| Voices in
Retail Banking
By Pat Allen
Life could be easier in retail banking.
Competition is intense, products are increasingly commoditized
and earnings are squeezed. But that's the conventional
wisdom and it doesn't begin to capture the painstaking
effort taking place in retail banks today. In the pages
that follow as the first of Banking
Strategies' two-part report on Voices in Retail
Banking, you'll "hear" three status reports from Wachovia
Corp. CEO G. Kennedy "Ken" Thompson, National City Corp. CEO David A. Daberko and Catherine S. Kenworthy, the product
innovation leader at Bank of America Corp. It's hard to
imagine more candid discussion on what's been accomplished
— and the work that remains to be done.
Thompson and Daberko, for example,
have reached a pinnacle where, at another time in a different
environment, their predecessors might have hit the Coast
button. To be sure, their careers have had no shortage
of accomplishments, and both, in fact, will be general
session speakers at BAI's Retail Delivery Conference &
Expo in November. But far from being complacent, each
in separate interviews leaves no doubt that his work continues
— and with an unmistakable urgency.
Four years into a self-described epiphany
about the weakness of National City's retail operation,
Daberko is a dyed-in-the-wool corporate banker who became
convinced that the retail operation was the worthiest
beneficiary of National City's rich profits from its mortgage
business. Massive investments were made, dramatic improvements
introduced and results thus far are somewhat encouraging.
But to date, he said in June, "This retail bank is not
as good as it needs to be."
There's been no standing still at Wachovia
either, as the last four years have brought fundamental
changes inside (leading to better-than-peers service quality)
and out (including the original merger of Wachovia and
First Union Corp. and a joint venture with Prudential
Financial Corp.'s retail brokerage operation). The bank's
progress notwithstanding, Thompson pushes on, acknowledging
Wall Street's eyes on the pending $14 billion purchase
of SouthTrust Corp. It's not a comfortable time: "We ought
to be applauded for doing two things at once, not criticized
for it," says Thompson.
Meanwhile, one can imagine the breathlessness
when Bank of America's Catherine Kenworthy talks about
"higher volume and faster velocity of new products." A
quasi-manufacturing approach to the processing of creative
ideas is at the heart of the bank's expectation to accelerate
revenue growth through innovation. It's a disciplined,
group effort. "Revenue growth," says Kenworthy, "can't
be based on one person having a great idea one day." BofA
has already launched several new products as a result
of this innovation process.
From Thompson to Daberko to Kenworthy,
these conversations with senior editor Kenneth Cline document
the kind of "restless discontent" that make for fascinating
reading — and often excellent operating results.
Coming in Banking
Strategies' Retail Banking Special Report: Part
II: Strategies For the Front Lines, including the results
of BAI research focused on improving front-line sales
and service.
Ms.
Allen is managing editor of Banking
Strategies.
Copyright © 2004 by Banking
Strategies, published by BAI.
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