The Banking Crisis
How a Swiss watchmakers tactic can save banking
When I set out to make 220, I had a clear inspiration from my time in living and working in Switzerland, and I wanted to share with you the famous Swiss story that helped me design 220.
Switzerland is famous for a number of things and watches are my personal favorite. With manufacturers like Vacheron Constantin in operation since 1755, watchmaking has an incredible legacy in the country. But In 1969, Switzerland’s worst nightmare happened.
Seiko had manufactured the first quartz movement, with off the charts accuracy, it made generations of Swiss fine watch making obsolete, it was cheaper and more accurate. In an age where watches were simply a necessary tool, the masses flocked to these new cheaper offerings causing a massive decline in the industry.
Incumbents on the whole tried to compete, either adopting quartz or pricing down. En Masse they closed their doors, from 1600 manufacturers in 1970 to 600 in 1983.
Then someone had a truly mad idea. Audemars Piguet decided to risk it all. They made the worlds most expensive watch of the day, the Royal Oak. At 10x the price of a Rolex Submariner, it was incredibly expensive.
They brought in a new designer and risked the entire company on the strategy, Gerald Genta designed it in just under a day.
They sold just 1000 watches in the first 3 years, but to the right people. The Shah of Iran was one of the very first customers among a flock of incredibly high status patrons.
They in effect used influencers, before the term had even been coined.
The upper classes saw the elite wearing the royal oak and its status was forever cemented as an icon, the first truly luxury time piece. A Veblen good, where it’s price increases demand as a status symbol, an icon of wealth.
It saved Audemars Piguet, it initiated a whole new concept of watches, that they could do more than tell the time. They held the torch that reinvigorated Swiss watch making.
I love this story, as a parable to simply being daring, and having a commitment to quality, and I wanted to apply that to an entirely new market, and what do we see today?
NeoBanks, they are faster, cheaper, better than your ordinary retail bank, with their client growth rates at nearly 300% in the case of Revolut, the time to act for incumbents is passing.
In the market they pitch themselves on two core elements, pricing and ease of use. But I see the same old situation as with watches in the quartz crisis.
These banks are cheap and simple, but they utterly fail to accommodate users of higher value.
You deposit 10m in Monzo? You get the same as the rest. You spend 2k+ in a transaction? Your account is frozen. You want to speak to customer service? Wait in line. Incentivized by growth metrics grabbing more VC money, you are a number in a box not a valued client.
Audemars Piguet realised that if you make a product for just anyone, you’re no one. You hardly ever spot an Audemars Piguet, but you know it from a mile a way when you do, and there’s an immediate ‘wow’ factor. That’s exactly what we designed 220 to be.
220 will never be for anyone, you will most likely not see my card in person. So take a look, because if you see this card coming out, you are with the most valuable person in the room.
220 stands for second to none, and we are bringing a new definition of luxury to the neo-banking market. We offer all of your standard neo-bank offerings of commission free forex, multi currency accounts, free transfers, savings pots and round up features, we then add in private client events, discounts at our luxury partners including hotels and airlines, airport lounge access, travel insurance, and we give you access to a number of exclusive events world wide through our network.
220bank.com
