{"id":1885,"date":"2021-01-27T23:52:00","date_gmt":"2021-01-27T13:52:00","guid":{"rendered":"https:\/\/theonsitemanager.com.au\/news\/?p=1885"},"modified":"2021-01-27T08:56:08","modified_gmt":"2021-01-26T22:56:08","slug":"the-options-list-and-bespoke-solutions-part-2","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/the-options-list-and-bespoke-solutions-part-2\/","title":{"rendered":"The Options List and Bespoke Solutions Part 2"},"content":{"rendered":"\n

Reader warning. In order for this to make sense best to read the previous bulletin if you haven\u2019t already done so.  Then again, if you are used to my stream of consciousness rants press on regardless!<\/p>\n\n\n\n

We left things last month with observations around bank activity during Covid, a consumer culture of low responsibility and some sense that banks need to provide alternate options for clients who are prepared to pay for it.<\/p>\n\n\n\n

Let\u2019s digress for a moment.  As many of you will know I am a student of the motor industry. That is, I love cars and have a history of making \u201cinvestment\u201d decisions in this regard. I\u2019ve noticed that car dealers do something interesting in the value-add bespoke department.  They are not the only ones, but they are very good at it. The fancier the brand, the better.   Want a car?  No problem.  Here it is and here\u2019s the price.  Want leather? Extra. 5 years servicing? Extra. Extended warranty? Extra. Those beautiful 22inch wheels that the display model just happens to have? Extra.  You see where this is going.<\/p>\n\n\n\n

Car brands do something else interesting. They have entry level no frills vehicles and more expensive, better equipped aspirational models. Even the so called luxury brands have adopted this approach. More cunning still is the marketing that portrays the owner of said brand as special, sophisticated, discerning, elite\u2026..you know\u2026a wanker!  But seriously, that marketing works, and many car owners are happy to pay for the experience.<\/p>\n\n\n\n

Makes me wonder why banks in this country haven\u2019t pinched the idea.  Yes, some have private bank services, but these are aimed at high net worth clients.  Why not open the experience to anyone prepared to pay for it?  And by experience, I\u2019m not talking about corporate boxes, long lunches or special events.  Let\u2019s just start with good old fashioned personalised service.  You see, for far too long the banks have been engaged in a race to the bottom. That is, a race to offer the lowest interest rates while maintaining profits for shareholders. It should come as no surprise that in a country obsessed with the value of our house and the interest rate we pay the banks are simply giving us what they think we want.<\/p>\n\n\n\n

Unfortunately, if you squeeze lending margins and still want to make a few bob something\u2019s gotta give. In this case, as in most corporate scenarios, it\u2019s service and a cookie cutter approach designed to save money. For home loan applicants the outcome is most clearly manifested in slow credit approval times and a maddening level of paperwork.  For business borrowers it\u2019s a whole lot more complicated. Slow credit turn around times are exacerbated by often strange and bizarre questions reflecting a combination of inexperience and convoluted credit policy. <\/p>\n\n\n\n

Now, divert already stretched resources to existing clients impacted by Covid and service for new applicants goes from bad to worse.<\/p>\n\n\n\n

The answer I propose won\u2019t gain traction overnight and will take some years to resource, but I think it\u2019s worth a closer look. It will require a rethink of our political and social obsession with interest rates and a cost of service mentality.  Here\u2019s a few examples of the options list for business loans:<\/p>\n\n\n\n

Standard Equipment<\/strong><\/p>\n\n\n\n