Themes vs. Niche Concepts March 12, 2010
Posted by nichebanking in Niche banking, Nicheruptive.trackback
As we ponder the big roadblocks (most of which are mental blocks on the part of the industry itself, not the customers, by the way) in the adoption of the niche banking paradigm, one of the big points we see being hard for bankers to grasp is the difference between a theme and a true niche concept. This will be the first in a series of a posts to discuss the key differences between themes and niche concepts, and why themes are insufficient to achieve the niche banking movement.
Today, let’s discuss the differences and establish some definition:
Theme
A theme is like a motif. A creative idea that ties multiple parts of something together. Most importantly, it’s decoration. It’s a costume. It’s a flavor. It doesn’t change the core item itself, it just adorns it in a consistent and thematic way that is meant to attract certain people. “Under the hood,” a theme bank is the same as any other bank, it’s just dressed up differently to be more interesting to certain target audience members. The bank’s business model is still the same; it just has a consistent and unique aesthetic, cosmetic layer. Any existing bank could convert itself to a theme bank by simply putting on a new costume.
Niche Concepts
A true niche concept is not decoration, a flavor, a costume or any other type of cosmetic layer. Instead, a niche concept alters the item itself, so that the item is built differently to better serve a specific audience. “Under the hood,” a niche concept bank is not necessarily like other banks at all. It might not make money in the same way as others. It might not be organized the same way, staffed the same way, or provide the same products or services. Its business model is different. As a result, it does look and act cosmetically different on the outside…but it’s also different on the inside.
It’s important for us to gain a common understanding of the differences between themes and niche concepts. Those who don’t understand the difference will perceive the niche banking movement as a new marketing gimmick. Those who get it will see it’s a revolution that will change the industry’s DNA.
Stay tuned for more discussion on themes vs. niche concepts.
[...] banking examples, Nicheruptive. trackback To continue the conversation from our previous post, Themes vs. Niches, and to help understand the difference between themes and niches, let’s take a look at some [...]