The Unsinkable brian cork™

Brian Patrick Cork is living the Authentic Life

bank on Brian

August25

Nicholas Johnson is often found in-and-amongst the companies I’m working with to change the world. I’m not clear what it is he is doing most days. But, some times he’ll haull-off and come up with a pearl worth sharing. For example, in a recent meeting with an uncertain conclusion, he announced the existence of an on-line service called www. billfloat.com. Apparently if you need to pay a utility bill, for example (and entrepreneurs, just like most people, do that) you can convince this shadowy organization to pay your bill up to thirty days in advance for a transaction fee of a mere five dollars. All you need is a viable bank account and the best hopes of the funds being in it by a later, albeit pre-determined, date.

This is different.

Voila!

I feel billfloat is an example of: “being part of the solution, and not the problem”. Five dollars is a reasonable fee for a greater peace of mind. Obviously living paycheck-to-paycheck is living on the veritable edge. But, that is the reality for a growing segment of our national population. Here, someone clearly came up with a solution that is not, in my hardly humble opinion, userous like many of those strip-mall situated paycheck loan (shark) services.

Or, the current banking system, for that matter.

I’m often asked something along the lines of, “If you weren’t running your current business (this is assuming they understand what it is I do), what would you work on, or be doing?”

There’s not a single answer to this question; it can change day-to-day. As I’ve stated on this blog, and through a great deal of public speaking, I could never have planned or anticipated my own career-path. But, in light of our global economic situation, and Johnson’s research, I think if you asked me today, I’d say I would like to start a bank.

There are very few people who really love their bank. I use a private bank and this means I don’t have to suffer the same inconveniences realized by most folk. For example, many are dealing with overage fees that stack up, misleading fine print, and a general malaise born of an apathetic sense of fatalism. However, there’s a unique opportunity in that mainstream contempt for financial institutions. And, concurrent with this is an incredible amount of government backing that essentially makes it a no-risk environment. People are simply hungry for anything different, something contrarian.

A David to the Goliath banking industry. If you will, something heterodoxal. This is where I often realize my best potential and opportunity.

The name of my bank would be something supremely boring, like SmartBank or bank on brian (In my businesses, I typically use small caps for my name because it’s not about me, it’s about what I do). The idea behind it is that bad behaviour in the banking – which is in truth, aligned with Wall Street – world has been largely inevitable because their compensation structures incented people to do overly risky things. the Bank of brian would maintain a reserve level 2-3x higher than Federal requirements, and any other bank. I’ll aspire to World Bank status as well and align myself with European protocols (have you bothered to wonder why the US doesn’t have any World Banks?). Bank of brian would have no bonuses unless goals such as preserving mortgages were met or exceeded and loans made to emerging culture companies based on best practices, carefully monitored milestones and accountability proliferated. I suspect critics would say this would make it impossible to attract top-shelf talent. But, every time the bank gets attacked we’d turn it into an advertising opportunity to emphasize why we’re different.

To wit:

“We can’t attract top-shelf talent? Go on…We take your money and put it in a vault. We don’t need the million-dollar bonus geniuses on Wall Street to do that. SmartBank. Bank, smart.”, would say I.

Bank on brian.

In fact, the first few years of SmartBank would be largely focused on acquisition through every trick in the book. At the very beginning pull a Gmail/WordPress.com strategy ,and make it invitation-only. I’m confident this will create a buzz and also allow you to give amazing white-glove service to the initial customers that want to catch that glassy-fronted wave, who will in turn tell their friends and create a tsunami. That’s called “viral” marketing and that always works when people like what they see and experience. Ironically that would represent a novel experience with banking today where the objective appears to be lining the pockets of bankers while stripping down customers. You can also target certain profitable segments and ultra-safe depositors at first, like Gmail users in San Francisco (using Firefox with an ad-blocker) who make six figures a year. There would be only one style of checks and debit cards and they’d have a distinctive design so if you saw one you’d say, “What’s that?” a-la the American Express Black or Plum card (I have both and everyone’s follow them through every transaction) products which would then start the whole conversation again about how SmartBank is different.

For the first two years you could also do things like not allow accounts larger than the FDIC-insured limit. No one has ever heard of a bank turning away money (unless you, ironically, have poor credit). But, you’d say that although everything SmartBank does is risk-free, it’s still a startup, and if people have more than the insured limit (today it’s 250k for single and 500k for couples) in an account, they should put the extra somewhere else. Again, statistically (and, those types of numbers in the right hands [like my own] never lie) this will impact a very low percentage of customers… And, everyone; everyone, I say, will think it’s naught less than remarkable. This tactical growth can be phased out after a few years; in fact, it would be yet another PR opportunity:

“We’ve been in business now long enough that we feel comfortable with larger accounts.” Boom, free coverage.

