?

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets

A bank connects customers with capital deficits to customers with capital surpluses

But if Google can make a search engine covering the entire internet, can make an operating system for your desktop, an e-mail system serving millions of users…

Why can’t they make a banking application?

Ultimately a banking application is much easier to make than an operating system or a platform that connects thousands of people

And…

Google is offering most of these services for free!

So…

If I were a bank managerI would be worried

…be very worried!

So dear bank manager have a good night sleep

and think how your Bank is better then .

…or Facebook!

Don’t let Google become your nightmare competitor

Sweet dreams!

“...”

“Maybe it’s...”

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”

Peter Drucker

“Because the purpose of business is to create and keep a customer, the business enterprise has two, and only

two, basic functions: marketing and innovation.”

“Marketing and innovation produce results;all the rest are costs.”

Peter Drucker

The Hedgehog Concept: Three overlapping circles: What makes you money? What could you be best in the world at? and What lights your fire?

James C. Collins

The 4th of the seven characteristics of companies that went from good to great. From thebook “Good to Great: Why Some Companies Make the Leap... and Others Don't”, 2001

Technology Accelerators: Using technology to accelerate growth, within the three circles of the hedgehog concept

James C. Collins

The 7th of the seven characteristics of companies that went from good to great. From thebook “Good to Great: Why Some Companies Make the Leap... and Others Don't”, 2001

Paul Brink

Website http://paulbrinkfotografie.nlLinkedIn http://www.linkedin.com/in/pauljohanbrinkFlickr http://www.flickr.com/photos/paul_brink/

DisclaimerThis is my personal private opinion, not the opinion of the website managers, director or editors or the organization I work for.

My goal is to challenge my personal opinion to the opinion of others. “The many are smarter than the few.” So feel free to respond.