Here are my thoughts on some big issues in my world …
Fifth pillar thinking
Banking is a utility. Access to credit is a human right. It’s about creating public goods not maximizing private profits. So, I support mutuals, Mfis and other institutions who engage with their communities to deliver ‘more than banking’. I believe that mutuals can be a big part of the Fifth Pillar of financial services.
20% in 2020. In egalitarian Australia, mutuals should have at least 20% of the market, as they do in Canada, the safest banking system in the world during the GFC. Mutuals provide competition for the majors, and deliver real social benefits via better products and pricing and investment in communities. A revolution is required, though, to make this happen. Good management is not enough. Real vision and a little bravery is what we need to get there.
Community engagement is the key point of difference for ‘mutuals’. However non mutuals like Bendigo Bank are colonizing this difference. Mutuals need to learn from this experience and respond. Mutuals don’t do things for communities – they are the community! Community is not ‘warm and fuzzy’ stuff. It’s what people – or enough of them – want. It’s what the future will be built on – demonstrated community impact.
Cooperation. It’s not a dirty word, it’s good business. Aggregation or cooperation are essential to survival. Mutuals rely on aggregated IT, ATMs and marketing. It needs to get better across the board, or the show will be over. An infrastructure for success needs to be built for the next generation.
How will it happen? Growth depends on access to capital and funding, and then capacity to execute. Again, aggregated solutions are necessary. Just as you ‘virtually optimise’ today’s servers, the loose federation of mutuals need to maximise efficiencies to provide the best service for end users – the members who make mutuals work. 20% market share in 2020 needs a lot of capital and a lot of funding. Your time starts now!
Honesty. Brand, marketing and IT are the major weaknesses of mutuals. Real change is required to find the solutions to these problems. A common industry brand. Significant uplift in marketing spend and effectiveness. Investment in the best IT. That’s just the dot points.
Pioneers. The people who founded mutuals were social entrepreneurs – an inspiration for the future and not a ‘quaint’ memory. New pioneers need to be found. People with the energy and fun of Apple and Virgin and the vision of Grameen and Oxfam.
Youth. The ‘youth of today’ are not the problem but the answer. Young members will be the salvation of mutuals. So start talking to them. Design the future with them. Go on! Won’t that be a good story to tell the grandchildren?
Work Life Balance
Gandhi when asked what he thought of western civilization famously replied that it would be a good idea. Perhaps many of us feel the same way about Work Life Balance. 5 years ago I left my safe partnership in a law firm to avoid the trap of being controlled by work. I now choose the projects I work on and seek to learn as much as I can from everything I do. Making the change allows me to make time for writing and other loves like travelling, spending time with my son (who lives in the UK), studying, doing microfinance projects and ocean swimming with the mighty Inedibles!
Work life balance is hard achieve, but a great dream to keep in your mind.
Recent articles on Social Business and Microfinance …
Microfinance, Meeting Dr Yunus …
Why not join the Waratah CLT Association bandwagon?
