In a recent New York Times article, the headline states “We’re Dull, Small Banks Say, but Have Profits”. The article focuses on the state of Indiana, where home prices never sky rocketed like they did in other states and no bank failures have occurred in over 25 years. Their reason why, they’re boring.

The argument goes that if you weren’t a bank who took risks that you didn’t understand 100%, you are bank that will survive. It’s hard to argue with this judgment, especially when you look at the banks who have followed this conservative approach ever since they opened their doors in the early 20th century.

But is this the answer to how banks can not only survive but flourish in the new age of banking? This is an honest question that I don’t have a complete answer to. As I stand now, my answer is mixed. Do I think banks will survive if they stick to their roots and keep the spirit of George Bailey alive? Sure I do. It’s hard to think how this approach wouldn’t keep a bank running.

However, as the economy grows and retirement strategies change because of certain guarantees no longer being, guarantees, people are going to want to do something with their money other then just plopping it down in a boring, uneventful bank. People will want their money with firms who are excited about the potential for what lies ahead in their retirement years and for the future generations of their family. Remember, the Wall Street debacle and the unsound investment decisions that have caused this mess were made by a few, not the majority. Most advisors, consultants and money professionals in our neighborhoods are good people who have nothing but your best interests in mind. Your success equals their success. That’s a tough pill to swallow when you’ve got folks like Madoff and the other goons being glorified in the media.

Perhaps the answer is a healthy mix of both. Remaining conservative and boring in your approach to leveraging the deposit base while also creating excitement and enthusiasm in your customers to remain, customers.

Next challenge is how do you create this excitement, especially when a majority of consumers don’t find the financial world exciting. To be continued…