I’m not defined as a “tech guy”, but I am more often identified with successful technology, and the associated leadership. So, of course a lot of focus would be on the Bank of brian website. Imagine, if you will, something along the lines of an old-time vintage design aesthetic combined with a Google-like (web 2.0?) simplicity and attention to speed. All logins would be two-factor, with the default being SMS’d  to you with a one-time code to log in when you gave your email address (Just so we’re clear, I’ve given this a lot of thought, for good reason, done my home work, and already using consultants). A significant part of the website would be the blog. It would have a strong Ben Franklin-like common sense voice, with a Thomas Jefferson oriented pragmatic tone with a few cool savings or home management tips each week. And, in-line with my own cultural architectural views, it would cover at least one financial industry story a day that was relevant to historical examples alined with current events for perspective.

For example:

“Bank of America spent forty million dollars on airplanes last year. We spent forty thousand to develop an iPhone application so you can check your balance from anywhere.”  (the average useful iPhone app costs $2.99.). NOTE: Not Android, at first. I say this because quality control is crucial here – and Apple defines that, while Android is working on it.

“Here’s how to block advertising when you browse the web with Firefox; it makes the web faster and less annoying.”

“So-and-so Bank’s website requires you to use Internet Explorer. We insist that you don’t because there are way cooler and faster browsers like Firefox, Opera and Safari. Here are links to those open source browsers you can switch to today.”

“Goldman Sachs just paid out sixteen billion dollars in bonuses to their employees. If we had an extra sixteen billion dollars lying around, we’d put it in the bank for a rainy day. By the way… If Goldman Sachs had never paid out bonuses they never would have needed government intervention.”

Sixty eight Million Reasons Your Bank Sucks. That’s the amount Bank of America collected last quarter in needless ATM fees.” …well, needless to customers, any way.

That’s all made up, for now. The headlines would almost write themselves, and every time a financial institution is in the news it’d be an opportunity to contrast why SmartBank is different, and what the underlying philosophy is behind why it’s different.

I’m a Social Historian. I study and consider why things happen. And, then I do something about it.

As trumpeted above, all of the marketing would be on the web and viral the verbal, or word-of-mouth part would follow (like eBay and Amazon) – because it’d be an online-only bank like ING Direct. No storefronts (brick-and-mortar) where people have to wait in line, or risk a bad interaction with a disinterested teller, or get robbed and need insurance.

To be clear…Basically, a lot of the historical risk of running a bank could be eliminated. When you sign up it would have a: “tell your friends about SmartBank” address book (like LinkedIN) feature that would connect you to them if they signed up for an account, give you both money (I should make the point that Bank of America actually does have something like this, so I have to keep thinking about it because of the karma thing), and also make it easy to send them money, PayPal-style, if they have an account.

I’ll pause here and offer that you might see a trend in my thinking… I’m picking, showcasing and reflecting products and services that appear to be working, and adopting them as my own for your benefit. This can be referred to as “best practices”. And, we need o be all-in on that.

I suspect SmartBank would make money and reward shareholders and customers alike, which just might separate it from the likes of Bank of America, for example. So… How would the Bank of brian make money and also provide terrific customer service, you ask?

I think it wouldn’t touch anything risky on the financial side. However, it would be a data company. As it turns out, data is a hot industry as evidenced by hiring and investment trends (and, I’m a subject matter expert in both areas). The first three years the focus would be entirely on customer acquisition, marketing, PR, and establishing a world-class tech team building a rock-solid infrastructure. SmartBank would likely make less money than non-customer-centric banks currently do, but it would be more than enough to build an amazing product in a sustainable way, like Craigslist did with newspaper classifieds. After a certain milestone, say one-hundred billion in deposits, I would buy or clone Mint. SmartBank would have more (and accurate) data about its customers than almost any other company in the world other than credit card companies, so the online interface would have Mint-like lead generation offers that are based on accurate information. For example, if you spend one hundred and forty dollars a month on electricity, but if you switch to this new solar provider you’d save two hundred dollars a year. Think of it like Gmail (By the way… I’ll admit to referencing Gmail, consistently in this post, to honor Nicholas Johnson and his possibly being a catalyst for much of this) contextual advertising but based on where you spend your money rather than the words in an email. There also might be aggregate data opportunities for economic research or targeting, but I’m not sure if I like, or have a firm understanding of, the privacy implications there.

