Here’s a marketing challenge: Promote a product feature that you are not normally allowed to talk about. The feature is security (of deposits) and for the 30 plus years I have worked in the financial services sector it has been taboo to publicly mention depositor safety.
The safety of deposits in Authorised Deposit-taking Institutions (ADIs) has, quite rightly, always been taken as a given and to promote this feature would have called into question the stability of the financial institution concerned.
Well, how the world has changed. It started with the Irish Government guaranteeing deposits and then it was a case of one in, all in. Now all depositors around the world expect an iron clad guarantee from their government to protect their hard earned savings.
The Rudd Government’s decision to guarantee funds held with ADIs has undoubtedly engendered confidence among Australians. Hopefully, it might even stop some of the unnecessary panic we have seen in recent months.
Some Australians have been literally hoarding their cash as there is a shortage of $100 notes in circulation. Of those hoarders who have bunkered down, some have put their money under the proverbial mattress while others, displaying “rational panic” (excuse the oxymoron!), have at least put their cash in safes.
While I believe the guarantee is subversive to sound economics, I also accept our government had no choice but to follow other governments. So, yes, Gateway is subject to the government guarantee and, like everybody else, we are now promoting our strength and stability. So sleep peacefully.
By the way, if you know someone who has stashed their money in a safety deposit box, politely suggest they put it back into circulation. Spend it or invest it … but don’t hide it!
Paul J. Thomas
Posted Monday, December 01, 2008 
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