A couple of weeks ago about a dozen people got together at Forresters Hotel in Sydney to discuss “what the bank of the future should look like.” The folks at the Bank 2.0 Meetup down under, which included folks from payments startup PayPigg, came up with some ideas for the bank of the future. They even conducted a short survey while they were (presumably) enjoying cocktails.

One question asked, “What kind of services / products would the ‘bank of the future’ offer?” The attendees answered:

• Mobile banking apps including “pay by phone number”;
• Graphical transaction patterns & filters i.e. pivot charts in excel; and
• Tailored deals according to my lifestyle.

What strikes me about the responses is their relative simplicity. The call is not for some highfalutin service, but simply aid in understanding financial challenges, as well as offering easier access. In other words, consumers want a layer of PFM in their online banks — and terribly few banks are offering this valuable service, despite the obvious benefits.

When you consider what’s happening at Bank of America, and the threat of perhaps 30,000 layoffs there, I find it remarkable that the bank does not look to improve its brand and efficiency through innovation, or at least innovation is not on the tip of the tongue there. Instead, layoffs are the course of action. There is something wrong when banks chose layoffs over obvious paths to better customer service and more efficiency when faced with financial challenges.

Some banks have chosen the drug of fees for new revenue, but that approach has its risks. A new study released today by Russell Herder shows just how negatively are fees viewed by consumers.

The results suggest that customers strongly distrust the legitimacy of banking fees, with more than 70 percent of them believing charges to be unfair. Furthermore, an astounding 90 percent of customers felt their bank could have done a better job communicating what fees it charges and how they are incurred.

The study also found that a number of respondents used some type of online forum to publicly complain about a fee they perceive to be unjust, potentially impacting an organization’s reputation. As a result, researchers observed the need for banks and other financial institutions to improve their communication strategy as well as pay attention to customer sentiments not only in person, but also online, monitoring brand mentions and responding to dissatisfaction.

The answer is better service and a closer understanding of what customers need. However, my fear is that banks are getting blinded by the allure of payments and all its massive potential (141.1 million users!) and losing sight of the great potential still not realized by online banking. Bank Simple, Movenbank and other institutions see the value of the integrated online/mobile approach, but I can’t say the same for many other banks. This must change. There must be a new approach. Simply put, the hurdles to changing banks continue to erode, and there is little logic in banks waiting until all those hurdles to be removed before embracing a more enlightened approach to customer relations.