SmartBank probably couldn’t, and I wouldn’t want to raise Venture Capital, or anything like it, because having any sort of exit expectations, and the predatory influence that would reflect Wall Street, would completely kill the “safety story”. Like most of my businesses today, I would want to bootstrap, and after a few years would be hugely profitable. I understand the irony in this vision coming from a felon. But, there is yet another example of my being Jeffersonian, a heterodox, and the contrarian, eh.

By the way… The existence of bank of brian would also put significant pressure on existing, more traditional, banks and the Federal Reserve,  because depositors would be leaving in droves, putting pressure on their reserve requirements. Existing banks couldn’t compete in a traditional way because they have such a sordid history of customer apathy and bad PR. SmartBank wouldn’t be trying to capture their profits, so-to-speak. However, we would reflexively be unhinging them while driving much more revenue, but in smaller amounts, but a larger end-result.I think this would end up looking something like a credit union, but for the masses.

Thanks Nicholas. And, the rest you readers can thank us both, at some point.

Peace be to my Brothers and Sisters.

Brian Patrick Cork

evil wireless empires (and their minions): a prudent and optimistic comparative Analysis

December28

So…

My research and inspiration for this particular post begins, significantly, with a background story and Amazon (the company, not an, otherwise, defined mythological group) contacting us about approving my Blog for it’s revolutionary Kindle. However, that’s another story in-of-itself. It only, today, sets the stage for the next several paragraphs (and, a bold excuse for yet another dissertation over truth and light)…

Thusly, it was inevitable, that, given my voracious appetite for reading certain types of material (namely Biographies [The Road to Monticello: The Life and Mind of Thomas Jefferson by Kevin J. Hayes and The End of Empire: Attila the Hun and the Fall of Rome by Christopher Kelly are two long-standing favorites] and tombs focused on Comparative Research /1) that Joanne would gift me with a Amazon Kindle.

Once this potentially ingenious device was in my hands, however, there could be no doubt there would follow hours of interrelated research around how it works, why it works and the people (Rowdy, for example, holds technology in even-tempered disdain) that might find them most useful.

I won’t go into any real detail, nor attempt a technology review of this “eBook”. There are other people better suited for such efforts. You can be almost anywhere, think of a book, and get it in one minute. Similarly, your content automatically comes to you. Newspaper subscriptions are delivered wirelessly each morning. Most magazines arrive before they hit newsstands. Haven’t read the book for tomorrow night’s book club? Get it in a minute. Finished your book in the airport? Download the sequel while you board the plane. Whether you’re in the mood for something serious or hilarious, lighthearted or studious, Kindle delivers your spontaneous reading choices on demand.

However, and almost immediately, my research took an unexpected turn – if not twist… My mind wandered to the wireless element of the eBooks.  For example: who provides the wireless service? How does it work? And, who pays for it?

Because the Kindle is a wireless device, there is no PC (or, Mac) and no syncing needed. Using the same 3G network as advanced cell phones, Amazon delivers your content using their own wireless delivery system called Whispernet (apparently an “optimized” version) service and started with Sprint national high-speed (EVDO) data network and then recently changed to AT&T. However, unlike WiFi, you’ll never need to locate a hotspot. And, there are no confusing service plans, yearly contracts, or monthly wireless bills. Says Amazon: “We take care of the hassles so you can just read.”

The process begins when you order your Kindle on-line from Amazon. The price is diabolically reasonable and clever at $259.00. You then have access to a growing number of books (NOTE: this does not currently include Harry Potter), and periodicals such as The Wall Street Journal. And, you don’t pay for the wireless service; Amazon apparently does. I will, eventually, sort out what Amazon’s true cost for the KIndles is (just as I’ve done with Apple products). But, meanwhile, Amazon clearly makes money when Kindle users download and purchase reading material (you should know that I’ve only just downloaded A Short History of Nearly Everything by Bill Bryson for only $9.95).

And, this is precisely where my radar popped-up, and I decided to look a gift horse in the mouth. I tracked down two wireless technology analysts (one a school mate). This was no mean feat given the Holidays. My question was simple: “what might the financial arrangement be between Amazon and a service provider – Sprint now AT&T?”

I learned that Amazon is still working with Sprint on the bigger Kindle DX, which only works here in the United States, because that’s how limited Sprint actually is. However, Amazon made the change, and went with AT&T, for the Kindle 2, so you could use a Kindle almost anywhere in the world. As I dug deeper I uncovered some additional interesting facts. These include, but are not limited to Amazon and Sprint found themselves in a tussell (there are many spelling variations for this word). Sprint was reluctant to help off-set the hardware costs of the Kindle, and wanted more of the revenue. So, Amazon hedged their bet with AT&T – and , also get broader coverage (even though that service often sucks – you can read more about that here: candid colored Apple) for Kindle users.

