I’m tired.
We just moved, and I grossly underestimated the work involved.
I had prepared for the pain of packing, loading, unloading, and unpacking everything we own, but I hadn’t accounted for the real work of establishing new relationships for everything we need: utilities, Internet, garbage pickup, grocery store, dry cleaner, dentist, dermatologist, pharmacist, eye doctor, doctor doctor (sic), barber, hair stylist, manicurist, pedicurist—don’t judge, hicks require a lot of pruning to be presentable.
But what about a new financial institution? Do we really need one?
(Notice I use the generic “financial institution” above so that I don’t offend my bank and credit union friends. Also notice that by pointing this out I offend both my bank and credit union friends. Check your charter politics for a minute, you whiners, and hear me out.)
My community financial institution (CFI) back home has no branches here, but it does have a mobile app. So do I really need a new local financial institution with branches full of people I don’t know?
And which is more vital: local brick and mortar or remote hometown people who I trust and with whom I share decades of history?
The thought of opening a new account and redirecting all of my bill payments, subscriptions, and mobile wallets made me cringe, so I decided to follow “the law of least effort” and stay put, that is, until I needed to wire the proceeds from the sale of our old house to the holder of the mortgage on our new house.
I called my friends at my hometown CFI and asked about the best way to transfer the “guaranteed funds” required by my mortgage holder. I couldn’t believe what I was told:
“Well, we could provide you a cashier’s check or send a wire, but you would have to come in for that.”
“Are you saying I would have to drive three hours there and three hours back just to wire the money?”, I asked.
“Yes.”
“Bless your heart,” I said, “what else you got?”
“Probably the best thing would be to open up an account at a bank where you are, then do an external transfer from your account here to your account there.”
“Wait, are you saying I should get a new bank here?”, I asked.
“Yes, that would probably work best.”
My CFI of 40 years was explicitly recommending I find another bank!
This is what my friend and fintech wunderkind, Ben Metz, calls the “trans-local” problem, i.e., how CFIs remain relevant for customers who either never come into a branch or who can’t because they no longer live where the branches are.
POST SCRIPT #1: Fortunately, my mortgage holder later explained that it would accept a standard personal check, and that bit about “guaranteed funds” just meant I needed to have the money in the account I’m writing the check on. In other words, ‘don’t send us a bad check’—this loose use of language ticked me off but saved my relationship with my hometown CFI.
POST SCRIPT #2: Someone else at my CFI—I have a lot of friends there—later clarified that I could originate a wire remotely as long as I satisfied some extra authentication and verification steps over the phone.
My experience has crystallized a few things that are especially important given we are at the beginning of a new era in which CFIs can solve the trans-local problem by making digital banking personal and by servicing remote relationships meaningfully.
Click here to continue reading.
AFT DEGTALK - Lee Wetherington "Better Than Before"
Thu, Jun 27, 2019 2:00 PM - 3:30 PM EDT
Please join my meeting from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/580178725
You can also dial in using your phone.
United States: +1 (872) 240-3311
Access Code: 580-178-725
New to GoToMeeting? Get the app now and be ready when your first meeting starts:
https://global.gotomeeting.com/install/580178725