Comments on: The Burst - First ROI & BancVue Interview (Ep. 20) http://blog.banktastic.com/2008/06/12/the-burst-first-roi-bancvue-interview-ep-20/ We're just getting started Tue, 06 Jan 2009 19:35:49 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Owen Jubandang http://blog.banktastic.com/2008/06/12/the-burst-first-roi-bancvue-interview-ep-20/comment-page-1/#comment-706 Owen Jubandang Mon, 13 Oct 2008 20:25:33 +0000 http://blog.banktastic.com/?p=66#comment-706 I disagree. First off, economic theory postulates that consolidation and sizing up creates economies of scale. Take the example of BofA, Ing. etc. These banks already offer the services that any Federal Credit Union or Community Bank offers. Their websites are better managed than any FCU or CB, and their customer support is so much better. Telling credit unions and community banks that having an online peresence will help them be competitive against larger banks, is not only wrong but also unjust. It flies in the face economic theory. Second, you are dealing with commodity products such as checking accounts. In a commodity product such as this, the only competition will be on price, which in the case of a checking account is the annual percentage. Larger banks with their lower cost/customer will be able to offer better rates (the Wal-Mart vs. mom/pop store anology). Finally, passion is a good as long as it is grounded on something reasonable. These guys are passionate about a dying market with little or no returns in the long run. I suppose that makes for a great marketing gimmick, and a great story, but one would need a whole lot of water to swallow hogwash. I disagree. First off, economic theory postulates that consolidation and sizing up creates economies of scale. Take the example of BofA, Ing. etc. These banks already offer the services that any Federal Credit Union or Community Bank offers. Their websites are better managed than any FCU or CB, and their customer support is so much better. Telling credit unions and community banks that having an online peresence will help them be competitive against larger banks, is not only wrong but also unjust. It flies in the face economic theory.
Second, you are dealing with commodity products such as checking accounts. In a commodity product such as this, the only competition will be on price, which in the case of a checking account is the annual percentage. Larger banks with their lower cost/customer will be able to offer better rates (the Wal-Mart vs. mom/pop store anology).

Finally, passion is a good as long as it is grounded on something reasonable. These guys are passionate about a dying market with little or no returns in the long run. I suppose that makes for a great marketing gimmick, and a great story, but one would need a whole lot of water to swallow hogwash.

]]> By: Mike Templeton http://blog.banktastic.com/2008/06/12/the-burst-first-roi-bancvue-interview-ep-20/comment-page-1/#comment-463 Mike Templeton Thu, 12 Jun 2008 19:55:19 +0000 http://blog.banktastic.com/?p=66#comment-463 I don't think I've ever seen two people more excited by the products they are selling in the financial industry ever before. John and Gabe both seem like top notch guys and I love their vision. Also, the bit about building customer "warriors" was a great point. They are on a mission to overthrow the kingdom that is the megabanks...and I believe they're capable of doing it. I don’t think I’ve ever seen two people more excited by the products they are selling in the financial industry ever before. John and Gabe both seem like top notch guys and I love their vision.

Also, the bit about building customer “warriors” was a great point. They are on a mission to overthrow the kingdom that is the megabanks…and I believe they’re capable of doing it.

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