The case for a central processing bank: why should a brand exist if it has no value?

Which bank has the best ATM’s, which one has the best payment processing systems or the best credit cards?

Truth is, there’s nothing at all to choose between any of them. They’re just flat, flip/flop systems that either work or they don’t. No discernible difference. As a colour, they’re all dull grey.

Now take away these key services from the decision. Which bank do you favour now. For all of their billions of investment, their execs apparently worth millions even when they fail, does one single, substantive, original idea comes from any?

With nothing to choose between them, why choose at at all. Why not have just one bank?

Like a tube of Smarties

For those who’ve not sampled Smarties, they’re multicoloured chocolate candy that all taste the same. But any Brits will know what I mean. And that sums up the UK banks, too. Different colours, same flavour.

In fact, the only differentiation seems to be the bonus fees they pay their execs.

So why bother. Each one gives the same rate of interest, each exist on the same high street. Each apply the same rules. And each fall within hours of each other because they all invest your money the same.

No, it’s a serious question. The ATM’s seem the same, they all manage their credit cards out of the same place. In the UK, that’s Brighton (is a clue there?) and they all shift money with the same payment systems. Why not take these services, which are common to all and combine them all?

If all the banks paid a fixed fee then that could be taken out of the services equation. What would be left would be a level playing field where each could try to come up with an innovative and discernibly different service. Sounds good, doesn’t it?

Dump the baggage

Now extend that model. With no baggage to carry, no legacy costs to pass on, no reason not to be original, why would the service have to come from a conventional bank at all?

The door would be opened to any provider, Tesco, Walmart, Virgin or a new player. We could even see some boutique banks appearing. You know what, that sounds exciting. And that’s not a word we’ve ever associated with banks, now is it?

So, what do you think. Add some colour to banking or stay with shades of grey?