Wednesday, 3 June 2009

The Bank That's Fair

Speaking of Black Swans and risk in retail financial services, I just happened across What Were the Credit Card Companies Thinking? on the Harvard Business Review blog. HBR emphasises the point that you can choose to keep ripping people off, but it's inevitable that your business practices will be rendered unsustainable by regulation or customer revolt.

Some might say the predictability of that means it's no longer a "black swan", but the card issuers seemed oblivious or in denial. Like the turkey that's expecting another meal after being fed for 1000 days, only to get eaten. Or like an MP preparing to file another expense claim...

My bet is that this process of exposure and elimination will happen faster and faster as the social media continue to grow and the ripples of influence become more pronounced.

Which reminds me, the House of Lords is due to hear the latest appeal in the bank charges litigation later this month... Will the banks battle on to their death, or see the value in conceding customers' entitlement to refunds?

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