The Long Tail of Banking

A Terrible Fit For Most People May 15, 2010

One of the fairly universal things about today’s banks is that–while they may not admit it–they generally believe they can be everything to everyone…all varieties of needs, and all varieties of values.

Serving All Varieties of Needs…: You’re unbanked? We’ve got products to help you build a credit history. You own a small business? We can help you grow. You’re affluent? We’ve got private banking services!  Etc.

…And All Varieties of Values: You like to bank remotely without talking to anyone? We’ve got all the latest in remote deposit capture, mobile banking and more.  You like a lot of in-person hand holding? Great, because we’re relationship bankers!  You’d prefer better rates over personal service? Guess what, we can give you both! Yada yada.

When you’re a niche bank, it’s an understatement to say you don’t want to serve everyone.  In fact, you know you’re a flat out TERRIBLE fit for 99% of people…and even if those 99% wanted to bank with you, you wouldn’t let them.  You’d turn them away, because you know you’re not a fit for them, and that ultimately they’ll only be so-so customers at best.

But guess what?  Those 1% of people who you ARE a good fit for?  You’re not just a good fit, you are an AMAZING fit for them.  You are their dream come true, and they’re better customers than you could ever hope for.