New Revenue Math
Smith, Alan, Independent Banker
Calculations in tackling the fee income conundrum
Technological advances have led to dramatic improvements in commercial and consumer banking services- balance transfers, account opening, statement viewing and bill payment. Tasks that used to take hours now take minutes. Services have improved tenfold, yet remarkably, most services still remain free for the majority of banking customers.
At the same time, legislative changes and regulatory responses are compromising the profitability of deposit customers, specifically the free-account customers. With interest rates and loan demand at anemic levels, demand deposit balances are not as valuable as when loan demand and rates …
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Publication information: Article title: New Revenue Math. Contributors: Smith, Alan - Author. Magazine title: Independent Banker. Volume: 61. Issue: 4 Publication date: April 2011. Page number: 76+. © 2002 Independent Banker. Provided by ProQuest LLC. All Rights Reserved.
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