Google poses a threat to banks as potential competitors because banks now primarily "move bits" like software and internet companies by offering digital financial services, rather than physical banking services. While banks and Google currently have different products - banks offer financial services like deposits and loans, while Google offers search, email, and advertising services - Google has the capabilities and resources to potentially enter the banking market. As a bank manager, one should be worried about Google becoming a nightmare competitor and consider how to make their bank better than Google's potential banking application or services.

1. A Banks nightmarecompetitor is Google By Paul Brink, March 2011

2. A Banks nightmare competitor is Google Sounds weird? Let me explain…

3. Companies can roughly be divided into two groups Companies that move atoms Companies that move bits See: Being Digital, 1995 by Nicholas Negroponte

4. 1. Companies that move atoms Companies that move atoms are companies that produce or transport physical products For example: Philips, Heineken, KLM

5. 2. Companies that move bits Companies that move bits (zeros and ones) are companies that produce or transport bits of information, in other words: produce or use software 1) For example: Microsoft, Google, Amazon 1)Software is: zeros and ones that change zeros and ones into other zeros and ones

6. Companies that move atoms and bits Most companies are moving bits one way or the other, but not all companies move atoms Nowadays a bank doesn’t move atoms anymore, they only move bits The same goes for insurance companies

7. Therefore a bank has become a sort of software company

8. Like…

10. But what makes a bank different from Google?

11. Not their customers Most customers of a bank are using Google, most users of Google are customer of a bank

12. No, their products makes them different

13. What does Google do? Google Inc. is a company investing in Internet search, cloud computing, and advertising technologies Google hosts and develops a number of Internet-based services and products like: Google search, Docs, Gmail, Maps, Chrome, Books, Health, AdSense, etc. etc.

14. What does a Bank do? A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets A bank connects customers with capital deficits to customers with capital surpluses

15. But if Google can make a search engine covering the entire internet, can make an operating system for your desktop, an e-mail system serving millions of users… Why can’t they make a banking application?

16. Ultimately a banking application is much easier to make than an operating system or a platform that connects thousands of people And…

17. Google is offering most of these services for free! So…

18. If I were a bank managerI would be worried

19. …be very worried!

20. So dear bank manager have a good night sleep and think how your Bank is better then .

21. …or Facebook!

22. Don’t let Google become your nightmare competitor

23. Sweet dreams!

24. “...”

25. “Maybe it’s...”

26. “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker

27. “Because the purpose of business is to create and keep a customer, the business enterprise has two, and only two, basic functions: marketing and innovation.” “Marketing and innovation produce results;all the rest are costs.” Peter Drucker

28. The Hedgehog Concept: Three overlapping circles: What makes you money? What could you be best in the world at? and What lights your fire? James C. Collins The 4th of the seven characteristics of companies that went from good to great. From thebook “Good to Great: Why Some Companies Make the Leap... and Others Don't”, 2001

29. Technology Accelerators: Using technology to accelerate growth, within the three circles of the hedgehog concept James C. Collins The 7th of the seven characteristics of companies that went from good to great. From thebook “Good to Great: Why Some Companies Make the Leap... and Others Don't”, 2001

30. Paul Brink Website http://paulbrinkfotografie.nl LinkedIn http://www.linkedin.com/in/pauljohanbrink Flickr http://www.flickr.com/photos/paul_brink/

31. DisclaimerThis is my personal private opinion, not the opinion of the website managers, director or editors or the organization I work for. My goal is to challenge my personal opinion to the opinion of others. “The many are smarter than the few.” So feel free to respond.