A Gift to You

Yeah, I’m happy. We did it again. Even in a tough funding environment, the auction process that we have been using primarily for certificates of deposits has now been a quite successful pricing and funding mechanism for the corporate bonds and preferred stock offerings we have recently completed here at Zions Direct. The cool thing is, as I discussed before, that customers have the power to pick (as a group) what the yield/price should be. For example, our first medium-term note auction had a coupon of 5%, and our bidding community said, in effect, “We would actually be willing to take this at 4.95% (or lower)”—so that’s where it ended up priced.

And the last auction had a coupon of 5.65% and bidders thought collectively, for whatever reason, that they should get more this time for this security, so it ended at 6.35%.

The point of all this is that the customer-led process works. This is similar to the shift we are seeing throughout the online world. More than ever, customers are able choose what to pay, and it is no longer sellers, in our case banks, that are choosing what the price should be (this differs from the bank auction or aggregation sites, which keeps the power with the banks). It creates a more efficient marketplace and both the sellers and the buying community get to reap the rewards of this efficiency (which has other advantages, but I have talked too much already about my company).

So, yeah, I’m excited. This is a big reason why I chose to accept this job; I get to help lead the way into the future of banking—a future that resonates with the consumer-driven, web-enabled models that have disrupted nearly every other industry.

So tomorrow, less bragging about us—but today I am excited. As such, I have included a gift to you. It is one of my favorite ads, and it perfectly fits with the benefits of the product offered. Enjoy.


You may see that I like Zions Direct Auctions. I also work in marketing on that product, which means I may be a bit biased (but it also means I do something that I believe in).


One thought on “A Gift to You

  1. Here we go again:

    Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

    Securities products and services offered by Zions Direct, Member FINRA/SIPC, a non-bank subsidiary of Zions Bank.


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