Suggestions for Goldmoney

s a shareholder and client of Goldmoney for a number of years, here follows my wishlist for Goldmoney as a service and/or a business:

Please note that some of the below suggestions have already been implemented or are in the process of being implemented.

1) Customer Service

Since GM's vision is to build a gold backed banking service, they should consider what services and/or business model additions they can implement from the traditional banking space:
• Extreme customer centric culture and improved customer service. In my view GM incorrectly focus too much on being a “fintech” or “tech” company and not enough on being a “customer centric” business. Customer service should be a core tenant of the business.
• Solving customer queries has historically taken way too long. Customer support is really terrible.
• Customer call centre. Often too painful to try and solve issues via email.
• Each user over a certain metal threshold are allocated a private banker.

The best companies have an extreme customer centric business model. Amazon is a prime example.

2) Distribution

The name of the game in financial services is "distribution". In banking, traditionally the bank with the widest branch network attracted the most and lowest cost deposits (e.g. Wells Fargo in US). However, with mobile money this is changing and there are other innovative solutions to supplement branches.
Equity Bank in Kenya has been voted the most innovative bank in Africa for years. They pioneered an agency strategy and have more than 30 000 agents nationwide who can open accounts, accept deposits, pay withdrawals (basic financial services). Each agent has an account with the Bank. Upside for the bank is wide distribution and agents being a variable cost (paid per transaction) for the bank instead of a fixed cost like a branch.

Consider adopting an agency network in various countries to be supported by online marketing. Jewelery stores or gold coin stores can be signed up as agents who can assist clients to open GM accounts and they earn commission in return.

Also with regards to distribution, China and India are the largest users of gold in the world. Goldmoney is more well known in the western world. Consider JVs to allow for increased distribution in China and India.

The branches could also be a step in the right direction.

3) Customer Acquisition

No storage fees on client account below 100 grams. This will allow for easier customer acquisition. Once they are in the eco system, there should be incentives for client go over that threshold. E.g. private banker, gold/silver card, concierge, etc

4) Other Services

• Online payments via Goldmoney at e.g. Amazon, Ebay, Takealot (Africa), etc

• Mobile phone payments via something like QR codes et al. This should reduce the 3% odd fee on card transactions and is the direction payments are moving towards.

• Ability to borrow fiat against PM held at Goldmoney. This is already being pioneered by LendandborrowTrust, however their minimums are too high.

• Ability to lend out PM held at Goldmoney in order to earn an interest on PM owned by client.

• GM to declare dividends in gold (as opposed to CAD) and pay into shareholders’ GM accounts

5) Development

• It seems like the new Holding project was launched to early with piecemeal subsequent development and could have created a better perception if it was announced and launched after more behind the scenes development. The could serve as a valuable lesson for future developments.

6) Other matters

• Allow the mobile app to remember username and use fingerprint as password.
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Comments

  • Marco_1983Marco_1983 Posts: 152 Bronze ✭✭✭
    @AEther Very good suggestions!
  • BancersBancers Posts: 23 Tin ✭
    Excellent suggestions!
  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    edited August 2017
    Good suggestions overall. The customer acquisition is a tough one. A few months back I offered to match the incentives to open up a personal account for my friends and family (basically giving them 1-2gg to seed their account), and nearly all said no thanks. I think something needs to fundamentally change (systemically) in order to jog the general public from the fiat/bank deposit trance... at least in the US.

    Also, I really like the dividend part, but I'd like to see them have steady growth in users and profitability first. And I'm not exactly sure how that'd work if the shareholders shares are in retirement brokerage accounts. Good thoughts.
  • mr1mr1 Posts: 363 Bronze ✭✭✭
    @AEther Thanks for the post. A lot of great suggestions there.
    AEther said:

    Since GM's vision is to build a gold backed banking service, they should consider what services and/or business model additions they can implement from the traditional banking space:
    • Extreme customer centric culture and improved customer service. In my view GM incorrectly focus too much on being a “fintech” or “tech” company and not enough on being a “customer centric” business. Customer service should be a core tenant of the business.
    • Solving customer queries has historically taken way too long. Customer support is really terrible.
    • Customer call centre. Often too painful to try and solve issues via email.
    • Each user over a certain metal threshold are allocated a private banker.

    As you mentioned at the beginning, I think a lot of this is being implemented. It sounds like the grandfathered Personal accounts will linger with only email support, but hopefully the move to the Holding accounts with phone support allows Goldmoney to make a lot of progress with their customer service.
    .
    .
    AEther said:

    No storage fees on client account below 100 grams. This will allow for easier customer acquisition.

    It is kind of a pet peeve of mine when customers complain about storage fees as if they are unfair, but as you put it I love the idea of 100 grams of free storage in order to help with customer acquisition.
    .
    .
    AEther said:


    • Mobile phone payments via something like QR codes et al. This should reduce the 3% odd fee on card transactions and is the direction payments are moving towards.

    • Ability to lend out PM held at Goldmoney in order to earn an interest on PM owned by client.

    I especially love those two ideas.
    .
    .
    AEther said:


    • It seems like the new Holding project was launched to early with piecemeal subsequent development and could have created a better perception if it was announced and launched after more behind the scenes development. The could serve as a valuable lesson for future developments.

    Yes. Yes. It was a completely botched transition in my opinion. It has been weeks since the transition and there is still no option for new customers to fund by bank transfers, which was available to new customers prior to the account change. I still don't understand why they didn't just work to add all the Network account features to the Wealth accounts over time and then only close down Personal account signups once the Wealth was ready to become the sole account type. I sure hope they learn from this.


  • AEtherAEther Posts: 8 Tin ✭
    GMONEY1 said:

    The customer acquisition is a tough one. A few months back I offered to match the incentives to open up a personal account for my friends and family (basically giving them 1-2gg to seed their account), and nearly all said no thanks. I think something needs to fundamentally change (systemically) in order to jog the general public from the fiat/bank deposit trance... at least in the US.


    I agree that it is a tough one and a pure online marketing campaign is not going to be sufficient in my opinion.

    Also agree that the West is less amicable towards gold and does not see it as a store of value to the same degree as the East. Thats why GM should focus their offering and marketing much more towards the East. The ideal would have been for them to do a deal with Wechat were GM provides the engine (dealing, storage, etc) and Wechat connect it to their wallet. Then you tap into a 1bn + Chinese market via Wechat platform.
    That ship has likely sailed though cuz Wechat (Tencent) now has their own offering. Unless GM could convince them with a superior offering.

    Same story in India.
  • AEtherAEther Posts: 8 Tin ✭
    GMONEY1 said:


    Also, I really like the dividend part, but I'd like to see them have steady growth in users and profitability first. And I'm not exactly sure how that'd work if the shareholders shares are in retirement brokerage accounts. Good thoughts.

    Agree that now is not the time to pay dividends.

    For shareholders who are clients of retirement brokerage accounts, GM would open an account in the name of the retirement brokerage account who would then allocate it to their various clients. That is also how it is done with brokerage accounts - the stockbroker has one account from where they make investments on behalf of clients and receive dividends from. So the flow would be: Dividend paid to stockbroker account at GM => dividend transferred from stockbroker account to client / shareholder account at GM.
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