Hoosier Banker 39 Airbnb’s reach growing 353 times what it was five years ago disruptive? Oh, and Airbnb also eliminates the middle man. Any discussion on disruption would not be complete without a take on Uber. To say Uber is doing well is an understatement. In 2013 its bookings were just under $700 million, while its gross bookings in 2016 came to $20 billion. That’s a staggering growth in just three years. Disruptive? You bet your bookings it is. But there is another side to Uber’s success. Uber is still an “NFL” (Not For Long) private company. Its valuation rests in the $63 billion range. So what does Wall Street have to say? Let’s take a look at Medallion Financial Corp. (MFIN), which provides financing to taxi companies. In 2013 its stock hit a high of $17.74. However, in 2012 Uber launched UberX, giving an ordinary person with an ordinary car the ability to jump into the private car service business. Wall Street responded, and MFIN’s stock price plummeted since its mid-2013 high. Today its stock hovers around $4, representing a 75+ percent decline in three years. Disruptive? Umm, yes. So if 2016 was the year of disruption, is the trend continuing? It sure is. ;LEX 'ER 'SQQYRMX] &EROW (S %FSYX -X# Disruption to community banks is not a new topic. First came the ATM. Then online and mobile banking. Now bank unbundling and peer-to-peer payments are disrupting the traditional bank experience. But that’s not all bankers need to worry about. According to Tiffani Bova, former Gartner vice president, now serving SalesForce. com as a “global, customer growth, sales, and innovation evangelist” (a newly created positon – another disruption): Customer experience is the next disruptor. In an interview, Boya answered the question: “What do you think are the top trends shaping the industry?” Her answer: “Looking at it from sales and growth specifically, the biggest trend right now is how important customer experience is in developing and supporting a brand and * Internet of things DID YOU KNOW… FOR 23+ YEARS WE’VE SUPPORTED COMMUNITIES… • $3.5B+ in community impact • 58 housing tax credit equity funds under management • 300+ community development loans extended totaling more than $350M • 650+ housing developments under asset management (over 39,000 affordable apartments) • $400M+ of NMTC allocation under management • 81,000+ jobs created and/or retained • 97,000+ low-moderate income individuals provided with quality, stable, affordable housing NURTURED PARTNERSHIPS… • RELIABLE on-time investor reporting • EXCEPTIONAL portfolio management; never called capital from investors above original commitment amount • FOLLOWED THROUGH ON COMMITMENTS meeting or exceeding IRR targets since inception DID YOU KNOW? [ formerly GREAT LAKES CAPITAL FUND ] Cinnaire is a full-service CDFI partner that supports community stabilization and economic development by developing and nurturing partnerships with investors and mission-focused organizations. We provide creative loans, investments, and best-in-class services to partners. cinnaire.com | 844-4CINNAIRE improving sales performance. The customer decides when and how they want to interact with brands, and this impacts the way companies sell to their customers. Big macro trends such as social, mobile, cloud, big data, and IoT* help create different experiences, but ultimately the customer is becoming far more disruptive than the technology itself and shaping entirely new industries.” So there we have it – from razors, to hotels and auto service, to community banking, disruption is everywhere. Customer experience is the key, not only to success, but to survival. If you don’t give customers what they want, they just might eliminate you from the equation. HB
RkJQdWJsaXNoZXIy MTg3NDExNQ==