Doing Away with an Urban Myth

Banking is necessary Banks are not

Who truly coined the phrase “Banking is necessary. Banks are not.”

Personally, I give Bill Gates credit for many a thing. Without his technology vision and his business acumen our daily lives would look totally different today. Yet, despite many sources on the Web claiming so, I give him no longer credit for the statement “Banking is necessary. Banks are not.”. After some tedious research on the Internet as well as in literature data bases the most convincing source of this quote became for me the former chairman and CEO of Wells Fargo, Mr. Richard M. Kovacevich. See Nocera, Joseph (1998): Banking is necessary-Banks are not. Fortune. May 11th, Vol. 137, Issue 9, p.84.

However, should you have any hard evidence proving the opposite, please do drop me a comment. Thanks!

Dr. Patrick Schüffel, A.Dip.C., M.I.B., Dipl.-Kfm.
Adjunct Professsor
Haute école de gestion Fribourg
Chemin du Musée 4
CH-1700 Fribourg

Reflection Time: Innovation in Banking

What hampers Innovation in your bank

 

Innovating is intrinsically difficult. Coming up with an idea for a new service or product is just the mere beginning of what oftentimes turns out to be an extremely cumbersome journey. Moreover, the banking industry in particular is not especially innovation friendly. Being aware of obstacles on the road can help to clear those hurdles. So, whenever you enter on an innovation journey, spend a few minutes thinking of potential causes for troubles.

Dr. Patrick Schüffel, A.Dip.C., M.I.B., Dipl.-Kfm.
Adjunct Professsor
Haute école de gestion Fribourg
Chemin du Musée 4
CH-1700 Fribourg