الأحد، 4 مارس 2012

Using metaphors to describe a point of view

Can we use the word "building" in the financial sector? For example, can we say "building value"?

Some people argue that the word "building" is restricted to the construction sector... Others think that we can use to talk about building value and wealth and success...

So why is it then that the financial industry and specifically the investment sector is afraid to open up to other industry and learn from their lingo and their best practices?

The following reasons are applicable:
  1. Regualtions imposed by the central bank and the monetary agencies
  2. The training adopted by the experts is usually traditional and conservative
  3. investment bankers, no matter how wild they appear to be, they focus on numbers and facts rather than pictures and patterns
In the old days, everyone believed Swans where only white until one person discovered a black swan in Australia which led to changing the belief.... The financial & investment industry must undergo the same transformation... and when it happens... many new opportunities will open up for the investment companies and the investors.

Who said the financial sector should be boring?

People buy what they understand...

and looking at products and marketing produced by the financial sector, i realized that most of it is written by savvy technical advisors, asset class directors or financial advisors who are very knowledgeable about the product but don't know how to package it in a simple and understandible form. 

This reminds me of the Ericsson phone, which was a master piece of technology with advanced features but it was difficult to operate and the manual was written by technical people.  As a result, Ericsson market share in the cell phone market has vanished.

What the financial industry needs today is to hire communication managers and copy writers who are not from the industry, rather they should have consumer product experience like cookies, mobile phones, cars, etc....  It is only when customers understand the financial products that they will be receptive to invest.

Think about it....