In any event, apparently Amazon pays AT&T and Sprint about $5.00 for every Kindle buyer. This is likely easy money for both service providers.

Side note (relative to cellular handsets):

Craig Moffett, the telecom analyst for Sanford C. Bernstein, says that AT&T and Verizon are in something of a a bind because they want to keep individual subscribers, yet they don’t want to undercut the pricing to business accounts (read more about this later and below, in the event you become disoriented).

“The worst of all possible outcomes would be for the big guys to cut their prices to match Boost,” he said, thinking about the situation from the perspective of investors. “But it’s not a picnic if they leave prices alone and lose subscribers to Boost either.”

Mr. Moffett says the shift in the market to flat-rate, all-inclusive price plans will ultimately increase competition because such plans make it easier for consumers to shop around.

“For years, the wireless industry had a halo of price protection because users had no idea what price they really were paying,” he said, noting that it was hard for people to figure out which calls were included in various buckets of free airtime, etc. “Once you cross the Rubicon of flat-rate pricing, there is no going back.”

Important note: The Sprint Right Plan Promise allows you the flexibility to change your rate plan at any time without fees or renewing your service agreement.

And, as I circle-back, we begin our decent towards the very nexus of my point…

Comcast charges us about $100.00 a month for internet service. We get a special deal. But, this whole Wifi element needs some deeper evaluation.

With Sprint’s Simply Everything plan you pay $99.00 (more after taxes and related crap) each month for talk, data and messaging).

With AT&T’s Nation Unlimited scam plan you pay $99.00, but also have to pay for separate data and messaging plans if you use a Blackberry or iPhone (for example).

So… Why does Amazon only pay AT&T and Sprint $5.00 per Kindle user, while individual users pay roughly twenty times as much for WiFi connectivity? Obviously, this brings Comcast into the fray as well. Do corporations have access to more palatable price plans? If so, what are they?

I really like, and am thoroughly enjoying my Kindle. More so because it’s use has opened a door filled with many questions with answers that could topple veritable empires. And so, these questions are going to burn brightly in my mind and heart for some time. We need to sort ths out because I think it, ultimately, means we are having to pay way too much for cellular wireless service – especially in light of how awful that service is becoming (against the elegant simplicity demonstrated by the Kindle). It also raises questions, and suggests possible road-maps around fairness, and uniting over common objectives, eh.

Understated ubiquitous note: That research (and it’s dire ramifications for the wireless industry) is in motion, and you know it is! All evil must fear the careful scrutiny of a Prudent and Optimistic Gentleman.

Peace be to my Brothers and Sisters.

Brian Patrick Cork

______________________

Unexpected bonus reading:

1/ Following reflection on similarities and differences across religious boundaries has got two cues: “recognition” and “interreligious theology”.

In the English idiom, recognition can either mean rediscovery of things familiar or acknowledgment of something that may be distinctively unfamiliar but is still worthy of appreciation. In the encounter with other faiths, I may recognize essential features of faith that are equally dear to me. But just as often, I face the challenge of coming to terms with conceptions and practices that are foreign and do not give any immediate sense to me. Can I still acknowledge and appreciate such conceptions and practices, as expressions of a God-given diversity? Sometimes I can, in other cases maybe not.

In what follows, I will reflect upon the double meaning of recognition (as rediscovery and appreciation) in interreligious theology. I use the term “interreligious theology” as a reference to dialogical reflection on ultimate questions, carried out in the space between different religious universes. With “the space between”, I allude to Martin Buber’s conception of a sacred realm which opens when people of different faiths speak profoundly to one another, from heart to heart. In the suggestive words of Buber himself:

In the most powerful moments of dialogic, where in truth “deep calls unto deep”, it becomes unmistakably clear that it is not the wand of the individual or of the social, but of a third which draws the circle round the happening. On the far side of the subjective, on this side of the objective, on the narrow ridge, where I and Thou meet, there is the realm of “between”.

What’s All This About?

"What am I looking at?", you might wonder.

Lots of stuff.

Meanwhile, here, I discuss events, people and things in our world - and, my (hardly simplistic, albeit inarticulate) views around them.

You'll also learn things about, well, things, like people you need to know about, and information about companies you can't find anywhere else.

So, while I harangue the public in my not so gentle way, you will discover that I am fascinated by all things arcane, curious about those whom appear religious, love music, dabble in politics, loathe the media, value education, still think I am an athlete, and might offer a recipe.

All the while, striving mightily, and daily, to remain a prudent and optimistic gentleman - and, authentic.

brian cork by John Campbell





photos by John Campbell

 

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