Sometimes life made simple trumps life made fabulous – when you’d rather come home to a clean sink and kids in bed instead of to a candle light dinner. I suspect the same goes with banking. Personally, I’d prefer a bill with no surprise charges that gives a clear, categorized view of my spending to a new app allowing me to bank via iPad. Stack the frustration of spending an hour getting bounced around customer service against the joys of a new reward program and no wonder “Bank Dumping Day” exists.
What I want in a bank essentially comes down to the good old KISS -“Keep It Simple, Stupid”- and the 1000 or so banking customers we recently surveyed agree. To tease out their real preferences, we had them go through a conjoint exercise in which they are presented sets of banking products with different attributes and asked to choose their favorite one from each set. We then ran market simulation based on that information to see which offerings will sink or swim. Turns out that consumers flock to “straight up”, clean and hassle free banking solutions that make their lives easier. MLC’s Decision Simplicity research from last year would also suggest longer banking relationships and higher recommendation rates as a result.
Yet simple is easier said than done, because the highest form of simplicity is letting others do things their own way, some call it “Natural Pathing”, others call it following “Desire Lines”. It is the idea that instead of designing paths as you see fit and tell people to stay off the grass, you build paths where the grass is worn by footfall. You’ve got to go with the flow because if you don’t, customers will circumnavigate, or worse yet, quit.

If you look at the chart above, most traditional banks are only scratching the surface when it comes to achieving “simplicity”, sometimes going no deeper than changing the tag line. Bank of America launched a 40 million ad effort in 2009 touting “simple, clear banking”, which Adweek considered to be “rather generic — educational, almost” and could just as easily have the names of other big banks like Citigroup, JP Morgan Chase slapped on it. Bottom line is, customers don’t care how much effort you expanded, they care about how much effort you’ve saved them.
Compare that to the likes of Mint or Simple.com. Mint positions itself as “Your financial life, all in one place” which I personally like for the fact that it gives me nice little pie charts of where I’ve spent my money. On my regular bank accounts I’d have to do that by downloading my transactions into Excel and doing the summation myself which is a drag. Simple.com lets you ask questions in normal English like “How much did I spent on taxis in New York last month?” and have real people (often the same one) answer your call at first try instead of tossing you around making selections. That’s almost Zappos-ish. I’d like to see real banks make customer service the bedrock of their business, but they seem to lack the vision, the will, or both.
Does simplicity make you invincible? No, but getting there will put you a long shot ahead of competitors. The only thing that kills simplicity in our simulation is fees – even if it’s just $3 or $5 a month. Customers said no to debit card fees, I think they mean no to basically any kind of fee.