The economy is going for a nose dive a lot of the banking and financial institutions Husnu Ozyegin and Warren Buffet are unacquainted with the massive opportunity available. Though financial success has to do with being at the proper time and in the proper place you've got to also know that it is the proper time and the proper place.
Banks and other institutions are not aware that they are constantly in place to blast off such as a rocket. To exercise this sort of leadership it will need guts and insight to the general effect the economy is having on everyday people.
In the midst of uncertain times, where the economy is tanking of all fronts, opportunity is ringing loudly and yet it is not being heard. What am I taking about? I am talking about leadership and awareness.
Credit is being tightened up, folks are ugly on their homes, and oil is beginning to restrict mobility on most Americans. Yet the win win attitude hasn't come forth from the financial sectors. They're just worried how they will come using this economic mess. Everyone suffering from this downturn is worried about the same thing.
As an optimist I see probably the most incredible opportunity for these institutions. The opportunity is to greatly help families and small businesses find out what they should do to weather this economic storm. Let's look at some background then I can get you through the opportunity portion of the leadership idea.
Over the past prosperous movement in the markets and housing industries from the mid 1990's as much as around the summertime of 2006, many things attended to past. More individuals experienced homes, started new business, had job stability, and people were replenishing their 401Ks and IRAs. Money was no problem finding, private investors had seen little risk even yet in the sub prime markets.
Life was good. Our banking institutions were our financial partners for these new homes or new business etc. But, when things go south, where are these partners? These were easily available to finance people when things are going well, but what about when things are not going well? The bean counters are now abandoning ab muscles source of these prior prosperity and that's ab muscles people they originally financed.
When this occurs, social responsibility is going the window. Oh, yes they could have some projects to greatly help rebuild some areas or share with a charity. They now see many savings accounts start to dwindle, foreclosures start to boost and new businesses close down. Yet let us have a closer go through the core of the dilemma.
The core of that is people. People who might have hit on hard times, maybe only need more cash to pay for the elevated prices on food, utilities and gas for the family car. The families affected have solutions that may be limited by what they already know. Families may take the route of drawing down their savings accounts, 401ks, IRAs or stop any savings altogether.
You can find groups out there taking care of improving family credit worthiness and saving homes from the foreclosure markets, which is really a positive thing to do. My next question is where will be the banking and financial institutions on all of this? What're they doing to greatly help their customer base weather the financial uncertainties being faced today?
Allow me to illustrate the issue especially in the housing market. A banker calls me and says they have a means to fix my problem. Just how can that be? My house has become worth 56% significantly less than what it was in 2006. My estimation is that the housing market will continue steadily to roll back another 10 to 15% over the next 6 months. It will need approximately 7 to 10 years to recover that loss in value and equity. What'll they do for me personally? Another loan maybe based on which?
You see there is no provision for this sort of problem. This devaluation happened only one time before that I can remember, back the 1980s. I don't believe a provision for such an occurrence has been included with any mortgage contract.
One other situation could be the drawing down on savings and other financial instruments. A year ago it use to cost $ 50.00 to commute to work and now it costs $ 150.00. Food prices have already been affected as well, my average cost on food was $ 30.00 weekly, now the same items cost me $ 48.00 dollars a week.
So if one was saving let us say $ 100.00 monthly and placing it toward a child's future education or toward retirement that discretionary income has been wiped out. Well most financial institutions will leave it at that. The question is the reason why? I'll say this it is due to not enough leadership and awareness; they are leaving the long run on the table at this time of the game.
The simple truth is that there are different ways by which any institution can help individuals save money. All that's necessary could be the will to do it. It might cost the institution a little bit of money but the relationship and loyalty that will come out of it will undoubtedly be incredible.
What effect this would have? First the bank are certain to get more customer loyalty. Second the banks will help the client know where they are and have a vision of where they would like to be. Third it will help the client be more financially stable. Fourth the financial institution will have the ability to provide some alternatives to aid within their client's growth.
It's the personal touch that could show leadership qualities. It raises the awareness of what families are facing now, not tomorrow. You are able to distribute little flyers as well as little forms in order for them to fill out. That is impersonal and usually won't help a person with the hit and miss of mailers.
This will open the entranceway of opportunity for clients to save lots of more and have a longer term view. Assist them in confronting their spending behavior.
You can find little things that you can do to save lots of bundles of money. So many folks have a phone but do they have the proper money saving service? Are they watering their lawn an excessive amount of? Do they leave the lights on atlanta divorce attorneys room? Is the air conditioning set too low? If they shop do they're going 5 or 10 miles to save lots of fifty cents on an item?
If they do go shopping, will be the routes taken saving gas or wasting it? Some people pass right by the store that they may visit the next day. They ought to have there shopping list done the night before and just pick up what they want on your way back home.
Are they using energy saving bulbs? Could they refinance their car at a lower rate? Just acting on a half dozen ideas could save them hundreds or even thousands of dollars per year. Do they have stuff at home that they may donate to a charity and have the tax write off? What about a garage sale on items they don't even use. Maybe they should do some home repairs to be more energy efficient? Maybe produce a more aggressive savings plan?
Leadership and awareness in just this industry would then help the everyday consumer head in the proper direction. Helping people to manage there future optimistically will reward one with loyalty and enhance the awareness of a family group, business or individual on managing their personal finances. The banks or institutions will be more than just a financial partner. The opportunity will there be, I wonder who would take this project to fruition.
Helping people get on the proper path, will help them achieve life. Partners are necessary to create this happen; we cannot succeed on our own. Banking and financial institutions can produce incredible effects by partnering with the client base.
How easy it is always to execute this plan. Most loan officers in banks know their client base. How simple it is always to offer free services without commitment to any strategy or recommendation made. It is a helping hand. What about that for a project name "helping hands" just make an appointment and send someone out to meet up clients at their house or at the bank and make recommendations. The public relations value alone will be incredible.
No comments:
Post a Comment