This is why the banks are in a mess – and other businesses too

Goldman Sachs has announced today that it is “thinking about” running an Internet bank. Hang on a minute – I thought they were a bank. Indeed, their web site says, for instance, “Goldman Sachs offers comprehensive wealth management services, including private banking products and services, to our high net worth clients around the world.”

So, how do you do that without an online bank? After all, high net worth individuals are usually busy, they frequently use high-tech solutions and they want their suppliers to be up-to-date.

Goldman Sachs is demonstrating clearly with this announcement how out of touch it is with the real world. The first Internet banking transactions took place in October 1994 in New York at the Stanford Federal Credit Union. However, computer based banking started in 1981. So there’s 27 years of history of this technology – why is Goldman Sachs so slow?

No doubt the company could argue they are not a “retail” bank and therefore have no real need for online banking. Maybe. But their tardiness indicates what is wrong with so many companies in the traditional business sectors. Their adoption of new technology is woeful. And that could well lay behind many of the business failures we are currently seeing. Many companies think they are “go ahead” when in fact, mentally, they are still in the 19th Century.

If you run your own business or want to keep your business alive during the coming recession you need to be right up-to-date. That means:

  1. Focusing your entire business operations online – make the Internet central to your company, not a sideshow
  2. Keeping up-to-date with changes to the Internet – make it a priority to attend technology events and follow technology blogs
  3. Actively taking part in social networking sites – who you are connected to online now means a great deal of difference in terms of your likely success
  4. Adopting a rapid method of changing things – no more committees, investigations or reports, action is what you need

No longer can you afford to sit on the sidelines and take things one step at a time. And you certainly can’t go the way of Goldman Sachs and wait 27 years before you “consider” doing something.

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Graham Jones
Graham Jones is an Internet Psychologist who studies the way people use the online world, in particular how people engage with businesses. He uses this knowledge to help companies improve their online connections to their customers and potential customers and offers consultancy, workshops, masterclasses and webinars. He also speaks regularly at conferences and business events. Graham is an award-winning writer and the author of 32 books, several of which are about various aspects of the Internet. For more information connect with me on Google+
Graham Jones

@grahamjones

Graham Jones is an Internet Psychologist, professional speaker and author of 32 books who helps businesses understand the online behaviour of their customers
This is interesting and worth of a quick read. Is Your Content Strategy Heading in the Right Direction? Four-Steps… https://t.co/7c016ORfYq - 13 hours ago
Graham Jones
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