I recently covered a new service being launched by Charlotte, N.C.-based
First Union called Family Trust in our flagship publication, Innovation
Line (http://www.innovationline.com). The bank says Family Trust is
designed to combine delivery of conventional trust and financial services
with a series of customized health-related offerings - and is specifically
designed to meet the needs of Americans with aging parents. In essence, as
I understand it, the bank is making a small step into the highly
competitive health care arena.
We are generally optimistic for the long-term success of services that
pursue the "share of customer" strategy, so long as they stay focused on
converging customer needs. There might, however, be many problems to
managing a hybrid service that the bank and others ought to consider. I'm
interested in hearing what others think the fate of these kinds of services
will be, whether they can be managed effectively, or make any real
long-term strategic sense at all.
I've included a copy of the story below, and look forward to your
thoughtful responses!
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CONVERGENT NEEDS
The convergence points of consumer needs - such as entertainment and
technology, travel and education, or personal finance and health care --
will be a fertile ground for new services that cement customer relationships.
For example, Charlotte, N.C.-based First Union last week announced the
launch of Family Trust, a service the bank is calling the nation's first
combination of financial management and locally-based personal health care
services. Designed to capitalize on the need of many Americans to care for
elderly family members, the company says Family Trust meets the day-to-day
and long-term financial needs of elder clients while delivering a host of
health-related services, including providing transportation for doctor's
visits, insuring medications are taken properly, handling medical insurance
claims, preparing meals and arranging housekeeping services for elderly.
"When you have someone helping you manage your assets to prepare you more
effectively for key issues like long-term care, then it makes sense to draw
the two together," says Marianna Sheridan of First Union. "Combining
financial and health care services means we have both a product and a
relationship with the client that's unparalleled."
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