John Hunkin should try to be more like Jerry Garcia, according to a new report from Forrester Research Inc., which outlines the lessons bankers can learn about business from The Grateful Dead.

The Grateful DeadÕs path to success is “giving away content, creating a unique customer experience, and licensing their properties ‹ is well-suited to banks looking to break from the pack,” says Forrester analyst Ron Shevlin.

He argues that the Dead created a new business model by virtually giving away recorded music, instead making money by creating a unique concert experience and licensing their images to create a self-sustaining industry. The report says that banks “should emulate the Dead, just skip the long hair.”

“Forrester believes that thereÕs little differentiation among banksÕ online offerings. To break from the pack and cultivate a loyal customer base, banks should emulate the Dead” It suggest that banks should: experiment with free products and services, such as online bill payment or account aggregation, giving up the potential revenue, but securing the customer; make every site visit unique by surprising visitors with personalized advice and guidance that change with every login; and, open their site to other firms.

“More than half of the affluent who use the Web for tax, estate, and retirement planning use financial content sites. In contrast, less than 20% go to bank sites. Why? TheyÕre looking for objective help. Banks should invite insurers, brokerages, and advisors to advertise, communicate with, and take applications from customers on their sites. We believe the commissions and ad revenue theyÕll generate will outweigh potential gains from cross-selling their own products.”

Shevlin says, “The Grateful Dead succeeded because they broke the rules of their industry. Many of the bankers we talk with donÕt want to break rules. But even those that do donÕt know how.” It suggests that adventurous banks can break the rules by personalizing products and services, and by becoming customer advocates.

“As banks compete to be their customersÕ primary financial relationship, building trust is critical. Firms ranked high in customer advocacy, like The Vanguard Group and Fidelity Investments, are perceived to offer products and services that benefit their customers more than they line the firms¹ own pockets.”