Thursday, February 12, 2015

Forget price - what about real value?

We really do get it
"...and with your home loan, you can choose from our menu of convenient, time saving services that let you get on with living the style of life you want - More Play - Less Work".

I wonder why banks do not yet use non-financial services as a means of differentiating their products from competitors? Imagine being offered a home loan that included a monthly lawn mowing service, or fortnightly house cleaning, or ironing, or garden maintenance, or dog walking or......

Banks in Australia make lots of profit. LOTS. And they have business customers that provide all of the above services. With the ever-increasing pressure on maintaining a healthy work-life balance, it would make sense that lenders look to exploit this reality. Sure, there would undoubtedly be those who cry "But we are in the financial services industry and we would be placing our Brand reputation in the hands of service providers over whom we have little control". I hear you. But I also believe that the benefits of product and brand differentiation through adopting a lifestyle-appealing product would far outweigh the "outcry" of the occasional sloppy mow or ironing effort.

Same lending product. Same interest rate. More time to live your life. - I know which lender I'd choose.


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