Comments on: The Attractiveness of Being an “Ultra-Commodity” http://thelongtailofbanking.com/2010/05/27/the-attractiveness-of-being-an-ultra-commodity/ Covering the emergence of the niche banking movement Thu, 05 Jan 2012 22:31:07 +0000 hourly 1 http://wordpress.com/ By: nichebanking http://thelongtailofbanking.com/2010/05/27/the-attractiveness-of-being-an-ultra-commodity/#comment-56 Tue, 01 Jun 2010 21:53:14 +0000 http://thelongtailofbanking.com/?p=83#comment-56 Chris, thanks for commenting. You are exactly right–”how much time” is the real question. The end result of commoditizing (don’t mind my using the ‘z’ instead of the ‘s’ ! ) and componentizing is absolutely inevitable. My answer to that question is “soon, if I have anything to do with it!”

I think the other big question is, “how many banks will die trying to AVOID this evolution toward ultra-commoditization?” My guess is that most will strongly resist this trend, and it may eventually be the end of them.

]]> By: Niche Banking http://thelongtailofbanking.com/2010/05/27/the-attractiveness-of-being-an-ultra-commodity/#comment-55 Tue, 01 Jun 2010 17:17:41 +0000 http://thelongtailofbanking.com/?p=83#comment-55 Sean, thanks so much for your comment, and glad to hear you’re on board with our thinking. Thank you also for the link as well, to your presentation at eComm. Our venture here is exciting to me because it’s an innovation in the business model of banking…as well as innovation in marketing as well. For some reason we don’t see much innovation in the actual business model in banking…yet.

And yes, our site is deliberately vague. We just haven’t gotten enough ducks in a row to be able to present it clearly. But it’s a banking venture, rather than a strategic consulting service–I can tell you that much. :) Please stay tuned, though–it won’t be vague forever, I promise!

]]> By: Chris Skinner http://thelongtailofbanking.com/2010/05/27/the-attractiveness-of-being-an-ultra-commodity/#comment-54 Tue, 01 Jun 2010 17:06:11 +0000 http://thelongtailofbanking.com/?p=83#comment-54 The idea of a bank being split into manufacturer of products, processor of transactions and retailer of services has been around for a while. It’s just not well practised by banks to split this way because they operate as a cohesive whole under a bank license. This will change.

Checkout:

Banking as a Service
http://thefinanser.co.uk/fsclub/2009/02/baas-banking-as-a-service-presentation.html

and

Let the iWars begin
http://thefinanser.co.uk/fsclub/2010/05/let-the-iwars-begin.html

Banks will commoditise, componentise and then reform into new models of operations over time. How much time is the question.

]]> By: Sean Park http://thelongtailofbanking.com/2010/05/27/the-attractiveness-of-being-an-ultra-commodity/#comment-53 Sun, 30 May 2010 04:37:35 +0000 http://thelongtailofbanking.com/?p=83#comment-53 Think this is absolutely spot-on. See http://www.parkparadigm.com/2009/12/28/platforms-markets-and-bytes-video/ > definitely room for super-efficient, scaleable banking platform at the bottom of the financial services stack. But most bank CEOs (like their telco analogs) have an irrational, ego-driven (?) fear of embracing commoditization.

Checked out Niche Banking but unclear as to exactly what you guys are doing. Strategic consulting? Or is it deliberately ambiguous for now… ;)

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