Reams have already been written on how “retail” banks aren’t particularly people friendly.  Today, the American Banker ran a couple stories on how smaller banks have better reputations than larger banks.  I think the REAL story is how all banks rank below the best consumer brand in any industry.  The Banker cites the Reputation Institute – who’s own reputation is unknown, by the way – as giving New York Community Bank the best score in the industry: 69.08.  Johnson & Johnson, by comparison, scores 85.  The implication is that banks “are not connecting with consumers.”

No surprise.  But who is?  Strangely, while most people (and certainly bankers) condemn the check cashers and payday lenders to “fringe” or “alternative” financial services status, it is here you will find real people interacting with financial services – in the millions.  The FDIC estimates around 60 million people are un- or underbanked.  Do they offer the full suite of financial products we can get in a bank? No.  But they do offer the products many people – especially low income people – need to survive.  Could these services be cheaper and help people get ahead in the world better?  Absolutely.   I think technology is the key to helping these consumer finance institutions better serve the working class.  I also think that “retail” bankers could learn a lot by visiting their local check cashers.  In many cases, they are eating the bankers’ lunch.